Q1 2024 Trading Update

Secure Trust Bank PLC ("Secure Trust Bank", "STB" or the "Group"), a leading specialist lender, is pleased to announce its trading update for the first quarter ended 31 March 2024, with further growth in net lending balances, good progress on Project Fusion cost savings and trading in line with management expectations.

Highlights

Net lending

The net loan book grew by 1.7% in the quarter and 11.9% compared to Q1 2023. Encouraging growth of 3.8% was achieved by Real Estate Finance in the quarter. Commercial Finance balances declined in the period reflecting the challenging market environment. Balances in Vehicle Finance grew by 1.6% and in Retail Finance by 1.4%.

Deposits

Customer deposits grew by 1.7% in the quarter to support our lending objectives. Deposit balances were 14.8% higher compared to Q1 2023.

David McCreadie, Chief Executive Officer, said:

"The Group continued to grow net lending in the quarter and is trading in line with management expectations. I am pleased that the positive momentum from last year has continued and that we have taken another step towards our £4 billion net lending ambition.

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We have seen improved lending quality in Retail Finance and continued to enhance our collections processes in Vehicle Finance. We have identified further opportunities to streamline our operations and generate additional cost efficiencies.

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With the UK economy returning to growth and the likelihood of interest rate reductions improving, we remain confident in delivering on our plans for the full year and our medium term targets."