Secure Trust Bank Plc · LSE:STB
Secure Trust Bank — FY2024 Earnings Presentation
41 slides from Secure Trust Bank's earnings presentation, Mar 13, 2025
Slide 1: 2024 Annual Results
2024 Annual Results 13 March 2025 Helping more consumers and businesses fulfil their ambitions
Slide 2: Reporting Basis
Secure Trust Bank PLC 2024 Annual Results 2 Reporting Basis Throughout this document reference is made to adjusted results which reflects continuing operations, excluding exceptional items as reported in the Annual Report and Accounts for the year ended 31 December 2024. Unless otherwise stated, fin
Slide 3: Contents
Secure Trust Bank PLC 2024 Annual Results 3 Contents 2024 Overview Financial Review Strategic Review and Outlook Appendices
Slide 4: 2024 Overview
Secure Trust Bank PLC 2024 Annual Results 4 2024 Overview Strong growth and improved cost income ratio David McCreadie Chief Executive Officer
Slide 5: On track to achieve an attractive return on capital
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 5 On track to achieve an attractive return on capital Excellent growth Opportunities £4 billion net potential in large identified to lending ambition addressable markets deliver operation
Slide 6: Group overview
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 6 Group overview Consumer Business Finance Finance Savings Retail Vehicle Real Estate Commercial Consumer Business units and brands Finance Finance Finance Finance Deposits Balances FY 20
Slide 7: 2024 performance highlights
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 7 2024 performance highlights Significant improvement in profit before tax pre impairments Customer lending Retail deposits Profit before tax Total dividend pre impairments £3.6bn + 8.8%
Slide 8: Progress towards achieving medium term targets
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 8 Progress towards achieving medium term targets ROAE impacted by inflated cost of risk Lending balances Net interest margin Cost income ratio Return on average equity CET1 Ratio Target:
Slide 9: Financial Review
Secure Trust Bank PLC 2024 Annual Results 9 Financial Review Rachel Lawrence Chief Financial Officer
Slide 10: Income statement
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 10 Income statement Underlying business performing well Adjusted income statement* Profit before tax pre impairments of £100.9m, +18.0% on FY 2023 £m FY 2024 FY 2023 % Change** Net intere
Slide 11: Net interest margin
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 11 Net interest margin NIM at 5.4% Making good progress towards medium term target NIM bridge % • H2 NIM at 5.5% (H1 5.3%) 7.0% • Retail Finance NIM increased 0.4pp to 6.8% (FY 2023 6.4%)
Slide 12: Operating expenses
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 12 Operating expenses Cost income ratio (CiR) improvement to 50.9% with cost growth limited to 4.1% Cost base growth limited to 4.1% and CiR reduced by 3.1pp Cost income ratio + £4.1m • L
Slide 13: Impairment charges and provisions (1 of 2)
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 13 Impairment charges and provisions (1 of 2) Coverage ratio increased to 3.0% Cost of risk (CoR) of 1.8% increased from FY 2023 (1.4%) Cost of risk and coverage ratio • Vehicle Finance C
Slide 14: Impairment charges and provisions (2 of 2)
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 14 Impairment charges and provisions (2 of 2) Impact of BiFD review on Vehicle Finance and Group cost of risk Group CoR bridge* Consumer Vehicle Finance 2.0% - Monthly defaults, index: Ja
Slide 15: Provisioning for Vehicle Finance commissions
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 15 Provisioning for Vehicle Finance commissions 25 Oct 2024 1-3 Apr 2025 June/July 2025 13 Dec 2025 Event timeline Court of Appeal decisions Date of Appeal in Supreme Court, FCA Expect de
Slide 16: Summary balance sheet
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 16 Summary balance sheet Strong lending growth of 8.8% driving a 4.7% increase in tangible book value per share £m FY 2024 FY 2023 % Change Cash and BoE reserve account 445.0 351.6 26.6%
Slide 17: Loans and advances to customers
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 17 Loans and advances to customers Increased by 8.8% to £3.6bn Loans and advances to customers £bn Loans and advances to customers mix 3.7 7.8% -7.9% 19.5% 0.1 0.0 3.5 11% 0.1 3.3 0.1 £3.
