LONDON (ShareCast) - (ShareCast News) - Business and consumer financier, Secure Trust Bank announced it would continue to take steps aimed at decreasing its credit exposure by upping its acceptance criteria for small to medium-sized customers over the first half.
Secure Trust indicated its decision was based on slowing UK economic growth and the heightened levels of uncertainty surrounding Brexit.

In its half yearly report released on Tuesday, the group said it had increased pre-tax profit 11% year-on-year to £13.9m.

Even though group shifted away from subprime lending in the half and moved towards lower risk lending, Secure Trust's motor finance books grew 9% in the six months ending 30 June, up to £258.4m from the £236.2m it posted at the same time last year.

A 39% increase in total customers brought about an increase in its total loan book, up 34% to £1.5bn and a 27% increase in customer deposits to £1.32bn.

Real estate finance lending was up 50% to £541.4m as the company raised its total asset portfolio 24% to £1.67bn.

Paul Lynam, chief executive, said, "The first half of 2017 has seen a continuation of the strategic repositioning of the business commenced in 2016. Over this time we have considerably reduced our activities in higher risk consumer lending and did so before the recent warnings from the Bank of England and regulatory bodies. We have reallocated capital to lower risk lending segments and are pleased with the strong growth achieved here. We remain strongly capitalised and well positioned to grow the Bank's lending portfolio in line with our ambition and risk appetite and have a clear growth strategy."

The group posted basic earnings per share of 60.6p, a 6% increase on 2016's figure.

As of 1010 BST, shares were stable, up 0.25% on the opening bell to 1,825.00p.

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