Secure Trust Bank Share Discussion Threads

[p1nkfish] 20/11/2024 23:04

STB is a bit player in this.

Granted they are small so won't be able to carry the impact like Lloyds and bigger players can but their exposure is also relatively small.

Would be useful to have some numbers to help define the potential problem.

[red ninja] 20/11/2024 22:08

Article in Times today states Moody’s putting the size of this scandal now at £30 billion. STB not mentioned in article.

Note, the size of the impact if any on STB still not known.

RNS from yesterday shows Farringdon capital has sold 1.5% of STB.

[pvb] 19/11/2024 14:45

Remember Equitable Life! :-|

[ih_407763] 18/11/2024 20:51

That’s not a given Red! The current judgement also potentially covers fixed commissions and not just undisclosed.
It’s a big unknown and we can only hope that common sense prevails with the final decisions.

[red ninja] 18/11/2024 12:46

OMVI

I believe you mean the Supreme Court will rule against compensation were it was within FCA guidelines.

[buffett4] 18/11/2024 12:42

I could not agree with you more OMVI- spot on.

[omvi] 18/11/2024 12:39

The whole industry had to stop issuing loans after the judgement. It’s not just STB. Honda wouldn’t allow people to pick up their cars for a week even on already agreed loans.

It’s just a huge unknown until the court of appeal judgement. I think it’s unfair to expect business to comply with FCA rules then tell them they owe compensation for something within the FCA guidelines. I can’t see how that’s appropriate and hope the court of appeal will rule against compensation where it was within FCA guidelines.

[red ninja] 17/11/2024 10:27

The Appeal court extended the problem to undisclosed commission.

Secure Trust Bank stopped motor finance for a period while they reworked their offering.

Thus that suggests that they may be on the hook for undisclosed commission in the
past although we cannot be completely sure of that as the company is not exactly forthcoming as to it's new liabilities.

Added later
Note, we won't really know for another 6 months or so if the Appeal Court ruling will stand or not.

[buffett4] 16/11/2024 17:26

Hi Supearich, I hope you are right in that the potential liability 'can only relate to a small(ish) % of those figures and NOT every transaction' - what is your rationale for concluding this though? I have worked in the car finance industry for the last 30 years and that is not the current generally accepted view in the industry, although we do indeed very hope it turns out that way.

[supearich] 16/11/2024 17:03

Any Shareholder in this already knows the % of the Business aligned to Motor Finance.
Any Shareholder in this also knows the performance of that segment of its Business (e.g. Profitability and Revenue per annum)... the figures are transparent enough.

Any potential liability relating to historical Motor Finance 'commission', if relevant, can only relate to a small(ish) % of those figures per annum and NOT every transaction and NOT every year.

Take a look at the publicly available Accounts for (say) the past 5 years.
Do some basic maths regarding actual/likely exposure... compare that to the Business 'losing' about 1/2 its Value ????!!!!!

Bargain Buy ????

[tomps2] 14/11/2024 15:08

Secure Trust Bank (STB) Capital Markets Event - November 2024

Secure Trust Bank management provides an overview of its Commercial Finance Business and its role in helping the business achieve its medium-term targets.

The Commercial Finance management team outline the product offering, the size of the market, the team’s track record, further growth opportunities, the recurring revenue benefits of the model, as well as their approach to structuring and risk management.

Watch the video here:

Or listen to the podcast here:

[digger18] 13/11/2024 21:38

This is interesting, published today by the FCA.
My main concern. Is the final judgement (Ie appeal accepted or not) and potential implications for “Fixed commission” to dealers. I guess it depends how transparent the documentation was, at the point of acceptance.

[p1nkfish] 13/11/2024 17:25

Might be limited in actions they can take until picture becomes clearer. The shutters come down to avoid any insider dealing allegations.

[pvb] 13/11/2024 17:15

mundungus 12 Nov '24 - 18:05 - 995 of 996

John Lee sold his holding based on issue talked to car financing loans and increase in loan collection issues. Parting comment in the IC interview he hoped they survive.

Um... Worrying.

And no sign of management buying shares.

[casholaa] 13/11/2024 07:38

"A live webcast of the presentation including Q&A will be held today at 14:00 pm for investors and analysts and will be available via our website at https://www.securetrustbank.com/ or on https://brrmedia.news/STB_CMD. This will be available for playback after the event. The Group will not provide an update on Vehicle Finance business at the event."

[mundungus] 12/11/2024 18:05

John Lee sold his holding based on issue talked to car financing loans and increase in loan collection issues. Parting comment in the IC interview he hoped they survive.

[casholaa] 12/11/2024 17:28

Big day tomorrow. GLA.

[p1nkfish] 09/11/2024 23:47

I would be shocked if there were no or poor records of credit transactions, commissions etc.

The whole thing is complex and although potentially very impactful I think some of the sell-off is "if you're going to panic, panic early".

[casholaa] 09/11/2024 20:01

I suspect it depends on the existence of records.

[p1nkfish] 09/11/2024 10:51

Would br a start if they defined the period over which there may be liability and the number of transactions over that period.

[casholaa] 09/11/2024 10:30

They need to provide some certainty. Also, my uneducated guess from googling, would be any commission paid plus interest from the date of the finance agreement at a commercial rate of interest.

[red ninja] 09/11/2024 03:30

Isn’t the IGIndex holding just punters buying through IGIndex.

However, with the impact of the Appeal court ruling on STB unknown and what the Supreme Court may rule unknown it is a gamble.

It may be a bargain or maybe Not.

I am not sure the trading statement will make things clearer either.

DYOR

[casholaa] 08/11/2024 18:22

FIL about halved and IG come flying in with about 3%. I'm guessing motor stuff and cut in base rate are negatives but IG see an upside?I have enough shares, so I opened a sb earlier.

[cfro] 08/11/2024 17:36

Now thats IG gone above 3%. Must be on behalf of their clients, but the question would be is it for a collective group of clients or just one big hitter?

Usually traders use a spread-betting company like IG for short term bets not longer term holdings which makes this announcement even more intriguing..