Secure Trust Bank PLC (LSE:STB) has unveiled a strategic plan to exit new lending in its underperforming Vehicle Finance division, aiming to boost its Return on Average Equity (ROAE) and improve overall operational efficiency. The decision, part of a broader realignment of the bank’s priorities, is expected to significantly cut costs and enhance capital deployment across its higher-performing divisions.

The move will affect approximately 284 roles by 2030 and involve an estimated £5 million in restructuring expenses. Secure Trust Bank intends to redirect resources toward its Retail, Real Estate, and Commercial Finance units—areas with stronger margins and greater growth potential. With this shift, the bank is targeting £4 billion in net lending and a ROAE of 14–16%, positioning itself for long-term value creation.

While some financial pressures remain, particularly in cash flow, recent technical indicators suggest bullish momentum for the stock. Insider activity and the positive strategic direction contribute to a favorable market outlook, supported by an attractive valuation profile.

About Secure Trust Bank

With a heritage spanning over 70 years, Secure Trust Bank PLC is a UK-based retail bank headquartered in Solihull, West Midlands. The institution specializes in Business Finance through its Real Estate and Commercial Finance arms, as well as Consumer Finance via its Retail Finance division. The bank continues to evolve its model to support sustainable profitability and shareholder returns.

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