Q1 2026 trading update
Secure Trust Bank PLC reported a trading update for Q1 2026, showing net lending balances grew 1.5% sequentially to £3,345 million and 6.6% year-on-year to £3,137 million, driven by Retail and Business Finance growth. Customer deposits decreased 10.3% sequentially to £3,149 million and 6.6% year-on-year, reflecting the sale of the Consumer Vehicle Finance business. The Group remains on track to achieve its full-year 2026 guidance, including an 8-10% net lending growth target, and is preparing to launch a £10 million share buyback program, pending regulatory approval.
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Secure Trust Bank PLC ("STB" or the "Group"), a leading specialist lender, announces a trading update for the first quarter ended 31 March 2026. The Group remains on track to achieve its full-year 2026 guidance.
Q1 2026 performance overview
| Q1 2026 £m | Q4 2025 £m | QoQ % Change | Q1 2025 £m | YoY % Change | |
|---|---|---|---|---|---|
| Net lending - continuing 1 | £3,345 | £3,296 | 1.5% | £3,137 | 6.6% |
| Deposits | £3,149 | £3,510 | (10.3)% | £3,373 | (6.6)% |
Net lending
Continuing net lending balances grew by 1.5% in the quarter, and by 6.6% year-on-year. This reflects a broadly stable quarter in Retail Finance, which grew by 7.3% year-on-year, driven by a strong performance in Furniture. Business Finance grew by 3.0% in the quarter, up 6.1% year-on-year, supported by growth from its new Bridging product.
New product initiatives have gained traction in the quarter. Key roles are now fully recruited and operational readiness including technology development is progressing well. Lending activity has commenced across these products, with a growing pipeline building positive momentum to support growth ambitions.
Deposits
Customer deposits decreased by 10.3% in the quarter and 6.6% year-on-year, reflecting the reduced funding requirement following completion of the sale of the Consumer Vehicle Finance business in February 2026.
Capital
The Group is on track to initiate the previously stated £10 million share buyback programme, with an application for regulatory permission having been submitted and pending approval.
2026 previously stated guidance
| Net lending | 8-10% growth |
| Risk adjusted margin | c. 10 bps improvement |
| Costs | Cost income ratio c.47% |
| Capital | Common Equity Tier 1 ratio c.13.5% |
| Distributions | Progressive dividend policy maintained Intention to launch £10 million buy-back programme, subject to regulatory approval |
| Discontinued activities | Break even profit before tax pre-exceptionals |
| Medium-term targets | |
| Annual growth in net lending | c.10% |
| Return on Average Equity | >16% |
The Group's interim results for the six months ending 30 June 2026 are due to be released on 13 August 2026.
Ian Corfield, Chief Executive Officer, said:
"In Q1 2026 we have driven good progress against our strategic priorities that we set out in March. Growth in our lending divisions and momentum in newer product propositions reflect our continued focus on disciplined execution to deliver higher returns. Whilst mindful of the instability caused by current macroeconomic events, we remain on track for the full year and confident of our medium-term prospects."
Footnotes
- Continuing activities include Retail Finance, Business Finance, and Central operations. Discontinued activities include the Vehicle Finance business.
- Business Finance, and
- Retail Finance through its V12 brand.
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