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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Secure Trust Bank Plc | STB | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 688.00 | 08:00:19 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 688.00 |
| Announcement Date | Type | Currency | Dividend Amount | Ex Date | Record Date | Payment Date |
|---|---|---|---|---|---|---|
| 09/08/2023 | Interim | GBP | 0.16 | 31/08/2023 | 01/09/2023 | 28/09/2023 |
| 30/03/2023 | Final | GBP | 0.291 | 27/04/2023 | 28/04/2023 | 25/05/2023 |
| 04/08/2022 | Interim | GBP | 0.16 | 25/08/2022 | 26/08/2022 | 26/09/2022 |
| 24/03/2022 | Final | GBP | 0.411 | 21/04/2022 | 22/04/2022 | 19/05/2022 |
| 05/08/2021 | Interim | GBP | 0.2 | 26/08/2021 | 27/08/2021 | 27/09/2021 |
| 25/03/2021 | Final | GBP | 0.44 | 22/04/2021 | 23/04/2021 | 21/05/2021 |
| 29/03/2019 | Interim | GBP | 0.2 | 29/08/2019 | 30/08/2019 | 27/09/2019 |
| Top Posts |
|---|
Posted at 21/3/2024 10:37 by lord gnome The only reason that the dividend yield appeared so high was because the share price has halved in the last two years. Something not quite right here. A huge discount to nav and yet it can't generate a decent return. |
Posted at 21/3/2024 10:17 by brucie5 Very frustrating, as I had this as one of my better dividend payers. Clearly it was not on a large discount for nothing and this follows hard on the heels of disappointing results from OSB. No wonder so many companies with large nominal dividends are at correspondingly large discounts - the markets simply do not trust the headline figures.Nevertheless, I haven't yet decided to sell. Traditionally, I believe cuts in dividends may be followed by rerating of the share price as the balance sheet strengthens. Maybe, maybe not. |
Posted at 21/3/2024 09:51 by tomps2 Secure Trust Bank (STB) FY23 results highlights - March 2024David McCreadie, CEO, outlines Secure Trust Bank’s Full Year 2023 highlights for the period ended 31 December 2023. Watch the video here: hxxps://www.piworld. Or listen to the podcast here: hxxps://piworld.podb |
Posted at 21/3/2024 09:40 by cfro I'm actually quite happy with these results myself. It is a very conservative bank becoming even more conservative imo..People seem to forget what a difficult last three or four years we have had what with Covid, Wars, inflation and the cost of living crisis, some of which are still on-going.. They have steered through this difficult period rather well and further provisions have been made in the accounts to cover other future liabilities from Vehicle finance etc. Yes, the dividend has been cut but can we really honestly expect a bank to continue to pay out a 7 or 8% yield consistently? Perhaps not. It still yields a healthy 5% at this price plus they are moving to a progressive dividend policy from now on too. Importantly the outlook statement is positive also, but the key for me was the 4% increase in tangible book value to £17.80.. |
Posted at 02/3/2024 19:56 by apple53 MrScruff,I agree this is a great opportunity for investors. I don't agree with your view on rates or growth etc., and I wrote the following to remind myself of history and the investment case for these banks. Higher rates tend to benefit earnings, though much higher rates are typically thought likely to increase bad debt charges. Materially higher rates and a high recession risk is normally enough to hit multiples. [it is important you don't have silly regulators that require you to buy reams of government bonds at low interest rates - this is what killed SVB and, arguably, First Republic]. Overall, though, there isn't really any correlation between rates and multiples. 'Any growth' doesn't tend to drive the share price violently up. Balance sheet growth requires capital, and more than it used to under Basel 1/2. In the case of STB the drive for rapid growth probably hit the share price, as it required a dividend cut, and also because some shareholders are rightly scared of rapid growth in bank balance sheets. One of the clearest correlations (with causation) in banking is rapid growth and subsequent high (sometimes disastrous) bad debts. Bank investors 'normally' like modest balance sheet growth, faster growth in fee income, a low level of dealing income and an expectation of a falling cost income ratio. Historically, banks have traded at 8-15x forward eps. It is only in the past few years that 5x earnings has been considered normal, and this in Europe, but not the US, where 9-12x is more typical. What is doubly weird about the ridiculously low multiples is that UK banks are much much safer than they used to be. Equity capital ratios are 2.5-4x higher than in the noughties. [There is a downside to this - RoEs are lower, and incremental growth needs more incremental capital]. They are also encouraged to ex-ante provision (which is good as it helps to smooth provisioning across the cycle). Overall CoE should be lower. None of this means that banks are immune to property market collapses. Some (US) banks are over-exposed to commercial property (NYCB). This has been the cause of most bad debt crises (as opposed to the liquidity crisis post-Lehman). Resi mortgages are also at risk from a big increase in unemployment, double digit interest rates, 40% falls in value (each in isolation) or a milder combination of the 3. The other risk to banks is social media, which magnifies problems that used to swept under the carpet, such that issues which might have been manageable with a couple of year's retained earnings can now be enough to cause a run. STB is probably the weirdest example (and could be the cheapest bank in the developed world), but OSB stands out even more. STB is tiny; OSB merely small. STB is building a growth track record; OSB already has one. STB is modestly profitable; OSB is very profitable (for a modern bank). STB is modestly at risk from an increase in bad debts; OSB is highly cushioned - it has SUCH a low cost income ratio that its leverage to an increase in bad debts is almost the lowest in the industry. If it was 10x the size and based in the US it would trade at twice the valuation or more. I have no idea when this situation will 'normalise', but in the mean time these banks need to buy back their stock (and I would happily forgo some yield to fund this). |
