Secure Trust Bank "on track" for full year as interim profit rises

Secure Trust Bank PLC on Thursday reported an increased dividend and common equity tier 1 ratio, alongside growing profit, for its first half.

Its stock was up 2.9% at 1,614.00 pence on Thursday afternoon in London.

The Solihull, England-based business and consumer lender's pretax profit grew 41% to £31.4 million for the first six months of 2026, from £22.3 million the year before, "reflecting growth in net lending balances and stable risk adjusted margins".

Adjusted pretax profit rose 9.4% to £31.3 million from £28.6 million, "reflecting improved profitability and reduced losses from the discontinued Vehicle Finance business".

Basic earnings per share rose 44% to 126.4 pence from 87.6p, while adjusted basic EPS rose 13% to 126.4p from 112.2p.

Net interest income decreased to £76.6 million from £99.0 million, and the bank's net lending balance grew by 4.9% to £3.5 billion from £3.3 billion.

Total return on average equity rose to 12.3% from 9.2%, and the adjusted return on required equity increased to 14.5% from 13.9%.

Secure Trust reported a CET1 ratio of 14.3%, up from 12.9% in light of its exit from the Vehicle Finance business.

It also declared a 12.4p per share interim dividend, up 5.1% from 11.8p.

Looking ahead, Secure Trust reiterated its full-year and medium-term targets. These include net lending growth of 8% to 10%, and a roughly 13.5% CET1 ratio, for 2026. Mid-term net lending growth is forecast to reach around 10% per year.

"In March this year, we set out a new set of strategic priorities and medium-term targets for delivery in FY 2028," commented Chief Executive Officer Ian Corfield. "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."

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