Q1 2025 Trading Update
Q1 net lending grew 3.2% to £3.7bn, deposits up 3.9%, tracking towards £4bn target.
vs expectations: in line
- Net lending £3,725.4m (prior £3,608.5m)
- Net lending year-on-year 10.5%
- Deposits £3,372.8m (prior £3,244.9m)
- Deposits year-on-year 15.4%
- TFSME repaid to date 74%
- Defaulted Vehicle Finance loans sold £25.8m
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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 2025. The Group delivered continued growth in net lending and is trading in line with management expectations.
Highlights
| Q1'25 | Q4'24 | QoQ % Change | Q1'24 | YoY % Change | |
|---|---|---|---|---|---|
| Net lending | £3,725.4m | £3,608.5m | 3.2% | £3,372.6m | 10.5% |
| Deposits | £3,372.8m | £3,244.9m | 3.9% | £2,921.8m | 15.4% |
Net lending
The net loan book grew by 3.2% in the quarter (to £3.7bn) and 10.5% year-on-year. In Q1'25 Business Finance and Consumer Finance net lending balances grew by 4.9% and 1.8% respectively. This reflected strong pipeline conversion from Q4'24. The Group is within reach of its £4 billion net lending ambition in the near term.
Deposits
Customer deposits grew by 3.9% in the quarter (to £3.4bn) to support our lending objectives and were 15.4% higher compared to Q1'24. In Q1 the Group repaid a further £98m of TFSME ahead of maturity with a further £30m repaid since the end of the quarter. 74% of all TFSME funding has now been repaid, with £102m outstanding.
Debt sale completed
In early April, the Group sold £25.8m of defaulted Vehicle Finance loan balances that had built up through 2024 following the secondary impacts of the FCA's Borrowers in Financial Difficulty review. This transaction is the first of several initiatives that will allow operational resources to be deployed more effectively to manage early-stage arrears and defaults.
David McCreadie, Chief Executive Officer, said:
"The Group delivered strong net lending growth in the period, moving closer towards our £4 billion net lending ambition. We continue to manage the trajectory towards this level prudently. We are monitoring for potential impacts of the current turbulence in global markets and across the geopolitical landscape.
I am pleased that we have completed the first key initiative that significantly reduces the excess stock of defaulted loans in Vehicle Finance. We also completed the implementation of our new operating model and are on track to deliver the previously announced £8m of annualised cost savings from Project Fusion1 by the end of this year. We are looking ahead with confidence."
1 Project Fusion savings measured against FY 2021 cost base.
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