Q3 2023 Trading Update
No summary for this filing – the full text is below.
Select text to share a quote on X · sign in to keep highlights & notes in your STB notes
Secure Trust Bank PLC ("Secure Trust Bank", "STB" or the "Group"), a leading specialist lender, is pleased to announce its trading update for the third quarter ended 30 September 2023, with ongoing momentum from the Group's Optimising for Growth strategic priorities.
The net loan book continued to grow and the Group continues to trade in line with management's expectations on an underlying basis. Management has increased the expected annualised savings to be delivered from Project Fusion, the Group's cost optimisation programme, to £5m by the end of 2024.
Highlights
| Q3 2023 | Q2 2023 | Change | Q3 2022 | Change | |
|---|---|---|---|---|---|
| Net lending | £3,212.2m | £3,158.5m | 1.7% | £2,813.4m | 14.2% |
| New business lending | £578.7m | £624.0m | -7.3% | £502.1m | 15.3% |
| Deposits | £2,717.1m | £2,648.9m | 2.6% | £2,349.2m | 15.7% |
Net lending
The customer loan book grew by 1.7% in the quarter and 14.2% compared to Q3 2022. Strong growth in the quarter of 16.4% was delivered by Commercial Finance as leads were converted to new facilities. Real Estate Finance lending was consistent with Q2 2023. Consumer Lending grew by 1.1% in the quarter and 23.2% compared to Q3 2022.
New business
Total new business lending decreased by 7.3% in the quarter and increased by 15.3% compared to Q3 2022. Business Finance delivered 29.8% growth on Q2 2023 and 62.5% growth on Q3 2022. Following a record Q2 2023, Consumer Finance recorded reduced new business lending volumes in the quarter as spending by consumers softened.
Deposits
The Group has continued to raise deposits in a market that has seen a rise in the cost of retail funding. Customer deposits were 2.6% higher at the end of the quarter and 15.7% higher than Q3 2022.
David McCreadie, Chief Executive Officer, said:
"The Group has continued to grow in the third quarter and demonstrated the diversity of its business model with Business Finance contributing its highest quarterly new business volumes in over a year. Our positive momentum continues, given our strength in specialist markets and we remain on track to achieve our medium term targets, including our plan to deliver £4m in annualised cost savings this year rising to £5m in 2024.
The continuing fall in inflation is welcome. We may have seen the high point of interest rates as a result, although the current rate environment has resulted in demand softening more recently. The impacts of the recent high inflationary environment may not have materialised fully yet and so we continue to monitor our markets and customer portfolios closely. We will continue to support our customers and trading partners as required.
We are holding our second Capital Markets Day today which will focus on the strengths of our V12 Retail Finance business and demonstrate the pathway to delivery of the Group's medium term targets."
The Group has released a separate announcement relating to the Capital Markets Day.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.