Secure Trust Bank Share Discussion Threads

[myreaction] 05/7/2016 12:26

I have an account with STB and have found them to be reasonably good at what they do. However I received a letter from them last week telling me that my account will be closed in a couple of months and they told me to make alternative arrangements. Strange.

[shwetal] 05/7/2016 12:17

Apart from going Ex Div., the share price is continuously falling in the absence of any RNS.Any clue anyone !!!

[shwetal] 01/7/2016 09:47

Apart from going Ex Div., the so is continuously falling in the absence of any RNS.Any clue anyone !!!

[deadly] 23/6/2016 09:26

This has a forecast profits growth of over 30% for the next 2 years and is paying a whopping divi next week yet is out of favour and has dropped heavily recently.
Can't see any obvious reason for this.

[skyship] 01/5/2016 06:40

Thomas - thnx for that. Easier of course to go direct to Edison - free registration if not already done so:

[thomasthetank1] 27/4/2016 14:22

Read Edison's note on SECURE TRUST BANK, out this morning, by visiting hxxps://www.research-tree.com/company/GB00B6TKHP66
"Secure Trust Bank is an established ‘challenger217; with a record of organic profitable growth. The Everyday Loans Group sale provides substantial regulatory capital for organic and potentially inorganic growth. The move into mortgages will further diversify lending. Despite a record of rapid loan book expansion, an ROE/COE valuation model suggests the market is reluctant to make full allowance for profitable employment of the surplus ..."

[topvest] 04/12/2015 08:34

Very interesting move today. On balance I would say it is very positive indeed at this point in the cycle.

[henryatkin] 16/4/2015 07:07

Ex Dividend today I believe.

[future financier] 19/3/2015 11:48

Stunning results today.

Interesting thing is the increase in customer balances of 59%. These have doubled since December 2012 (quadrupled since 2011) - with over half of this increase coming in H2 2014 when STB added £174.7m of advances. In other words there should be a big increase in profit when these contribute fully to the results for the period.

STB still has a very high Core Tier 1 ratio (23%) - so expect it to continue to pile on the assets for the foreseeable future - and this will lead to an accelerating rate of profit growth.

For me this is THE quality player amongst the challenger banks - although when Shawbrook floats next month there will be a worthy competitor for the top slot.

[davebowler] 09/3/2015 10:25

hxxp://www.insidermedia.com/insider/north-west/135112-?utm_source=northwest_newsletter&utm_medium=deals_article&utm_campaign=northwest_news_tracker

[worsleybird] 24/7/2014 07:22

Had my eye on this for a while and bought in the other day after the interims. Is a Shares Mag mention from some time ago. Like the figures. A lot of good quality companies on silly SPs at the moment as major ii's seem to be favouring FTSE100 stocks which on the whole have nowhere near the growth prospects of the good AIM/small caps.

[mikeja] 22/7/2014 07:18

Brilliant interims from STB with underlying eps up 48%.Looks like 2014 eps could be around 2015 estimates at 160p with the effects of rights issue raising lifting 2015 eps to around 250p.Note ROE at 39.8%.If they can get that sort of return on the new money eps will be considerably higher.In any case a p/e of 10 for a company growing at this rate is ridiculous.

[mikeja] 21/6/2014 06:09

The recent fund raising is likely to have a big bang on future eps given the co's expectation that it can earn 30% ROE.2015 eps estimates currently run around 160p a share,the issue could raise that to 220p allowing for higher no of shares

[cnx] 04/10/2013 12:46

Thanks Papy

yours would be new to me and at 71 years , I think i'll take the simpler option and gradually increase the arbb holding and enjoy the dividends

[papy02] 04/10/2013 09:49

cnx
any thoughts on how to really benefit from this anomaly in realistic practical way?

Clearly hold ARBB not STB for your LTBH position (as you are already).

Beyond that, you could increase your position size in ARBB beyond your normal position-size limit, and offset the additional risk with a short-position in the equivalent amount of STB.

This arbitrage component needs to be kept modest though, as "markets can be irrational longer than you can remain solvent". You are betting on the anomaly reducing, and that may take a long/unpredictable time. I would close when it reaches a ratio of .75 or thereabouts.

In my case I have no investment view on ARBB or STB, so my long and short positions balance (are equivalent to the same number of STB shares, so a "flat" position).

I hold ARBB long in a broker account (Selftrade in my case), and hold the STB short as a spreadbet (Spreadex, Mar 2014 future, which I will "roll" before it expires if I haven't closed the positions by then). I opened the positions in mid-July and am roughly flat (£50 up!) so far.

Don't know if this meets your "realistic practical way" requirement. If anyone has other ideas I am all ears.

[cnx] 04/10/2013 03:02

at close on 3 oct,

arbb owns 70.7% of stb with a market cap gbp349million ,so
70.7% x 349 is gbp247 million

arbb closed at gbp9.07 with market cap of gbp135million

any thoughts on how to really benefit from this anomaly in realistic practical way?

long term holder of arbb

[papy02] 18/7/2013 21:02

mikeja, thanks, good points. Only a smallish position for me and I won't be waiting for the full discount to unwind.

[mikeja] 18/7/2013 20:26

Hmm,I wish you the best of luck but STB is a very illiquid market with almost all of the shares owned either by ARBB or institutions,could get squeezy.

[papy02] 18/7/2013 15:20

mikeja, I've gone short STB for double the £ amount of my long ARBB position-value.

So eg long position-value £1k ARBB (which punches double it's weight in terms of STB content), and short position-value £2k STB.

(The exact ratio I used was 1.97)

[mikeja] 18/7/2013 15:07

Papy,surely you mean you have gone short half the number of STB,as they are twice the price of ARBB?