Business
Interim Results for the six months to 30 June 2020
Interim Results for the six months to 30 June 2020.
About this update from Secure Trust Bank Plc
[{"type":"text","content":"\n \n \n RNS Number : 2950V\n Secure Trust Bank PLC\n 06 August 2020\n \n \n \n PRESS RELEASE\n \n Thursday 6 August 2020\n \n \n LEI: 213800CXIBLC2TMIGI76\n \n \n For immediate release\n \n \n \n \n \n SECURE TRUST BANK PLC\n \n \n \n \n \n Interim Results for the six months to 30 June 2020\n \n \n \n \n \n This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.\n \n \n \n \n \n Resilience demonstrated by response to COVID-19 pandemic\n \n \n \n \n Secure Trust Bank PLC (\"STB\", the \"Bank\" or the \"Group\") is pleased to announce a profit of £5.1 million for the six months to 30 June 2020 (30 June 2019: £18.1 million), despite the unprecedented economic backdrop.\n \n Following a strong first quarter of 2020, the result for the first half was impacted by increased impairment charges, mostly driven by forward looking estimates which take account of the potential deterioration of the UK economy that the pandemic may cause. In addition, the accounting treatment of payment holidays has had a material impact on the profit for the first half.\n \n The Group adapted its operations quickly and successfully to maintain excellent customer service and ensure the welfare of our employees. Customer numbers have increased by 15% year-on-year. As expected, the short duration of the Group's lending portfolios has resulted in the balance sheet contracting, with a consequential improvement in capital ratios. The liquidity position remains very healthy.\n \n There are some encouraging signs of customer demand increasing in the third quarter, in particular in Motor Finance and V12 Retail Finance. However, as a result of continuing uncertainty regarding the extent of the pandemic and its impact on the economy, forward guidance continues to be suspended and no interim dividend is proposed.\n \n \n FINANCIAL HIGHLIGHTS\n \n \n · \n Statutory profit before tax down 71.8% to £5.1m (2019: £18.1m) \n \n \n · \n Adjusted profit before tax down 69.1% to £5.8m (2019: £18.8m)\n \n \n · \n Operating income £84.9m (2019: £81.4m) up 4.3%\n \n \n · \n Costs reduced by 1.8% to £44.7m (2019: £45.5m)\n \n \n · \n Impact of the pandemic has increased cost of risk to 2.9% (FY 2019: 1.4%)\n \n \n · \n One-off impact of payment holidays reduced profits by £3.6m...