Posted at 24/2/2024 19:42 by popit Still very good value here and it is difficult to understand why they are both so lowly ratedSecure Trust Bank Forecast PE is less than 3 Dividend yield is about 7% Price to Book is about 0.4 Halyk Bank Forecast PE is less than 3 Dividend yield is about 15% Price to Book is about 0.8 |
Posted at 20/1/2024 09:48 by buffett4 I work in motor finance and unless I am missing something I do not believe that STB have any involvement in the historical commission arrangements that the FCA are potentially classing as unfair. It is my understanding that they relate to a 'difference in charges' (DIC) commission structure where by the broker/dealer historically received a higher commission from the lender for selling a higher rate to the customer. This was common place in the market from 'prime' motor finance up to three or four year ago. However, I believe that since the prime motor finance business at STB namely V12 was only introduced a few years ago , I dont think they ever offered 'DIC' commission arrangements. The new arrangements are typically a fixed % commission based on a fixed rate. Moneyway are a non-prime lender, we have dealt with them for over a decade. In the non-prime market DIC arrangements were not common place, and typically the lender pays a set fee dependent upon various factors such as the tier of lender (dependent upon the customers credit score) etc. I do not recall Moneyway ever offering a DIC commission arrangement. So please DYOR but it is my opinion from what I can gather at this stage that STB are in the clear in relation to potentially unfair historical commission arrangements. Hope that is helpful. |
Posted at 14/10/2023 09:23 by checkers2 Secure Trust featured in Ennismore September Newsletter:Secure Trust Bank – UK specialist lender (1.8% NAV) Secure Trust Bank is a GBP 120m market capitalised UK specialist lender. We wrote about the company back in January 2019 and since then it has generated GBP 145m in net profit and paid out GBP 45m in dividends. Yet the market capitalisation has fallen by circa GBP 140m in this time, with the share price more than halving. This does leave however a situation where the stock could double or triple and still not look overvalued. On our expectations it is now trading on a ridiculously low 3.5 times earnings multiple and 67% discount to tangible book. Since we last wrote there has been a change of both CEO and CFO in 2021 and 2020 respectively and a strategic move to scale up the business via growth in some new markets as well as gaining from some competitors leaving the market. This has led to an increase in the loan book to GBP 3,200m at an annualised growth rate of circa 15% over the last 18 months to June 2023. The loan book proportions by segment haven’t changed so much. Retail Finance and Real Estate are now even more important being 75% of the total book, each amounting to around GBP 1.2bn. As a reminder the Retail segment lends across various consumer products including furniture, electronics and sports season tickets growing at almost 30% in the first half of the year with over 85% in interest-free lending with much of the income paid by the retailer. Obviously growing at this rate, we are very cognisant of credit risk so it has been very positive to see provision rates not move substantially in a period of increasing economic difficulties for the consumer. Secure Trust via its V12 brand has been assisted in its growth due to some banks pulling out of the market, perhaps due to its fairly niche size and increased technology requirements. We believe their market share now to be in the low to mid-teens for new lending. The Real Estate segment’s loan book is now mainly lending to residential investment and development, and due to the interest rate environment, is growing much slower than Retail Finance at around 7% but continues to show very low impairments which is testament to its conservative lending with an average Loan-to-Value of around 56%. One negative has been the Vehicle finance segment (circa 15% of the book) which has not grown as much as the company would have hoped as the prime/Personal Consumer Plan offering on their new platform has taken longer to scale via dealers than they expected. We believe they do have some mitigating factors though, with the recent historically unusual behaviour in used car values due to new car supply issues as well as different dynamics in car values for electric versus traditional engine making it harder to price correctly in a new lending subsegment. The plan is to put all of their lending propositions on one platform by the end of year which should help them to gain more traction with their dealer channel to market. The Commercial Finance segment, circa 10% of the loan book, is mainly factored receivables helping smaller companies working capital situation and very short duration lending with typically very low write offs. Similar to Real Estate there has been limited loan book growth currently. Optically overall the revenue margin on its loan book has decreased in the last five years by around 230bp to around 5.8%. However, the company has continued to move up the credit quality scale in its market positioning which is not being fully shown in its results due to accounting standards requiring