Secure Trust Bank Share Discussion Threads

[lucky_lady] 24/3/2022 11:10

I bought more this morning on excellent results. Defo timed that wrong 🤬🤬🤬

[miti 1000] 24/3/2022 09:47

Presentation starts at 10.00am.

hxxps://webcasting.brrmedia.co.uk/broadcast/61fbe0e449f7751d18890d21/623c3d460dd845230fdc5201

[this_is_me] 24/3/2022 08:57

Very impressive results. Looking good for rapid post pandemic progress.

[rik shaw] 24/3/2022 08:03

Yes hopefully now moving in the right directtion.

[rimau1] 24/3/2022 07:57

Rik, strip the impairment release out if eps, its worth about £1.80!!! Solid results, 2022 the operational leverage will kick in, that is the business case here. Get the CIR below 50% and grow the core loan book and this will be an excellent investment case.

[spooky] 24/3/2022 07:44

Management doing a great job.

[rik shaw] 24/3/2022 07:39

Annual financial results. EPS increased from 82.7p to 244.7p.

[mwj1959] 22/3/2022 09:19

Rising bond yields will be helping the sector. LLOY is up 20% from its recent lows.

[tole] 22/3/2022 06:51

Berenberg initiates on Secure Trust Bank with a 'buy'Berenberg has initiated coverage on Secure Trust Bank (STB) and believes the challenger bank is undervalued. Analyst Alexander Bowers initiated coverage with a 'buy' recommendation and target price of £18.20 on the stock, which closed up 7.7% at £13.25 on Monday.The analyst said it operates 'in a range of specialist lending markets in the UK, including real estate finance, SME asset-based lending, vehicle finance, and point-of-sale retail finance'. It also offers savings products to retail customers, including cash ISAs and fixed-term bonds.Bowers said 'growth opportunities are boosted by new product offerings' and despite being a 'relatively small player in the markets in which it operates', there is 'headroom for growth'.'Under the new chief executive, appointed in 2021, we believe the bank has strong growth prospects and is currently undervalued, trading at 0.7x book value,' said Bowers.He added that the target price offers 50% upside, which implies the stock trading at 1.1x book value.

[lucky_lady] 21/3/2022 21:43

Berenberg buy recommendation. Target price £18.20

[digger18] 21/3/2022 18:51

Presumably in anticipation of good results.

[this_is_me] 21/3/2022 18:42

Rapid bounce in the share price.

[km18] 11/3/2022 12:55

...from last year...

Secure Trust Bank issued a Q3 2021 trading update last week. Total new business lending increased by 20.2% in the quarter and 59.3% compared to Q3 2020, continuing the strong recovery and exceeding pre-pandemic levels of Q1 2020 by over 20%. Consumer Finance maintained the levels achieved in Q2 2021 with Vehicle Finance recording its largest ever month of new business and growing 15% in the quarter. The Group continues to trade in line with the revised guidance provided in the 12 July 2021 trading update. Net profit for FY21 should approach £40m, consensus has EPS in the 210p-220p range. Meanwhile valuation is very attractive, forward PE ratio of just 6.3, PS ratio 1.4. STB is a very cheaply valued small-cap financial, with decent near term growth outlook. Not a bad combination. BUY....

...from WealthOracleAM

[pvb] 11/3/2022 11:14

11 March 2022

Sale of Loan Portfolio

"Following a strategic review, the Board of Secure Trust Bank PLC ('STB' or 'Secure Trust Bank') has decided to exit the debt purchase market and announces that its subsidiary, Debt Managers (Services) Limited ('DMS'), has today agreed to sell its portfolio of loans ('Portfolio') to Intrum UK Finance Limited ('Intrum'), one of the UK's leading debt purchase companies."

[rcturner2] 07/3/2022 10:43

Below 1000p I might be interested again.

[miti 1000] 23/2/2022 16:40

rimau1 ,

Interesting news regarding Co-op which you suggested might want to buy STB previously as a bolt on...

hxxps://news.sky.com/story/co-operative-bank-hires-bankers-to-spearhead-renewed-bid-for-consolidation-12549471

[belgraviaboy] 14/1/2022 17:43

Under the radar, conservative and far too cheap....

[rimau1] 14/1/2022 09:40

Yes agree with all that Miti, good summary.

[miti 1000] 14/1/2022 09:00

This is me,

Worth bearing in mind that ARBB have now finally sold their stake in STB which was well over 30%.That has created a big overhang on the share price over the past 3 years,

Also STB is thinly traded and tightly held.

The new CEO is way more proactive in promoting who STB are, witness the 1st ever CMD in November. If the economy holds up , there is no reason why STB cannot double from current levels in 5 years. Its way too cheap and there's a 4-5% dividend whilst we wait.

[miti 1000] 14/1/2022 08:53

Yes, that's correct but its now backward looking. Going forward, impairment charges will normalise ie. will be higher than FY2021.

I'm hopeful the dividend will be much higher than forecast on 24th March results.

[miti 1000] 14/1/2022 08:20

rimau1,
I'm confused why you think impairment assumptions are lower ? They are in fact higher for FY2022, and as the business grows will surely be higher to keep pace with the 15% growth target. No bad thing anyhow but does keep a lid on FY2022 forecasts to some extent.

[rimau1] 14/1/2022 08:11

STB is very different to 5 years ago, I always use Tangible Book Value as a guide and we will get confirmation in March but is should be around £17-£18 so this is a realistic short term target IMO. Of course STB would make a noce bolt on for one of the mid tier challengers (Co-Op most likely) as all banks are trying to aggressively grow their loan books. 1.5x take out would be £25

[this_is_me] 14/1/2022 08:00

The share price reached £34 around 5 years ago. Any chance of it getting back to that level inside another 5 years?

[rimau1] 14/1/2022 07:17

The core loan book growth is excellent, STB has smashed Q4! With rising base rates, lower impairment assumptions and the post covid rebound STB is set fair to rerate. I will also top up at Time Finance before their update which is scheduled for next week as there is a nice read across IMO.