Secure Trust Bank PLC ('STB' or the 'Group'), a leading specialist bank, today announces its interim results for the six months ended 30 June 2026.
CEO Ian Corfield said:
"In March this year, we set out a new set of strategic priorities and medium-term targets for delivery in FY 2028. I am pleased with the Group's growth in lending, profits and returns in the first half of 2026, which already reflects strong execution against our plans and reinforces confidence in our medium-term targets. The actions we have taken to reposition the Group for sustainable growth and improved returns are delivering results and strengthening our ability to serve customers better and create long-term value for shareholders. The Group remains on track to achieve its FY 2026 guidance."
2026 interim highlights
- Adjusted2 profit before tax increased by 9.4%, reflecting growth in net lending balances and stable risk adjusted margins
- Total profit before tax increased by 40.8%, reflecting improved profitability and reduced losses from the discontinued Vehicle Finance business
- Adjusted2 RORE3 increased by 60 bps due to income growth from a 4.9% increase in net lending, with growth in the Group's core product suite supported by new product initiatives
- Risk adjusted margin remained stable at 4.2% due to continued pricing discipline and a lower cost of risk at 0.9% (30 June 2025: 1.0%)
- Adjusted2 cost income ratio of 46.5% is in line with 2026 guidance with £5.5 million of cost savings delivered in the first half of the year; annualised run rate of savings of £15 million4
- CET 1 ratio increased by 140 bps following the exit from Vehicle Finance
- Share buyback programme underway, expected to deliver £10 million by the end of 2026, with the first £5 million tranche complete
The Group has made good progress against its strategy and the new set of strategic priorities set out in March this year.
Targeted growth for higher returns
Product Expansion
- Secured partnerships with Magnet and Centrica British Gas in Retail Finance and 19 smaller home improvement retailers onboarded
- In Business Finance, £40 million of Bridging loans originated and newly formed Speciality Finance team generating H2 pipeline
- Launched new base rate tracker product and signed first deposit aggregator relationship
Effective Digital Solutions
- Bridging digital application portal launched
- Over 660,000 users registered for the Retail Finance app (31 December 2025: 475,000+)
- Enhanced automation in Savings, reducing time-to-market for new products
Capital Discipline
- £10 million share buyback programme received regulatory approval, with the initial £5 million tranche complete and the second £5 million tranche planned for H2
- 4.9% lending growth at stable risk adjusted margins
