Secure Trust Bank Share Discussion Threads

[topvest] 13/8/2023 11:50

Yes, well done. Seems to have bottomed out for now. £18 of NAV for £6 was, and is, very good value. No interest in real assets at the moment, just the Maginificent 7!
Unfortunately, my purchase price was c£18 so an unbelievably poor performance despite the business growing a little. Banks are so cheap. Worth topping up at some point, but I'm holding off until we get a global recession which is a c70% probability, despite markets hoping otherwise, based on the yield curve inversion.

[masurenguy] 12/8/2023 13:15

The Mail on Sunday

Shares have halved in a year, but that is a “poor reflection” of its prospects. The bank is well diversified, operating across professional property, motor and business-invoice financing. It also helps businesses to offer credit to consumers, notably supplying “all the Premier League clubs with finance so they can offer season ticket deals to fans”. Loans are funded via deposits, which grew by more than £2.5bn in the first quarter. The 7.5% yield is an added attraction. 556p

No position.

[t-trader] 11/8/2023 17:59

Nice surprise today, only bought in Monday at 5.73p

Nice to get my timing right for once.

[1tx] 11/8/2023 17:10

STB has been trading at a multiple of present price for most of the period since it was split from Arbuthnot Latham.

[p1nkfish] 11/8/2023 13:23

Lovely break though 600p that was the barrier to the daily trend change, a weekly close at > 646.5 looks like a trend change on the weekly too. Next is current 835.5 for the monthly.

The weekly change, if it sticks by end of today, has happened more quickly than I expected.

[indalo] 11/8/2023 13:15

Looks extremely cheap when compared with OSB and others. What I like here is that the divi while decent at ~8% is covered 3x allowing for reinvestment in the balance sheet to support growing scale. Furthermore the market opp is huge and STB is small leaving a lot of headroom to grow into. If they can double in size and grow the divi this could become a 20-25% yielded if bought at these levels, not to mention the share price upside when the market catches on - very low volumes traded suggesting it’s widely ignored.

[riverman77] 11/8/2023 12:45

Looks like someone's finally spotted the value here, despite the MASSIVE hit to earnings in the last results.

[cfro] 10/8/2023 07:31

Cluster director buying.

[jeff h] 09/8/2023 15:56

Sounds good:-

"...Analysts were impressed with the results, with Shore Capital expects predicting upgrades to profit in 2024 and 2025 “given the flow through to future income from better than expected loan book growth”.

[deanowls] 09/8/2023 12:24

7.2m tho, was it not asset backed?

[buffett4] 09/8/2023 12:19

I see the results as positive. The 'one off' c£7 million bad debt in the corporate division clearly reduced profits significantly in the 6 month period however it was pleasing to see the portfolio reach a record £3.2 billion which is the driver for income in future periods. The board seem confident that they can grow profitability in the second half which if achieved will mean a very respectable full year result. This is a 'forever' hold for me, it will be interesting to look back and where they are in 10 years time. They have the banking licence (therefore access to funds), IT systems, Risk Discipline and team to scale the business and the markets in which they operate are huge so if they can execute I think the business has significant potential.

[1tx] 09/8/2023 11:33

It might have been prudent to have in part provisioned for this "one off" loss in prior periods if it was expected!We did have a one off profit from the sale of a business in the the same period last year so perhaps it balances.However the figures & prospects seem to show the business is undervalued.I note that in spite of this loss & the payment of the final dividend which was accounted for in the reported period NAV increased further.

[checkers2] 09/8/2023 11:31

Fag packet calc - for every one pound here invested you get

* 3pounds of tangible assets
* around 36% return on equity on the pound (3 x 12%)
* you get 25p of earnings
* div of around 8p
*balanced loans /deposits of roughly £30

Admittedly not the most exciting of shares to own...yawn...but not a bad place to invest.

[retsius] 09/8/2023 10:16

riverman 77

Filtering me seems a tad harsh, only entering into a debate on results, not personal issues.
R.

[riverman77] 09/8/2023 09:29

The key valuation metric for banks is the book value - profits in this sector are volatile and will move around from year to year. No offence, but I can see you have minimal knowledge in this area and can't be bothered explaining any further so I've added you to the filter list.

[retsius] 09/8/2023 09:06

riverman77

A near 30% hit on interim profit is not significant?

Please.
R.

[tomps2] 09/8/2023 08:53

Secure Trust Bank (STB) Interim results 2023 overview - August 2023

David McCreadie, CEO gives an overview of Secure Trust Bank’s 2023 Interim results and an outlook for the rest of the year.

Watch the video here:

Or listen to the podcast here:

[riverman77] 09/8/2023 08:51

A bit of an exaggeration to call it a MASSIVE hit - certainly nothing like as bad as what the share price is reflecting. Put it in perspective - it's effectively a couple of % hit to NAV while share price is on a more than 60% discount to NAV.

[riverman77] 09/8/2023 08:49

A bit of an exaggeration to call it a MASSIVE hit - certainly nothing like as bad as what the share price is reflecting.

[p1nkfish] 09/8/2023 08:38

It takes time, not a fast turn here. H2 increased profitability, along with the better LTV that is targeted, will wake the market up. The £7.2M reads and sounds like a real one-off. It's now out in the open, in the bin.

[dave444] 09/8/2023 08:31

The results are good and this should definitely climb back up but sadly you get a few that don't understand figures

[retsius] 09/8/2023 08:18

Not an accountant, so superficial views of results.

Very good figures except for that one MASSIVE hit taken in Consumer Finance.
Lessons learned: but taken out on previous CEO`s watch(?)
I have a feeling this has been in the background, been known for a while, and has been suppressing the share price

Muted share price response this AM but we shall see how it performs during the day.

R.

[p1nkfish] 09/8/2023 07:41

AppToPay mentioned 5 times and no IT integration necessary at adoptees - very good.
Savings App due.
Reads well overall and under control of a firm hand.

Money has already been spent and benefits about to start to be reaped Inc improved margins. Small and nimble has major growth benefits.

"Since 2018, the Group has spent £16.4 million on strategic IT projects and has a modern, scalable environment to support our growth ambitions. Our technology platform will: unlock our ability to simplify the Group through digitalisation; allow us to deliver enhanced customer experiences; and to leverage our networks through ease of integration with third parties."