Q3 2026 Trading Update
Secure Trust Bank PLC has announced its Q3 2026 trading update, confirming it remains on track to deliver consensus FY 2026 profit before tax expectations of £63.7 million, despite softer market conditions impacting fee income in Business Finance. The Group successfully completed its £10 million share buyback programme, returning excess capital to shareholders, and continues to execute its cost management programme targeting £25 million in savings by FY 2028. The continuing loan book grew 1.4% in Q3 to £3.5 billion, with year-to-date and year-on-year growth at 6.4% and 9.5% respectively, while customer deposits remained stable and credit performance robust. All 2026 product initiatives are generating new business, and the V12 mobile app relaunch has seen significant user engagement. Guidance for FY 2026, including net lending growth of 8-10% and a cost-income ratio of approximately 47%, remains unchanged.
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Secure Trust Bank PLC ("STB" or the "Group"), a leading specialist lender, announces its trading update for the third quarter ended 30 September 2026.
Ian Corfield, Chief Executive Officer, said:
"We continued to deliver against our strategic priorities, with targeted lending growth across our businesses and execution of our cost management programme. The successful completion of our £10 million share buyback programme reflects our focus on disciplined capital allocation, delivering value to shareholders. The business continues to demonstrate resilience despite a challenging macroeconomic environment.
While softer market conditions in asset-based lending have impacted fee income in Business Finance, we remain on track to deliver consensus FY 2026 profit before tax expectations, supported by growth across the broader business. We remain confident in the delivery of our medium-term targets and focused on sustainable growth in attractive specialist markets."
Q3 financial and operational highlights
- Successfully completed the second £5 million tranche of the £10 million share buyback programme, returning excess capital from the sale of the Consumer Vehicle Finance business back to shareholders.
- Momentum maintained in the execution of the cost management programme, management remain confident of delivering the target £25 million of total cost savings in FY 2028.
- The continuing1 loan book, at £3.5 billion, increased 1.4% due to growth in Business Finance, despite a softer market for asset-based lending. Year-to-date loan book growth was 6.4% and year-on-year growth was 9.5%.
- All product initiatives launched in 2026, across our two lending divisions, are now generating new business, with growing pipelines providing momentum into 2027.
- Customer deposits remained broadly stable. The Group continued actively to manage funding requirements.
- Credit performance has remained robust.
- The Retail Finance V12 mobile app relaunched in September and now has over 780,000 registered users. Record levels of customer interaction, self-service and digital payments are improving customer outcomes and reducing operational demand.
Company compiled consensus FY 2026 profit before tax of £63.7 million is the simple average of analysts' forecasts for STB's FY 2026 adjusted profit before tax.
| 2026 guidance unchanged | Target |
| 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 Launch £10 million buyback programme |
| Discontinued activities | Break even profit before tax before adjusting items |
| Medium-term targets for delivery in FY 2028 unchanged | |
| Annual growth in net lending | c.10% |
| Return on Average Equity | >16% |
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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