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: |
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. |
Might be limited in actions they can take until picture becomes clearer. The shutters come down to avoid any insider dealing allegations. |
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. |
"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." |
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. |
Big day tomorrow. GLA. |
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". |
I suspect it depends on the existence of records. |
Would br a start if they defined the period over which there may be liability and the number of transactions over that period. |
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. |
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 |
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. |
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.. |
Rate cut expected today. |
Depends what they say in their trading statement due on 13th Nov. I think the market has now priced in the court judgement. |
What are the odds of seeing 400p within the next 3 weeks? |
I use research tree |
How do you see broker notes? |
Broker note from the company broker Progressive out today.
Standard rose tinted drivel. But may be responsible for a rise today. |
I have seen some confusion in the press about the current situation but I think this article sets it out correctly so thank you for sharing. |
https://oilprice.com/Finance/the-Markets/Secret-Commissions-Trigger-Potential-Market-Meltdown-for-UK-Car-Lenders.html |
 This is an extract from Shore's note published yesterday;
Valuation and recommendation: STB’s shares have dropped 29% since the Court of Appeal’s decision on commission disclosure requirements for motor finance lenders was revealed last Friday. As a result, the stock is now trading on an FY24F P/TNAV of just 0.3x versus management’s medium-term guidance for delivering an adjusted RoE of 14-16% (assumed to occur once the loan book reaches a target £4bn level, which we expect to be achieved around the end of FY25F). If this can be delivered, then we believe the stock has very significant re-rating potential. However, in the near-term, the investment case is likely to be overshadowed by the ongoing uncertainty in the motor finance industry caused by the Court of Appeal’s recent decisions. We have reduced our fair value to 1,650p (from 1,750p), to reflect our forecast downgrades. This equates to a P/NAV of c.0.9x and implies almost 200% upside. However, this does not current include any potential legacy redress impact from the ongoing issues in the motor finance industry, which are currently too uncertain to quantify with any degree of confidence but could be significant. |
cfro - I think the reality with these judgements is that the cases that are put forward for consideration include the most extreme that have been identified where the documentation is complete and (most likely) also poorly worded.
To have a situation where the buyer has to take out another loan to cover the commission for the dealer is pretty disgraceful.
As ever, the worst actors then bring the rest of a sector into the firing line.
Given the dysfunction in the asset finance market, where a number of lenders have now stepped back, this should focus the minds of the regulators (and government) to quickly find a workable solution. One aspect is also how the regulator will assess the solvency of lenders given the level of uncertainty and whether they have sufficient capital to offer new business. Likely that those that are left will now aim for higher margins. |
Register for real-time alerts, custom portfolio, and market movers
Hot Features
Premium
