Business
Sale of Consumer Vehicle Finance Business
Secure Trust Bank PLC has agreed to sell its Consumer Vehicle Finance business to funds managed by LCM Partners for an estimated consideration of £458.6 million, a premium to the portfolio's book value of £442.5 million as of September 30, 2025, and expects a small gain on sale. This transaction, which accelerates the group's decision to cease new lending in this segment, is projected to increase Secure Trust Bank's pro forma Common Equity Tier 1 ratio by approximately 195 basis points to 14.8% as of September 30, 2025, unlocking capital for reinvestment in higher-returning strategic priorities and potential shareholder distributions. The sale is anticipated to complete in the first quarter of 2026, and the business incurred a loss of £4.5 million in the first half of 2025 with a net lending balance of £501.3 million as of June 30, 2025. Disclaimer*
About this update from Secure Trust Bank Plc
[{"type":"text","content":"\n\nPRESS RELEASE\nSecure Trust Bank PLC\n24 December 2025\nFor immediate release\n \nTHIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n \nSECURE TRUST BANK PLC\nSale of Consumer Vehicle Finance Business\n \nHighlights\n· Sale of Consumer Vehicle Finance Business at a premium to book value expecting to generate a small gain on sale\n· The transaction increases Group pro forma CET1 ratio by approximately 195bps\n· The completion of the sale will unlock capital to reinvest into higher returning strategic priorities, to support long-term growth ambitions and to consider further shareholder distributions \n\nSecure Trust Bank PLC (\"STB\" or the \"Group\"), a leading specialist lender, announces that it has entered into a business sale agreement to sell its Consumer Vehicle Finance business1 (the \"Business\"), which comprises Consumer Vehicle Finance loans (the \"Portfolio\") and certain associated assets, to funds managed by LCM Partners, a leading European Alternative Investment Fund Manager (the \"Purchaser\"). \nOn 2 July 2025 STB announced that it would stop new lending in its Vehicle Finance business and run-off its remaining portfolio of loans. The Business sale accelerates this decision and is in line with the Group's strategic ambition to improve Return on Average Equity (\"ROAE\") over time and focus on deploying capital in its higher returning Core businesses.\nThe estimated consideration for the Business sale is £458.6 million2,3, a premium to the Portfolio's book value (which on 30 September 2025 was £442.5 million3). The final consideration is subject to adjustment on completion using a locked box mechanism2. The sale is expected to generate a small net gain on sale, after accounting for applicable transaction costs, and will complete during Q1 2026. A substantial cash deposit has been received by STB with the full consideration payable in cash on completion.\nOn completion¸ STB will derecognise the Portfolio and will service the Portfolio on commercial terms on behalf of the Purchaser until a targeted migration date in Q2 2026. The Group will remain responsible for administering, and retain liability for, payments due to customers under the FCA's motor finance commissions redress scheme (when finalised) for any ...