Secure Trust Bank reports broadly stable profits
By Josh White
Date: Thursday 12 Mar 2026
(Sharecast News) - Secure Trust Bank reported broadly stable profits for 2025 on Thursday, while strengthening its capital position and outlining refreshed strategic plans aimed at accelerating growth and lifting returns above 16% in the medium term.
The London-listed lender said continuing profit before tax was £59.3m for the year ended 31 December, broadly unchanged from £59.4m a year earlier, while return on average equity eased slightly to 14.3% from 14.6%.
Net lending balances rose 8.1% to £3.3bn and customer deposits increased 8.2% to £3.5bn, supporting growth across the group's lending operations.
The bank's cost-income ratio improved by 220 basis points to 45.2%, reflecting income growth and cost efficiencies generated through its Project Fusion optimisation programme.
Tangible book value per share increased 5.8% to £19.73, while the common equity tier one ratio strengthened to 12.9% from 12.3%.
Secure Trust Bank said the sale of its consumer vehicle finance business, completed on 25 February, would further lift its CET1 ratio to 14.7% on a pro forma basis, freeing capital for growth and shareholder returns.
The board increased the total dividend for the year to 35.5p per share from 33.8p previously and said it intended to launch a £10m share buyback programme over the next 12 months, subject to regulatory approval.
Its net interest margin remained stable at 4.7%, while the cost of risk rose to 1.0% from 0.8% following three specific cases in the business finance division and a normalisation of impairment charges in retail finance.
Secure Trust Bank said its lending growth was driven by both major divisions.
Retail finance balances increased 8%, supported by its retail distribution network, while business finance grew 8.1%, with real estate finance rising 9.4% and commercial finance increasing 3.2%.
The bank also updated its strategy following a review conducted during 2025, simplifying its structure to two lending divisions - retail finance and business finance - supported by its savings division.
It said the refreshed strategy was focussed on product expansion, enhanced digital capabilities and disciplined capital allocation.
Under its new medium-term targets, the group said it was aiming for around 10% annual net lending growth and a return on average equity above 16%, supported by operating leverage and improvements in efficiency that were expected to reduce the cost-income ratio to between 35% and 40% over time.
For 2026, Secure Trust Bank said it expected net lending growth of between 8% and 10%, a roughly 10 basis point improvement in risk-adjusted margins and a CET1 ratio of around 13.5%.
It said the year would be transitional as the bank launches new products and reduces costs following the exit from vehicle finance.
"Our strategy is simple. We will grow in large investable scale markets, where there are product driven opportunities that leverage our proven capabilities, and we will do this with operating leverage that will deliver an improved cost income ratio in the medium-term," said chief executive Ian Corfield.
"We have a clear trajectory to higher returns, delivered at a reduced cost of risk.
"We are well capitalised and intend to deliver value back to shareholders through a share buyback programme.
"In combination this will allow us to deliver targeted growth at higher returns."
At 1239 GMT, shares in Secure Trust Bank were up 0.71% at 1,420p.
Reporting by Josh White for Sharecast.com.
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