Secure Trust Banking Group PLC
25 November 2003
SECURE TRUST BANKING GROUP PLC
('Secure Trust')
Trading update
Secure Trust has continued its policy of investing in the development of all
aspects of the Group's businesses during the second half of 2003. This has
resulted in a controlled increase in costs, particularly in the area of
investment banking where a high quality team is being assembled in anticipation
of a sustained and meaningful upturn in activity levels. As indicated by the
Chairman of Secure Trust in his statement accompanying the interim results for
the 6 months to 30 June 2003, the timing and extent of this upturn is difficult
to predict with any certainty.
Whilst both share prices and stockmarket volumes showed strong growth during the
summer months, a greater note of caution became apparent during the autumn,
partly reflecting increasing interest rates. Thus, whilst the Group has
continued to build market share in trading small and mid cap equities, the rate
of growth in revenues from this activity has not been as fast as was
anticipated. At the same time, income from corporate finance mandates is uneven
and the realisation of fees is unpredictable. These factors, combined with the
impact of the investments being undertaken by the Group, have led to a situation
where the results for the year are likely to be below current market
expectations.
The Board views investment banking as an important part of the Group's future
development and regards the associated cost build-up as a necessary step in
establishing its presence at a time when the market offers considerable
opportunities. The Board is therefore fully committed to its strategy of
investing for the future, whilst at the same time reaffirming the Group's
long-held dividend policy.
Press enquiries for Secure Trust Banking Group PLC:
Secure Trust Banking Group PLC
Henry Angest, Chairman and Chief Executive Tel: 020 7374 0417
Stephen Lockley, Finance Director Tel: 020 7002 4686
Biddicks
Katie Tzouliadis / Kathryn van der Kroft Tel: 020 7448 1000
This information is provided by RNS
The company news service from the London Stock Exchange