Secure Trust Bank Share Discussion Threads

[digger18] 21/11/2022 14:23

Email sent; I will post the reply.

[retsius] 21/11/2022 08:12

digger18
Let us know how you get on.
R.

[p1nkfish] 20/11/2022 18:02

Someone needs a sharp finger nail somewhere sensitive.
Not acceptable.
An email to CEO might help highlight their obvious failings.

[retsius] 20/11/2022 17:41

An immediate email would be my response.
R.

[digger18] 20/11/2022 17:18

I am a shareholder here, but I am disappointed with the company.
I tried to open an ISA account online and having completed the process, faced a statement as follows: “Thank you for your application. There are a few checks that need to be done and once these have been completed we will be in touch. Note that this can take up to five working days”
Two weeks later, I have heard nothing!
My wife also tried to open up a new Easy access savings account and she also received the same message. Again, ten days later, still nothing.
This is not good customer service and does not bode well. Why don’t they want to “receive”; money from customers!!

[p1nkfish] 08/11/2022 14:54

I think the fall is because STB is seen as a bet on the UK economy and UK consumer and it has a downer on it for upteen reasons. Won't go there as we all know what's happening.

The patient will be rewarded imho and be paid something to wait in the meantime too.
GLA. i have been adding, have no timescales and no particular target currently. It just looks overdone.

[cfro] 08/11/2022 13:53

Even if they cut the full year dividend the yield here would still be way above 7%.

With the all the various negatives to one side, there are still a few positives. Houses will likely carry on being sold even if volumes are down, hence mortgages still sold (again even if lower volumes), Loans and credit card lending likely to rise due to cost of living and struggling customers generally borrowing more (although that can lead to bad debts of course) and higher interest rates will massively help banks.

Just trying to make sense of this fall that's all..

[brucie5] 08/11/2022 12:07

Maybe unreliability of dividends in the past? Is MTRO any comparator?
Yes, it does now seem cheap, so in theory, that's the time to buy an income stock. You should get best of both worlds: high captured income + capital growth too come.

[cfro] 08/11/2022 12:00

With regards to some of the previous posts above, indeed why has the share price of this stock been hammered so much? You have to ask that question. Its been an almighty fall from its highs back in the summer.

Its not that they have warned on profits. Ok, so, the banking sector is down in general, the company is tightening and restricting lending (you can always argue whether that is shrewd or too little too late), bad debts are highly likely to rise (perhaps significantly), we are most likely about to enter a serious recession, yada yada yada...

But, hang on a minute, we know all that and hence STB is now priced on a forward PE of less than three so all the bad news should be more than priced in.

Its seems everyone has it in for the banks and banking sector but putting Credit Suisse aside, some major banks are in reality now reporting better results. Look at Deutsche bank with their Q3 results adding 1bn Euros to make 1.6bn Euros in profits and also Italy's Uni Credit reporting profits up 20%. So all is not no where near as bad as some are making out...

[brucie5] 07/11/2022 20:00

Thanks, very helpful in building a further picture.

[brucie5] 07/11/2022 12:42

Thanks Pinkfish. I guess at these levels and assuming there's nothing nasty that we're not seeing, patience is only likely to be rewarded.
Can you tell me more about the app?

[p1nkfish] 07/11/2022 11:13

Yes. Have been buying too on and off.
They have a track record of coping with less than ideal economic backdrops.
Interesting to see if the app gains traction too as a new string to the bow.

[brucie5] 07/11/2022 09:43

So Edison's most recent update refers us back to their August report in which fair value see as 2,407. In the meantime Stocko giving a div of c. 7.5% to be getting on with. What am I missing that the market is seeing. I thought rising interest rates were good for banks, so long as a diligent around their loan books... It's an income/recovery buy, surely?

[brucie5] 03/11/2022 09:08

Yes, I'm hoping STB will do well from this level, having bought a full position. Scores three value screens on Stocko, as well as a stonking 98 for value. Dividend looks to be about 9% - though perhaps someone can confirm? Small, challenger bank, should do well in rising interest rate environment, so long as their loan book is carefully managed.
But DYOR, obviously.

[retsius] 01/11/2022 11:00

At last, some action!

[jeff h] 29/10/2022 14:14

Edison leave their forecasts unchanged after the Q3 update:-

[p1nkfish] 29/10/2022 08:33

Find out soon but I would be surprised if STB have been excessively loose in lending criteria over the past couple of years. Peel Hunt should have a decent handle on it else they also look like right chumps.

[retsius] 29/10/2022 02:48

Apple53
Thanks for enlarging the discussion.
You sound as if you are very knowledgeable about banking.
We don’t know detailed figures yet, but I am pleased with Update, and it sounds as if Peel Hunt does too.(see above)

[apple53] 28/10/2022 19:27

I don't completely agree, retsuis. Bad lending decisions are mostly made during good times, made worse by banks competing for clients, whether on price or covenant.
The best time to lend is when others won't and you can name your price and terms. Good management was tightening lending conditions in 2019, not 2020. One interpretation is that STB missed good business in 2020, and then tried to catch up since, and may have pushed too hard. My.hope is that the 21-22 hasn't been too loose a period, and they have a small enough market share that they can cherry pick.

[jeff h] 28/10/2022 11:16

Secure Trust Bank is undervalued, says Peel Hunt
The valuation of Secure Trust Bank (STB) is ‘fundamentally too low’, according to Peel Hunt.

Analyst Robert Sage retained his ‘buy’ recommendation and target price of £14.70 on the stock, which closed 0.6% higher at 628p on Thursday.

Shares in the challenger bank are down more than 50% year-to-date, which Sage said is ‘overdone’.

‘Although demand remains buoyant, management has slowed lending growth in the third quarter in response to the deteriorating UK economic outlook,’ he said.

‘This had been previously flagged and we leave full year 2022 estimates unchanged.’

He said the group is trading at less than 0.4x tangible net asset value ‘in spite of its strong intrinsic profitability’, pointing to 12.5% annualised return on equity in the first half.

‘We expect the group will remain robustly profitable in future periods,’ said Sage. ‘Low single-digit price/earnings ratios – 3.4x for full year 2022 reducing to 2.9x for full year 2023 – appear to be anticipating significant earnings downgrades which are not materialising. We view the share price as fundamentally undervalued.’

[retsius] 28/10/2022 08:27

The word `prudent` and the phrase `please to announce` should bolster sentiment for the stock.

As I said, after the Half year Results:`what is the point of lending more if provisions for bad debt rise sharply?`

Looks as if they have tightened their criteria for lending quite considerably,and are reaping the benefits.
Excellent management.

NatWest Results : please learn a serious lesson from your smaller cousin.

[riverman77] 24/10/2022 16:41

Bought back in here at 640p. Ridiculously cheap for quality lender. Bought at a similar level post Covid and roughly doubled my money - expect to do the same again, although might need to wait a bit longer this time.