Secure Trust Bank sees full-year profits rise
The group has moved away from unsecured consumer lending and sub-prime motor lending.
Secure Trust Bank has reported a rise in full-year profit after the group successfully moved away from the high-risk consumer credit market.
The challenger bank posted 28.9% increase in pre-tax profits to £25 million in the year to December 31, helped by a 33.2% surge in customer numbers to 989,528.
Secure Trust’s loan book increased 27.3% to £1.6 billion, customer deposits rose 29% to £1.5 billion and new business lending volumes topped £1 billion for the first time.
Chief executive Paul Lynam said: “The refocusing of the group’s lending activities has materially reduced our exposure to higher risk consumer credit, enabling us to allocate more capital to lower risk lending.
“I am confident that the benefits of this strategic repositioning will become increasingly visible as 2018 progresses, not least as we started this year with our largest ever pipeline of new business opportunities.”
Secure Trust has moved away from unsecured consumer lending and sub-prime motor lending and instead invested in launching a new mortgage division and is focusing more on prime motor loans.
Real estate finance lending balances were up 28.8% year on year to £580.8 million and Secure Trust said it is looking to extend its product range and “proposition to customers that are under-served”.