premeditative provisioning for the loan book leading to only 40bp of improvement to 1.4% in that time. Overall, this has led their return on average equity to fall from 13.1% in 2018 to, we expect, a not disastrous but unimpressive just over 10% for 2023. They target a substantially higher figure, around 15%, in the medium term. We expect the return to be close to 12% next year as we see the increasing benefit of scale pushing the cost to income ratio to close to 50%, the low end of its 50-55% target. Given the growth strategy, management are aware that the returns need to step up to fund this strategy and we would much prefer that its 25% dividend payout policy was changed until their returns are shown to sustainably finance the greater than 15% loan book growth targets, given their Core Equity Tier 1 capital ratio currently sits around 13%, close to their internal 12% minimum target, the regulatory minimum is lower at 9.6%. As it stands the company sits on a historic 7% dividend yield which we would expect to increase this year given the dividend policy. Secure Trust Bank continues to be a fairly niche lender which is underappreciated by the market. Over the last few years, it has become more prudent on its lending book which we believe will lead to more consistent profitability in the future. They have also invested in technology which should enable good quality lending growth in Retail and Vehicle Finance with increasing scale leading to higher group returns. It was also positive to see the CEO David McCreadie buying GBP 176k of shares in August at current levels. Putting the business on 9 times earnings and around tangible book for 2024 leads to upside of over 200% over the next 15 months. |
Posted at 09/9/2023 11:43 by red ninja Secure Bank Trust in the 5/9/23 FTMy dividends strategy continues to deliver Highly depressed markets have thrown up very attractive yields "A balanced portfolio — without overdiversifying — is something to aim for. I selected 16 stocks with a weighting to large caps, all offering a dividend yield of 5 per cent or more. As a “core” there was a three-unit holding in each of Aviva, Legal & General and M&G, all on yields of at least 8 per cent. Then five two-unit holdings — British American Tobacco, Phoenix, Primary Health Properties, Secure Trust and Taylor Wimpey — again juicy yields averaging about 7 per cent. This portfolio should deliver a near 8 per cent dividend yield overall. Even if a couple of holdings were to disappoint, the projected income should still be very satisfying. The first two need little introduction; PHP, despite its debt, should be well capable of at least maintaining dividend payments given its rent flow, effectively underwritten by the government. Niche lender Secure Trust has to be outstandingly cheap — I note that the chief executive has just made a notable purchase — and land banked and cash-rich Taylor Wimpey presents an excellent buying opportunity when we must be at, or near, the bottom of the housebuilding cycle." |
Posted at 18/8/2023 12:33 by red ninja In Shares Magazine this week :-Secure Trust Bank is cashing in helping consumers get what they want Despite its strengths this specialist lender remains deeply unloved and undervalued Thursday 17 Aug 2023 Author: Ian Conway Great Ideas Investors who are risk-averse and prefer to avoid small-cap stocks may want to stop reading here, but for those with a nose for value and an appetite for contrarianism we think there is a lot to like about specialist lender Secure Trust Bank (STB). To say the stock is unloved is an understatement, as one look at the share price performance over the last five years demonstrates. Secure Trust Bank provides retail finance and vehicle finance for consumers as well as property and commercial finance. Its retail finance arm arranges and administers finance and loans for well-known national brands and retail partners across the UK, helping shoppers buy the things they want. In the first half of this year, the bank grew its retail loan book by 12% or £614 million and increased its market share to 12.9% from 11.4% six months earlier. In vehicle finance its V12 ‘product hub’ allows dealers to buy, sell and finance used vehicles, while its Moneyway finance arm has hundreds of thousands of happy customers across the UK. Lending increased by 18% or £250 million in the first half as the used car market soared and the bank grew its dealer and broker relationships. The real estate finance business offers loans to experienced developers of residential and commercial schemes as well as professional landlords, and grew its loan book by 10% or £250 million in the first half, while commercial lending was flat as the bank made a strategic shift towards lower-yielding but lower-risk financing. On the whole, therefore, the bank increased its loan book in three of four of its large addressable markets while staying disciplined in terms of risk, and reported a net interest margin of 5.4%, which the high-street giants would kill for given they are expecting to report an average margin of just over 3% this year. Even though it took an impairment charge of £7.2 million for non-recoverable loans in the first half, which management says is unique and relates to a long-standing commercial debt, pre-tax profit of £16.5 million was almost flat implying underlying earnings grew by 15%. With no write-offs in the second half, profits are expected to increase ‘significantly So why does STB trade on 0.4 times 2023 book value, 3.6 times earnings and a dividend yield of 7.5% with the dividend four times covered? ‘The market is valuing the shares as though the company has serious balance sheet issues, which we do not agree with’, says Shore Capital. We can only concur. |
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