Secure Trust Bank Share Discussion Threads

[red ninja] 26/7/2024 15:35

Natwest results were good. Presumably STB and other banks are benefiting.

[spooky] 26/7/2024 15:26

Showing signs of breaking out technically this afternoon. Fundamentally cheap on all known information IMO.

[cordwainer] 22/7/2024 12:25

V12 Vehicle Finance has said it never had any discretionary commission arrangements, so presumably not exposed to compensation claims.
Apparently no such assurance of STB's other trading name in the sector Moneyway.
I guess this accounts for the 5 to 7% of vehicle arrangements referred to in an earlier post by 1tx in May.

[...]

[cfro] 20/7/2024 10:42

Hello parttime, it's been many a year. Pleased to see you're still around.


As to forecasts, i'm just focused on the managements medium term target of achieving £4bn net lending ambitions..

[parttime] 19/7/2024 17:08

Hello cfro, my fellow zulu hunter, it's been a while.


I note on Stocko that a couple of EPS upgrades have been made in the past week, not sure by who but we now have FY24 217.9p(+3.5p) and FY25 268p(+6.45p)

Does anyone have recent f'casts for FY26 to make up the trilogy?

[cfro] 19/7/2024 08:03

Assuming Labour achieve their plans and ambitions of building more houses, more infrastructure, roads, schools, prisons, drainage, sewage etc etc..

..Then think about that for just one moment - it will all need financing...

[p1nkfish] 16/7/2024 07:07

Summary is it's undervalued by a decent amount. Suggests should be trading closer to NAV that is expected to grow. Currently 0.41 price/NAV reducing towards 0.33 by 2026 estimate.

Even if it maintains the 0.41 price to NAV there is decent upside if the NAV expands as estimated.

Not bad at all and a chance of an acquisition approach imho but certainly not at todays ratios and price. A bargain imho.

[p1nkfish] 16/7/2024 06:46

Progressive initiate coverage.
Interims 14th August.

Progressive - "We initiate coverage on Secure Trust Bank (STB), a leading retail deposit-funded specialist bank operating in four core markets with substantial growth opportunities. STB’s ambitious and achievable medium-term targets aim to deliver significantly higher profitability combined with a lower-risk earnings stream. The key to much of this is STB’s grip on technology and the extent to which it has been embedded across all businesses and integrated with its business partners. STB has a 31 December financial year-end, and will announce 2024 interim results on 14 August."

[p1nkfish] 05/7/2024 18:36

& paid to wait.

[parttime] 05/7/2024 16:24

Thanks for posting that Dave. It seems possible we may have some earnings up grades to look forward to after the interims in a few weeks time....

''The outlook for the business remains positive and we note the loan book has already increased by a further 3.8% in Q1 FY24F vs. our full year forecast of 5%, which we will review at the interims on 14 August,''

[davebowler] 04/7/2024 13:27

Shore Capital July 24

Yesterday, Secure Trust Bank (‘STB’) hosted a Capital Markets Event that focused on its Real Estate Finance business, emphasising its position as a specialist relationship-led lender. The Real Estate Finance business was formed 10 years ago and has built a strong track record of growth. It is primarily focused on secured lending against residential property, with a smaller amount backed by commercial property. The majority of this is made to professional landlords to support investment, albeit the business also lends to property developers. Loans range in size from £2m to £45m and have a term of up to five years, are interest only (except for one) and either on fixed or floating rate. The loan book totalled £1.244bn at 31 December 2023 (38% of the Group total), having grown by 18% since 2020, despite the pandemic and rising interest rate and inflationary environment. To put this into context, the overall addressable market for private rented and social housing that is said to be worth £2.4trn, albeit not all this is lent against.





Management described the business’ unique selling points as being the expertise of its people, the tailored nature of its offering, the agility of its business model and consequently, the strength of relationships it has developed. The latter is reflected in a growing proportion of repeat lending and referrals made by existing customers to new ones. Competition is primarily from other specialist banks, with the larger banks mainly operating at the vanilla end of the market and smaller non-bank lenders typically taking on riskier assets. The underwriting model takes a traditional nonformulaic approach, with credit assessment backed by detailed cash flow analysis and with typical LTVs of up to 60-70%. All customers are met in person and properties are physically vetted where built (or sites and development plans reviewed where not). The Group has very little exposure to riskier sectors such as retail and none to city offices. There is a geographical bias towards London and the South-East as that is where most of the rental property resides and demand is strongest.

The outlook for the business remains positive and we note the loan book has already increased by a further 3.8% in Q1 FY24F vs. our full year forecast of 5%, which we will review at the interims on 14 August, noting risk to the upside. Management believes that the operating environment is improving given reduced inflationary pressure and a potential turn in the interest rates cycle, providing scope to grow faster in development finance, for example. We also note that there is a chronic shortage of housing supply in the UK with the main political parties all having plans to address this, which should further underpin growth potential. Overall, we believe that STB’s Real Estate Finance business remains well positioned to deliver continued profitable growth, which should help support the Group’s ambition of increasing loan book size to c.£4bn over time (vs. £3.3bn at 31 Dec 2023), while improving RoE into a target range of 14-16%, thus underpinning potential for a significant re-rating of the shares. HOUSE STOCK.

[davebowler] 04/7/2024 13:22

In case its been missed
Feb 24 Vox podcast hxxps://youtu.be/JDo4i9P_1KI

Mentioned at 52:40 Secure Trust Bank

[tomps2] 04/7/2024 08:33

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

Secure Trust Bank management provides an update on their Real Estate Finance business and how it will support the Group in achieving its medium-term financial targets.

Geoff Ray, Managing Director, Real Estate Finance, John Griffin, Regional Head, London & South East and Chris King, Head of Credit provide details of their strong track record and the strategic repositioning of the Real Estate Finance business to focus on lower risk residential investment loans, which represented 84% of the Real Estate Finance net lending book at the end of 2023.

Watch the video here:

Or listen to the podcast here:

[riverman77] 14/6/2024 10:35

Any bank tax would hurt the big 4, so if anything smaller players such as STB would benefit in competitive terms.

[p1nkfish] 14/6/2024 10:25

Until they get in.

All banks need do is pass it on to account holders or reduce savings rates to cover the tax.

[34adsaddsa] 14/6/2024 10:10

Probably some spillover from European banks. I was worried Labour might have some kind of bank tax but we've been spared that.

[p1nkfish] 14/6/2024 10:03

Volume low.

[tiswas] 14/6/2024 09:41

Hmm, quite a pullback from that spike. Nearly pressed the button to sell at 920p or so but trying not to trade so often and thought there might be bid rumours about to emerge.

More likely to top up than sell at these levels.

[34adsaddsa] 14/6/2024 09:22

I was pointing out where pvb could quickly find the information I was referring to.

[deanowls] 14/6/2024 05:08

That’s banking No? Why wouldn’t they show it in every facet of what they do?

[34adsaddsa] 13/6/2024 17:35

No?

STB show the NIMs in different segments of the business in their year end results presentation.

[pvb] 13/6/2024 16:02

"NIMs"?

Does STB have a large US property portfolio?

[34adsaddsa] 13/6/2024 15:54

The real estate NIMs look terrible: a continuous downward trend.

[p1nkfish] 12/6/2024 12:37

Glad to see the Capital Markets Day announcement for Real Estate finance division - 3rd July.

Get out there and bang a drum.