Secure Trust Bank on track to hit profit forecasts as loan book grows

Secure Trust Bank PLC on Thursday said it remains on track to deliver consensus profit expectations and that it is confident in its mid-term targets.

In a trading update, the Solihull, England-based business and consumer lender said the continuing loan book increased 9.5% to £3.5 billion in the quarter ended September 30 from the year prior, due to growth in Business Finance, despite a softer market for asset-based lending.

Year-to-date loan book growth is 6.4%. with sequential growth of 1.4%.

All product initiatives launched in 2026, across its two lending divisions, are now generating new business, with growing pipelines providing momentum into 2027, the firm said. Customer deposits remained broadly stable and credit performance has remained robust, it added.

Chief Executive Ian Corfield 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."

Corfield said while softer market conditions in asset-based lending have impacted fee income in Business Finance, the firm remains on track to deliver consensus 2026 pretax profit expectations of £63.7 million, supported by growth across the broader business. This would be up 7.4% from £59.3 million reported in 2025.

"We remain confident in the delivery of our medium-term targets and focused on sustainable growth in attractive specialist markets," he added.

Guidance for 2026 remains unchanged. The firm continues to target net lending growth of 8% to 10%, a 10 basis points improvement in risk adjusted margin, a cost income ratio of 47% and a common equity tier 1 ratio 13.5%.

Secure Trust Bank traded down 2.2% at 1,416.00 pence each in London on Thursday.

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