Secure Trust Bank Share Discussion Threads

[p1nkfish] 10/7/2023 08:42

18,713,089 shares, 66.6% held by those with more than 5%.
If it was down to the 3% level that would be closer to 70%+, no surprise if 75%.
Therefore only 6.25M shares are with holders holding <5% each.

Relative low volume sales and churn are pushing this down in absence of buying interest.

The last report mentions shareholders 70 times, more than some.

Dyor & GLA.

[retsius] 10/7/2023 08:12

1tx

Brilliant summary of the present malaise with the share price

They have forgotten about their shareholders, and this has never been addressed by any on the Board, almost oblivious that they are a PLC.
R.

[apple53] 10/7/2023 04:45

Presumably some fear stb has same problem as OSB. I don't have time to research this. If anyone has time to write to IR? If not, I may do later in the week.

[p1nkfish] 09/7/2023 17:25

None of the large holders have crossed a % boundary from what I see currently.

Volumes have not been massively high.

TBD

[buffett4] 09/7/2023 16:01

I think there is some general negative sentiment to STB and indeed Banks in general currently however the long term value of the business will depend on its performance. My money is on them performing over the next 10 years and therefore in a decade I think they will be worth considerably more than they are now. Short term as we know with markets anything can happen but I think those that have the temperament to ignore the short term fluctuations will hopefully be well rewarded. I could be wrong of course about the performance of the business and therefore the share price, things can go wrong with lending very quickly but STB seem cautious so I think they will do well over time.

[1tx] 09/7/2023 14:51

Unfortunately there is a "problem" with STB which I have mentioned before which means that the share price is likely to continue in an ever downward trend.It is quite simple almost nobody is interested in buying the shares.

When STB was split out of Arbuthnot Latham (ARBB) the very canny Sir Henry Angest the controlling shareholder in ARBB managed to sell its shares to institutional investors at prices up to around £19 sadly perhaps the company did not live up to expectations & in addition interest in investing in smaller newcomer banks also declined.The net result is that the original investors have taken a cold bath.

Whilst STB is a very well managed business & is profitable and has a credible business plan.It has failed to build any rapport with its shareholder base & realise that it now has one third the market value it original had;to maintain its value it has to attract private investors to replace original institutions.The management seems quite happy to manage this business to benefit themselves & its employees forgetting that shareholders who put up the original capital now have an investment worth about a third of the money originally invested....

[p1nkfish] 07/7/2023 18:00

Zooming out, we could revisit about 524p but hard to imagine and harder to imagine it going lower but it could.

524p low was week towards end of July 2020 and close to a 3 year round trip.
20 wk EMA has been in a downtrend since end of June 2016.
The round trip involved a bounce back up to the 20 wk ema but no convincing break through it.

Interesting, will it flatline and if so for how long?
Little to no positive energy at the moment.

[p1nkfish] 07/7/2023 16:56

Chart looks sick, no idea why a seller now. 1 month from results.

[brad_k] 07/7/2023 15:26

Difficult to understand the price capitulation given the majority of trades are clearly buys. If this is a SETS share I thought that implied no Market Maker involvement, so what is driving the price down?

[retsius] 07/7/2023 15:02

The chart is horrific.
R.

[catabrit] 07/7/2023 15:00

Feels like we’re getting a bit of capitulation here.

[brianblu] 14/6/2023 12:39

Still poor I was in Stb a few years ago wasn’t as bad

[brianblu] 14/6/2023 12:00

Terrible spread here puts investors off

[asagi] 30/5/2023 11:45

is it just me or has the spread narrowed significantly here? London Stock Exchange website now says bid:offer is 628p:630p.

Asagi (long STB)

[retsius] 25/5/2023 09:47

500 shares bought and the value of the company goes up 3.6%
You couldn`t make it up.

[linton5] 22/5/2023 14:13

Seller just keeps drip feeding away here 🤔🦊

[buffett4] 18/5/2023 17:49

Yes quite correct. The last tranche of subordinated debt of £50 million which as I understand it they paid off from the new tranche of £90 million was at a rate of 6.75%. So the rate has increased significantly but then we are in a higher rate environment anyway with Banks hardly being flavour of the month. The increase in rate matters little to their overall blended cost of funds because the vast majority of which comes from deposits and shareholders equity. At the last account there were around £2.5 billion deposits and over £300 million shareholders equity. Really pleased with today's trading update, disciplined lending and steady growth, excellent.

[1tx] 18/5/2023 15:43

Subordinated debt is a type of debt mainly issued by banks and should not be confused with normal bank deposits or bonds.It ranks for repayment after all other creditors except shares and forms part of regulatory capital,it is therefore considered high risk.STB finances its loans via bonds (term deposits) issued in the main to private individuals which usually have a duration of one to four years.95% of these bonds are of a size covered by Financial Services guarantees.If you go onto STB website you can see the rates being offered.Their rates are usually competitive upto 4.7% seems to be offered for 3 years.

[deanowls] 18/5/2023 14:15

You wish 😂

[archy147] 18/5/2023 13:04

Just bought another 395 @ 330 as the MMS kindly obliged my last request.

I didn't realise they read this board, thank you :)

[buffett4] 18/5/2023 12:31

Given the total portfolio is now around £3 billion, each 0.1% bad debt charge costs £3 million. Historically their bad debt charge has been around 1.5% per annum which if maintained would represent a cost of around £45 million, which would be perfectly acceptable in that it should still likely leave healthy profits. The high(ish) rate for the subordinated loan does indicate that the market is pricing in some risk, which is fair enough I suppose. I have an average buy price of £7.11 - there are 18.7 million shares in issue so I've bought in at a market cap of £133 million. Whilst it isn't without risk obviously, the value does seem to be underpinned by the shareholders funds in the balance sheet which were in excess of £300 million at the last accounts. I had a look at some other lenders banks, S&U sell at around £100 million over their shareholders funds while the others I looked at like Paragon seem to sell at a slight discount to their shareholders funds but no where near the discount offered by STB's current price in percentage terms. I could be wrong of course and this is not without risk however I do think on a risk/reward basis over the longer term that this offers good value currently. Hope so anyway.

[archy147] 18/5/2023 12:25

Agreed, the 633s are buys as that's what I'm currently being offered to buy more.

My buy of 395 shares @ 630p is also showing up as a sell.

[linton5] 18/5/2023 11:58

They 633s are buys usual @#@&@&@*