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STB Secure Trust Bank Plc

6.00 (0.92%)
01 Dec 2023 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Stock Type
Secure Trust Bank Plc STB London Ordinary Share
  Price Change Price Change % Share Price Last Trade
6.00 0.92% 660.00 16:35:29
Open Price Low Price High Price Close Price Previous Close
656.00 656.00 668.00 660.00 654.00
more quote information »
Industry Sector

Secure Trust Bank STB Dividends History

Announcement Date Type Currency Dividend Amount Ex Date Record Date Payment Date

Top Dividend Posts

Top Posts
Posted at 13/11/2023 20:14 by kenmitch
Agree Brucie about SCSW performance having deteriorated markedly and Stocko Small Company analysis is way superior imo.

BUT GOOD looks as though it could well be a rare SCSW winner. Like you I didn’t buy immediately after their tip as the share was marked up too much, but GOOD has been quite volatile and I was able to buy at 203p on a dip from 236p and averaged up at 225p on a dip from 260p and also had a final average up today at 284p.

There’s a chance that after such a fast further rise the share could again correct to give a lower buy price opportunity. Don’t want to bully you or anyone else in to buying GOOD but IF Investec figures are to be believed it’s still cheap!

No more from me on GOOD here as it’s off topic and could look like ramping it. I’m just as keen on STB despite my general reluctance to buy any bank, but it too just looks far too cheap.

We’re awash with BARG buy opportunities. e.g good news from way oversold 10% dividend payer PHNX today. And what about all those Investment Trust REITS on huge discounts and paying dividends up to 10% a year.
Posted at 13/11/2023 11:54 by kenmitch
Hi Brucie5

I hope you followed up the suggestion to have a good look at Good Energy? News today has sent the share price well up again so far today. If Good is half as good as YU and TEP it will be a big winner.

STB also looking good. Very optimistic that can continue.
Posted at 10/11/2023 13:10 by kenmitch

Fwiw STB looks a stunning bargain. Though I take Broker price targets with a pinch of salt, Shore Capital reckoning the share could triple could prove correct in time. Current PE is 3 so a tripling share price would still mean a lowly 9 PE.

STB gets 98 for value on Stockopedia and the share is down about 75% from peak. It looks way oversold. And scope to increase the 8.7% dividend in time too.

Gets 99 on Stockopedia.

I bought recently at £6 and added more today a bit higher. And today it’s a rare gainer in a sea of red.

BTW….another very cheap looking share is GOOD which like STB is up even today. SCSW hasn’t had many successes for a while but GOOD highlighted at 176p in their October update could well prove an exception. IF earnings forecasts are to be believed upside looks very big! 18.6 eps and 9 PE to 12/24 and 33.2p and 5.2 PE to 12/25 and 69.2p and 2.5 PE to 12/26. I bought higher at a bit over £2 and added today.
Posted at 03/11/2023 06:38 by wallywoo
After the disaster at Metro Bank, fear is ruling these smaller cap banking stocks. Fear is the most irrational of emotions, hence the share price here. The poor results from barc, Natwest, Stan, etc just add to the poor sector sentiment.

The event on the 8th November hopefully will provide some balance against that fear as the news and actions from OSB did yesterday. I think and many pundits think stb is unfairly cheap currently. Let's hope we are right!!

In the meantime, stb shareholders will need to hold their nerves, or of course give in to fear. I doubt that there's any real issues with STB but we will have to wait. I bgt in yesterday, risky bottom fishing bet for me!!
Posted at 18/10/2023 11:55 by tomps2
Secure Trust Bank (STB) Capital Markets Day

Wednesday, 8 November, 11:00am

The Capital Markets event will include a deep dive into the Retail Finance division and further detail on the Group’s path to delivery of its medium-term financial targets. Speakers at the event will include David McCreadie, CEO, Rachel Lawrence, CFO, Nick Davies MD of Retail Finance and Andy Phillips, Commercial Director of Retail Finance.

To register for the event in person or virtually, please contact
Posted at 14/10/2023 08:23 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 10:43 by red ninja
Secure Bank Trust in the 5/9/23 FT

My 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 11:33 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’ thanks to loan book growth and a low cost-to-income ratio.

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.
Posted at 26/4/2023 11:03 by 1tx
As far as I can see STB is turning itself into a mini Close Bros concentrating on Car & Vehicle finance,private & business & larger item consumer credit eg ebikes & furniture via its V12 Finance Company and secured business lending.The businesses being sold or run off are the mortgage and loan books which if memory is correct were acquired cheaply post the banking crisis when STB was owned by Arbuthnot Banking ARBB.

On reflection I suspect STB had little alternative but to increase dividend cover due to the requirement to have additional capital cover.I note that its former owner Arbuthnot raised additional capital the other day unlike STB it has a controlling shareholder,Sir Henry Angest,who was able to put in nearly 60% of the new capital.

The problem for STB is that when it was spun out of what is now Arbuthnot & in subsequent share sales by them the shares were all bought by institutional buyers mainly at prices between £15 & £20+.All these buyers are out of pocket and it has not attracted private investors to any degree partly because the sector is out of favour but partly also because STB has a management who don't really have a major shareholding in the business & perhaps do not consider the interests of shareholders.But presently at around £120m or so market value it is too small to attract further institutional interest & does not attract private investors either.Hence its ever falling share price....
Posted at 29/3/2023 11:03 by 1tx
Whilst recent market sentiment to banks & consumer lenders has not helped matters.The major reason for the fall in STB share price was the dismal results for the first half of the 22 financial year announced in early August.The decision to have a four times covered dividend did not help matters either.

Virtually everybody who has held STB for any period longer than a few months has lost money and those institutions who bought shares when it was floated out of Arbuthnot ARBB & in subsequent placings of ARBB's remaining holdings have made a massive loss.Most still hold the stock they bought,it is not easy to sell in large amounts unless there is a willing buyer.STB may be a bit undervalued but there is in my opinion a problem with the company.STB is not "connected" to its shareholders with smallcap companies you need directors who have a meaningful interest in the company & are interested in maintaining & improving value for shareholders.STB is run by managers for managers.

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