Secure Trust Bank (LSE:STB) reported continued growth in lending during the first quarter, with net lending from ongoing operations increasing 1.5% compared with the previous quarter and 6.6% year on year to reach £3.35bn.
The performance was supported by strength in the Retail Finance division, particularly within furniture financing, while Business Finance lending rose 3% over the quarter following the launch of the bank’s new bridging finance product.
Customer deposits declined by 10.3% during the period, largely reflecting the disposal of the Consumer Vehicle Finance operation. Despite this reduction, the bank said recently introduced product initiatives are performing positively and reaffirmed that it remains on course to meet its guidance targets for 2026.
Secure Trust Bank also confirmed preparations for a £10m share buyback programme as it continues to target annual net lending growth of approximately 10% alongside returns on equity above 16%.
The broader investment outlook remains constrained by weaker recent financial performance, including a net loss recorded in 2025 and historically inconsistent cash flow trends. Technical indicators also remain cautious, with the shares trading below major moving averages and negative MACD momentum signalling continued pressure.
However, valuation metrics provide some support, with the stock trading on a comparatively low price-to-earnings multiple and offering a modest dividend yield, factors that may appeal to investors if profitability improves.
More about Secure Trust Bank
Secure Trust Bank is a UK-based specialist retail banking group headquartered in Solihull with more than seven decades of operating history. The company focuses primarily on Business Finance and Retail Finance services, with the latter operating through its V12 brand. Its business model is supported by a diversified lending portfolio and a substantial customer deposit base.
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