Final Results

Secure Trust Banking Group PLC
20 March 2001



                        SECURE TRUST BANKING GROUP PLC

             Preliminary results for the year to 31 December 2000

                                  Key Points




  * Dividends per share up 4% to 28p

  * Like-for-like profits before goodwill £9.9 million (1999: £10.1 million)

  * Earnings per share 48.2p (1999: 47.8p)



Chairman, Henry Angest, commented,

'I am pleased to report growth in both earnings and dividends for shareholders
in a year where our main emphasis has been on building a platform for future
progress. Secure Trust is in a strong financial position and the increase in
the dividend is an expression of our confidence in the Group's prospects.'



Press enquiries for Secure Trust Banking Group PLC:
Secure Trust Banking Group PLC
Henry Angest, Chairman                                       Tel: [phone]
Stephen Lockley, Finance Director                            Tel: [phone]

Biddicks
Zoe Biddick/Katie Tzouliadis                                 Tel: [phone]



CHAIRMAN'S STATEMENT

In a year where our main priority has been to plan for the next development
phase in Secure Trust's business, I am pleased to report that like-for-like
profits before goodwill for 2000 were £9.9 million (1999: £10.1 million).
Earnings per share rose by 1% to 48.2 pence.

After allowing for the interest cost of the share buy-backs carried out in
late 1999 and during 2000, pre-tax profits were £9.5 million (1999: £10.1
million before exceptional items).

The Directors are recommending a final dividend of 19 pence per share which,
together with the interim dividend of 9 pence, makes a total for the year of
28 pence, an increase of 4% over 1999. The final dividend will be paid on 18
May 2001 to all shareholders on the register at 30 March 2001.

Secure Trust Bank

The year 2000 has been a period of transition for Secure Trust Bank, with
significant time and resources being devoted to new product development,
systems enhancements, joint venture negotiations and the evolution of a new
management structure for the future, on which I comment more fully below.
These factors are reflected in an increase in overheads of some 7%, whilst the
benefits of these investments will not be realised fully until future periods.
As a result the division's profits were £8.2 million against £8.7 million last
year.

Income in the Household Cash Management business increased by 4%. After a slow
start to the year, personal loan volumes increased in the second half as a
result of intensive marketing. Advances during the year achieved a similar
level to the record amount reported in 1999 and total income from Personal
Lending and Banking rose by 3%.

Our Retail Insurance business has undergone a period of significant
restructuring during the year, with the closure of 5 branches which we
concluded would be uneconomic going forward. As a result, volumes have reduced
and income fell by some 3%. A new managing director has recently been
appointed to this business and a strategy for renewed growth is being
implemented.



Arbuthnot Latham

Following the good growth achieved in 1999, the Private and Merchant Banking
division has again had a successful year, increasing its profit by 21% to £1.7
million. Its personalised approach to providing flexible, tailored solutions
to clients' needs, coupled with high service levels, has continued to win new
business. The loan book increased by 26% to £61 million, deposits rose by 15%
to £106 million and factored invoice volumes grew by 28% to £48 million.
Together, these growth factors led to an increase in net interest income of
28%. At the same time, much emphasis continues to be placed on the development
of our fee-earning activities, such as investment management, financial
planning, pensions and insurance. As a result fees and commissions received
rose by 19%.



Staff and Management

Having reached the age of 70, Ron Paston decided that the time had come for
him to retire from executive duties at the end of last year but I am pleased
that he has agreed to remain on the Board as non-executive Deputy Chairman. In
recognition of the outstanding contribution he has made to the development of
the Birmingham business over the past 38 years, he has been elected President
of our principal subsidiary, Secure Trust Bank PLC. His role as Chief
Executive of this subsidiary has been taken over by Keith Deakin and Derek
Pearson as Joint Managing Directors. Both have been Directors of Secure Trust
Bank PLC for a number of years and are well qualified to lead the business
forward in the years ahead.

Once again, the past year has been characterised by the commitment and hard
work of all our staff and, on behalf of the Board, I take this opportunity to
thank them. In particular, I would like to thank Ron Paston for the many years
of dedication and support he has given to me and the company.



Outlook

Much work has been undertaken over the past year to lay the foundations for
Secure Trust Bank to resume its growth path in future years via product
enhancements and improved marketing strategies, including joint ventures.
Meanwhile, the wealth management sector in which Arbuthnot Latham operates is
recognised as a growth area and the Directors are therefore optimistic
regarding the medium-term prospects for the Group.



