Secure Trust Bank Share Discussion Threads

[rcturner2] 21/10/2021 07:59

Thanks rimau

[rimau1] 21/10/2021 07:56

Contrast this with Arbuthnots update where they blamed the current chip shortage for a slow down in vehicle finance! STB continues to deliver and i agree share price action is underwhelming.
RCTurner - banks hold excess (internal) capital on their balance sheets to fund growth and can also tap the capita markets for liquidity as part of treasury management functions.

[rcturner2] 21/10/2021 07:40

Yes great update. I have a (probably) idiot question though. Since the loan book is much larger than the deposits how is STB plugging that gap? Where is the rest of the cash to loan out coming from?

[this_is_me] 21/10/2021 07:32

Everything is looking good and the share price performance remains a mystery.

David McCreadie, Chief Executive Officer:

"I am delighted with both our operational and financial performance during this period. The Group experienced improved trading activity during the third quarter and new business lending grew very strongly as a result. We have delivered growth in both consumer and business finance and are well positioned to continue to build on this momentum. The Group continues to trade in line with the revised guidance provided in the 12 July 2021 trading update. Our proven agility to navigate economic uncertainties while targeting attractive niche lending sectors provides further confidence in the future . "

[rimau1] 07/10/2021 12:37

Trading update this month should be a welcome catalyst here. I would also add to the Shore note that tangible book value should be anywhere between £1400-£1600 so significantly undervalued across all metrics with the prospect of both dividend and capital growth.

[tole] 07/10/2021 05:30

Market undervaluing Secure Trust Bank, says Shore CapitalShares in Secure Trust Bank (STB) are 'materially undervalued' and ignore the challenger bank's capital strength, says Shore Capital.Analyst Gary Greenwood retained his 'buy' recommendation on the stock and said the 'recent pull back [in the shares] created an attractive buying opportunity'. The shares closed down 5.5%, or 65p, at £11.20 yesterday.He noted better-than-expected half year performance but said the group 'remains cautious in its provision modelling with an assumed weighted average peak unemployment rate of 7.2% and a peak to trough fall in house prices of 5.1%.Consequently, the group ha a 'robust balance sheet' and a new dividend policy that will pay out 25% of earnings on an ongoing basis.'From a valuation perspective, the shares look materially undervalued to us,' he said. 'At [Tuesday's] closing price of £11.85 they were trading on a full year 2021 price/earnings ratio of less than 6x,' said Greenwood.'In our view, this is totally out of line with the group's medium-term return on equity target of 14-16% and also appears to be ignoring the group's robust provisioning and capital strength.'

[gc321] 04/9/2021 10:25

With the true value of this company being so much higher than the share price is reflecting, this must be on the radar as a takeover opportunity....

[basem1] 02/9/2021 09:34

I think they are just bringing the chart down to support here then onwards and upwards More buys than sells yesterday and again today.

[gc321] 26/8/2021 10:15

Ah right, thanks basem1

[basem1] 26/8/2021 09:58

No that's the record date Ex is always the day before Always

[gc321] 26/8/2021 09:45

Possibly a silly question. I take it that it takes a few days to appear or come off the share register, as according to the interims, the ex dividend date is tomorrow the 27th?

[theoldcodger] 26/8/2021 09:40

Yes, not logical at all, especially after a bit of a pull back in the share price recently, so with the company having released excellent results earlier this month, along with a reasonably confident outlook statement and a market maker offering stock at practically another's bid price, I used the opportunity to make a small top-up at 12.8875 - it seemed rude not to.

Regards,
TOC

[crazycoops] 26/8/2021 08:57

And so, entirely logical they are down 55p :-)

[basem1] 26/8/2021 08:34

Ex dividend today 20p per share

[lucky_lady] 16/8/2021 08:35

Have just topped up but it’s showing as a sell

[this_is_me] 13/8/2021 22:35

From:



Secure Trust Bank (LON:STB) – impaired to create value

This specialist banking outfit declared a record first half trading performance for the six months to end June.

The group’s statutory pre-tax profits rose by an impressive 502% to £30.7m and earnings leapt 564.3% from 21p to 139.5p per share.

All this was just by the half-way point.

Pedro Fonseca and Andrew Mitchell, analysts at Edison Investment Research, estimate pre-tax profits for the year of £47.9m against £20.1m previously, with earnings more than doubling from 85.2p to 211.9p per share and covering a 53p dividend.

They were impressed enough, at the group’s treatment of its impairment reversions in its motor finance and retail finance segments to raise their ‘fair value’ estimate to 2234p per share.

With the group’s shares trading at around the 1375p level, they look to be an attractive purchase ahead of its Q3 Trading Update due in October.

(Profile 12.04.21 at 1210p set a Target Price of 1500p)

[value_spotting] 13/8/2021 08:29

Check out my latest article on STB!

hxxps://eddielloydcom.wordpress.com/2021/08/13/holding-secure-trust-bank-plc-half-year-update/

It was not 5 weeks ago that I wrote my first piece on Secure Trust Bank (LSE:STB) when I concluded that this was one of the best value opportunities I had seen in 2021. Since then, the share price has progressed from £10.30 to £13.90, a 35% increase, and with half year results released last week, now seemed like the time to reassess.

Though the long-term bull case for STB remains unchanged, half year results were well ahead of my expectations and, following revisions to my model, I’ve updated my personal target price from £18 to £19.50.

[crazycoops] 11/8/2021 12:31

Oh, and for those interested in such things Edison have increased fair value price target to 2234p

[crazycoops] 11/8/2021 12:28

Edison have just published their upgraded forecast for 2021 to 211p EPS but in the same breath, they have downgraded 2022 EPS by 11% due to the anticipation of rising costs.

[ball deap] 11/8/2021 11:58

Thanks crazy

[gc321] 11/8/2021 09:38

Morning all, does anyone know what the zero trades are all about? Is it where the market makers are reporting a trade but not declaring the amount until later? It's the only share I've seen zero trades on. TIA

[crazycoops] 11/8/2021 09:30

Interim dividend of 20p per share, ex-divi late August, paid 27 September.

[ball deap] 11/8/2021 00:04

When will we see a div ?

[drdre] 09/8/2021 15:14

I agree with you crazycoops - I think its actually an opportunity before those upgrades are made as like you have articulated, you can see they have met FY estimates in the HY.

[crazycoops] 09/8/2021 12:14

Edison have been a trifle slow to upgrade their forecasts - perhaps the analyst is on holiday? As far as I can see their FY EPS forecasts have already been exceeded at the HY stage. There must be another broker that isn't on the Research Tree platform because consensus EPS was 139.5p for the FY (again, already achieved at the HY stage). My take is that significant upgrades should be forthcoming. What am I missing?