Business
Secure Trust Bank PLC Results to 31 December 2019
Secure Trust Bank PLC Results to 31 December 2019.
About this update from Secure Trust Bank Plc
[{"type":"text","content":"\n \n \n RNS Number : 1947M\n Secure Trust Bank PLC\n 07 May 2020\n \n \n \n \n PRESS RELEASE\n \n \n Thursday 7 May 2020\n \n \n For immediate release\n \n \n \n \n \n SECURE TRUST BANK PLC\n \n \n \n \n \n Audited Final Results for the year ended 31 December 2019\n \n \n \n \n \n Continued strong performance in 2019 delivering increased profits\n \n \n \n \n \n Secure Trust Bank PLC (\"STB\", the \"Bank\" or the \"Group\") is pleased to announce an 11.5% increase in Group profit before tax to £38.7m for the year ended 31 December 2019. \n \n \n Controlled growth in both our Business Finance and Consumer Finance businesses continued to deliver increased profits in 2019. Customer numbers, lending balances and income increased whilst the cost of risk continued to decrease. These factors have driven strong growth in reported and adjusted earnings despite the slowdown in UK economic activity in the second half of 2019. \n \n \n The first two phases of the Motor Finance transformation programme were successfully completed in 2019. The Group expanded its savings offering with the launch of its fixed term Cash ISA in 2019 and the Access product range developed for launch in 2020. Capital and liquidity positions remain healthy. \n \n \n In the light of the COVID-19 outbreak, the Group has implemented contingency plans to ensure the wellbeing of its workforce, the majority of whom are now working from home, while focusing on supporting its customers and business partners, managing risks and safeguarding capital. HM Government's lockdown strategy has led to diminished Consumer Finance new business, with no new Motor Finance lending being written at present and Retail Finance running at circa 50% of normal, supported by demand for sports equipment and consumer electronics such as laptops. Significantly increased impairment charges are likely due to higher unemployment and falls in asset values and will impact the 2020 result. Additional stress testing has been undertaken and is continuing to assess the potential impact of the crisis on capital and liquidity positions, which remain healthy. Assessments to date indicate that the short duration of the loan books helps to maintain capital and liquidity levels above regulatory requirements. Given the uncertain impact of the outbreak on the UK economy, the Group ha...