Henry Angest

Chairman



CONSOLIDATED PROFIT AND LOSS ACCOUNT

For the year ended 31 December 2000
                                                           2000            1999

                                                     (unaudited)       (audited)

                                                          £'000           £'000

Interest receivable from loans, advances and             12,902          10,783
investments
Less: interest payable                                  (4,334)         (2,928)

Net interest income                                       8,568           7,855

Fees and commissions receivable                          26,294          24,496
Less: fees and commissions payable                        (758)           (616)

Operating income                                         34,104          31,735

Administrative expenses                                  22,533          19,810
Depreciation                                              1,135           1,105
Amortisation of goodwill                                    150              65
Provisions for bad and doubtful debts                       784             693

Operating expenses                                       24,602          21,673

Operating profit                                          9,502          10,062

Exceptional item (note 2)                                     -         (2,472)

Profit on ordinary activities before tax (note 1)         9,502           7,590
Tax on profit on ordinary activities                    (2,645)         (2,769)

Profit on ordinary activities after tax                   6,857           4,821
Minority interests                                         (16)           (128)

Profit attributable to shareholders of

Secure Trust Banking Group PLC                            6,841           4,693
Dividends                                               (3,922)         (3,943)
Retained profit for the year                              2,919             750

Earnings per ordinary share (note 3)
Basic and fully diluted                                   48.2p           31.3p
Fully diluted before exceptional item                     48.2p           47.8p



CONSOLIDATED BALANCE SHEET

At 31 December 2000
                                                          2000             1999

                                                   (unaudited)        (audited)

                                                         £'000            £'000
Assets

Cash                                                       224              168
Loans and advances to banks and building societies      52,468           51,573
Loans and advances to customers                         93,737           78,668
Debt securities                                         13,500           12,500
Intangible assets                                        3,081            2,278
Tangible fixed assets                                    7,314            7,250
Other assets                                             5,693            5,999
Prepayments and accrued income                           2,752            2,538

Total assets                                           178,769          160,974

Liabilities

Deposits by banks                                       16,227           13,397
Customer accounts                                      118,153          104,028
Insurance reserves                                       2,179            4,583
Other liabilities                                       16,719           14,535
Accruals and deferred income                             2,373            2,585
Minority interests                                          72               79

                                                       155,723          139,207

Called up share capital                                    139              144
Capital redemption reserve                                  11                6
Share premium account                                   13,370           13,370
Profit and loss account                                  9,526            8,247

Equity shareholders' funds                              23,046           21,767

Total liabilities                                      178,769          160,974



NOTES


 1. Segmental Analysis of Profits

                                                   2000                    1999

                                            (unaudited)               (audited)

                                                  £'000                   £'000

Personal Financial Services                       8,170                   8,715
Private & Merchant Banking                        1,712                   1,412
                                                  9,882                  10,127

Interest on Share Buy-Backs                       (230)                       -
Amortisation of Goodwill                          (150)                    (65)
Exceptional Item                                      -                 (2,472)
Profit before Taxation                            9,502                   7,590


 2. Exceptional Item

    In 1999, in accordance with FRS 10, goodwill of £2,472,000 arising on the
    acquisition of West Yorkshire Insurance Company Limited, previously
    written off directly against reserves, was reinstated and charged in the
    profit and loss account as the Group has no plans to resume motor
    insurance underwriting in the foreseeable future. There was no taxation
    charge or credit applicable to this item.

 3. Earnings per Ordinary Share

    Earnings per ordinary share are calculated on the net basis by dividing
    the profit attributable to shareholders of £6,841,000 (31.12.99: £
    4,693,000) by the weighted average number of ordinary shares 14,193,974
    (31.12.99: 14,991,698) in issue during the year. There is no difference
    between basic and fully diluted earnings per ordinary share.

    4. Profit and Loss Account


                                                           2000          1999

                                                     (unaudited)     (audited)

                                                          £'000         £'000

    Retained profit                                      31,456        30,177
    Premiums on acquisitions written off                (21,930)      (21,930)
                                                          9,526         8,247



    Retained profit for 31 December 2000 is stated after deducting £1.64
    million (1999: £2.52 million) in respect of the cost of shares repurchased
    during the year.

 4. Basis of reporting

    The figures for the year ended 31 December 2000 have been prepared in all
    material respects on the basis of the accounting policies set out in the
    Group's 1999 statutory accounts. The preliminary results were approved by
    the Board of Directors on 19 March 2001 and are unaudited.



 5. Results for the year ended 31 December 1999


    The figures for the year ended 31 December 1999 are extracted from the
    full Group Accounts for the year which have been delivered to the
    Registrar of Companies and on which the Auditors gave an unqualified
    report.