Slide 18: Capital
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 18 Capital Capital ratios with adequate headroom over regulatory minimums CET1 ratio reduced at 12.3% CET1 ratio movement 14.0% • Capital required to support lending growth funded by unde
Slide 19: Funding and liquidity
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 19 Funding and liquidity Funding levels increased to support lending growth Funding FY 2024 FY 2023 • Customer deposits grew by 13.0% to £3.2bn Term Term deposits ISA deposits ISA • Focus
Slide 20: Segmental information
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 20 Segmental information Operational leverage key to driving increased profitability, Retail Finance largest contributor to the Group Retail Vehicle Real Estate Commercial £m Central Tota
Slide 21: Strategic Review and Outlook
Secure Trust Bank PLC 2024 Annual Results 21 Strategic Review and Outlook David McCreadie Chief Executive Officer
Slide 22: Clear strategic focus
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 22 Clear strategic focus Vision To be the most trusted specialist lender in the UK Purpose To help more consumers and businesses fulfil their ambitions Our Strategic Priorities Enhance cu
Slide 23: Significant strategic progress: Simplify
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 23 Significant strategic progress Simplify Initial £5m Project Fusion target achieved in full New target for Project Fusion annualised savings on track with £3m to be delivered in 2025 Or
Slide 24: Significant strategic progress: Enhance customer experience
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 24 Significant strategic progress Enhance customer experience Digital-first approach for Savings customers: - 97% registered for Online banking - 30% registered for Mobile banking app Aut
Slide 25: Significant strategic progress: Leverage networks
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 25 Significant strategic progress Leverage networks Extensive distribution relationships across consumer businesses Extended contracts with key furniture and jewellery retailers in Retail
Slide 26: Significant strategic progress: Enabled by technology
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 26 Significant strategic progress Enabled by technology Migrated e-signature capability to in-house developed solution for Retail Finance Positive customer adoption of Open Banking paymen
Slide 27: Outlook
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 27 Outlook Progressing towards medium term targets Strategic considerations • Evidence of demand for credit increasing • Legal and regulatory processes to provide clarity on Vehicle Finan
Slide 28: Excellent growth potential in our specialist markets
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 28 Excellent growth potential in our specialist markets Excellent growth Opportunities £4 billion net potential in large identified to lending ambition addressable markets deliver operati
Slide 29: Secure Trust Bank PLC 2024 Annual Results
Secure Trust Bank PLC 2024 Annual Results 29
Slide 30: Appendices
Secure Trust Bank PLC 2024 Annual Results 30 Appendices
Slide 31: Retail Finance
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 31 Retail Finance Helping consumers purchase lifestyle goods and services Income statement Highlights £m FY 2024 FY 2023 % Change • 11.0% net lending growth driving increased income Net i
Slide 32: Vehicle Finance
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 32 Vehicle Finance Helping customers buy used vehicles and dealers buy vehicles for their forecourts Income statement Highlights £m FY 2024 FY 2023 % Change • New business lending increas
Slide 33: Real Estate Finance
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 33 Real Estate Finance Secured borrowing to landlords and facilities to property developers and SMEs Income statement Highlights £m FY 2024 FY 2023 % Change • Net lending growth of 7.8% o
Slide 34: Commercial Finance
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 34 Commercial Finance Providing working capital finance to UK SMEs and funding for strategic events Income statement Highlights £m FY 2024 FY 2023 % Change • New business volumes impacted
Slide 35: Savings
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 35 Savings Helping our customers save for special events Highlights • 13% increase in deposit balances to £3.2bn • 69% (FY 2023: 63%) retention of maturing term deposits • 96% of customer
Slide 36: Reconciliation of adjusted results to Annual Report, 2024
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 36 Reconciliation of adjusted results to the Annual Report and Accounts for the year ended 31 December 2024 Adjusted Exceptional Continuing Discontinued Total £m FY 2024 items FY 2024 ope
Slide 37: Reconciliation of adjusted results to Annual Report, 2023
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 37 Reconciliation of adjusted results to the Annual Report and Accounts for the year ended 31 December 2023 Adjusted Exceptional Continuing Discontinued Total £m FY 2023 items FY 2023 ope
Slide 38: IFRS9 Economic Scenarios and Weightings
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 38 IFRS9 A reduction in Base and Severe peak Economic Scenarios and Weightings unemployment rates, combined with an increase in Downside has been 31 Dec 2024 31 Dec 2024 31 Dec 2024 31 De
Slide 39: Important notice
2024 Overview Financial Review Strategic Review and Outlook Appendices Secure Trust Bank PLC 2024 Annual Results 39 Important notice This presentation and the information, statements This document contains forward looking statements about the business, strategy and plans of STB and its subsidiaries
Slide 40: Glossary
Secure Trust Bank PLC 2024 Annual Results 40 Glossary NIM Net interest margin COF Cost of funds NRM Net revenue margin RAM Risk adjusted margin CiR Cost to income ratio CoR Cost of risk ROAE Return on average equity CET1 Common Equity Tier 1 EPS Earnings per share RWA Risk weighted assets
Slide 41: Helping more consumers and businesses fulfil their ambitions
Helping more consumers and businesses fulfil their ambitions