Final Results - Year Ended 31 December 1999

Secure Trust Banking Group PLC
14 March 2000

             Preliminary results for the year to 31 December, 1999
                                       
                                  Key Points
                                       
           * Dividends per share up 4% to 27p
           
           
           * Profit before exceptional goodwill item £10.1 million 
             (1998: £11.4 million)
               
               
           * Earnings per share before exceptional goodwill item 47.8p
             (1998: 51.9p)


 Chairman, Henry Angest, commented;

 'In 1999, Secure Trust Banking Group has recorded encouraging performances   
 in certain of our activities, with profits increasing 25% in the Arbuthnot   
 group and 18% in Personal Lending. These results were achieved despite the   
 impact on overall Group profits of falling interest rates and job losses in  
 the West Midlands, which is the principal location for our main business.    
 Looking to the future, we have instigated a number of promising new          
 initiatives which give me cause to be optimistic about the Group's           
 medium-term prospects.'

 Press enquiries for Secure Trust Banking Group PLC:

 Henry Angest, Chairman                                    Tel: [phone]
 Stephen Lockley, Finance Director                         Tel: [phone]

 Zoe Biddick / Katie Tzouliadis, Biddick Associates        Tel: [phone]


 CHAIRMAN'S STATEMENT

 As I envisaged at the time of our half-year results in September, trading
 conditions in the second half of the year to 31 December 1999 remained
 challenging, with low interest rates reducing our net interest income and    
 job losses in the West Midlands affecting the business of Secure Trust Bank.

 Despite these factors, the resilience of the Group's businesses is shown in  
 a rise in total income compared with the previous year. At the same time, we
 have continued to invest in developing the Group for the future and total
 costs, excluding bad debts, rose on a like-for-like basis by 9%. Including
 the effect of acquisitions, the rise was 13%. After a reduced bad debt charge
 of £0.7 million (1998: £1.1 million), profit before an exceptional goodwill
 item amounted to £10.1 million (1998: £11.4 million). Diluted earnings per
 share were 47.8p (1998: 51.9p).

 The financial position of the Group continues to be strong and the Board is
 expressing its confidence in the future by recommending an increase in the
 final dividend to 18.5p per share which, together with the interim dividend  
 of 8.5p, makes a total for the year of 27p, an increase of 4% over 1998.     
 The final dividend will be paid on 15 May 2000 to all shareholders on the    
 register at 24 March 2000.

 Secure Trust Bank

 Profits in Secure Trust Bank were £8.7 million, compared with £10.3 million  
 in 1998. In the core Household Cash Management business, management fees and
 commissions reduced by some 3%, caused by lower earnings from the Sickness,
 Accident and Redundancy insurance scheme offered to customers of Secure Trust
 Bank. Whilst this scheme is not underwritten by the Group, our earnings from
 it include a profit-based commission which has been adversely affected by the
 well publicised job losses in the West Midlands.

 On a positive note, loan advances in Personal Lending and Banking reached a
 record level, increasing by 6% over the previous year. This helped to offset
 the impact of average base rates falling by a quarter from 7.23% in 1998 to
 5.35% in 1999. The fall in net interest earnings from this division was,
 therefore, restricted to some 9%.

 Commission earnings in the retail Insurance Consultancy business increased   
 by 6%, reflecting an increase in average premium rates over the year.

 Arbuthnot Latham

 Each of the companies comprising the Arbuthnot group achieved good results   
 in 1999, with divisional pre-tax profits rising by 25% to £1.35 million.
 Arbuthnot Latham has continued to win new clients and increased its loan     
 book by 23% to £51.2 million and its deposits by 26% to £92.0 million.

 The acquisition of Weinel & Partners in July added to our investment         
 management, financial advisory and insurance broking capabilities. The
 combination of this acquisition with the strong performances of the existing
 businesses meant that fees and commissions earned by the division increased  
 by 32% over the level achieved in 1998. At the same time, our invoice        
 factoring activity continued its successful growth, increasing profits by    
 53%.

 Exceptional Goodwill Write-Off

 As announced at the time of our interim results, the goodwill relating to    
 West Yorkshire Insurance Company, which has previously been written-off      
 directly against reserves, has been reinstated and instead written-off       
 against the current year profit and loss account in accordance with the      
 requirements of Financial Reporting Standard 10 'Goodwill and Intangible     
 Assets'. This is an accounting entry only which has no effect on the Group's 
 net assets or distributable reserves.

 Staff and Management

 The circumstances of the past year have been challenging and the manner in
 which our staff and management have responded has been excellent. Their
 loyalty and endeavour is the cornerstone of all that we do and, on behalf    
 of the Board, I extend my thanks to each of them. In particular, I would like
 to pay tribute to the professionalism and hard work of all our IT staff in
 meeting the challenges of the so-called 'Millennium bug'. I am pleased to
 report that our computer systems have continued to function normally in the
 Year 2000.

 Future Plans and Outlook

 During the course of the last year, the Household Cash Management service    
 has been piloted in new geographic areas and new products have been          
 introduced by both Secure Trust Bank and Arbuthnot. Furthermore, work is
 underway on a number of exciting new projects, including an enhanced version
 of the Group's cash management service, incorporating an internet facility.
 We believe that this new version of the product has the potential to attract 
 a wider customer grouping, both socially and geographically, by utilising the
 opportunities for electronic cash collection and bill payment offered by new
 technologies such as the internet and interactive digital television. As a
 result of these medium-term initiatives, the Board is optimistic regarding   
 the outlook for the Group.

 Henry Angest
 Chairman


 CONSOLIDATED PROFIT AND LOSS ACCOUNT
 For the year ended 31 December 1999

                           Profit before   Exceptional       1999        1998
                        exceptional item          item (unaudited)   (audited)
                                   £'000         £'000      £'000       £'000
 Interest receivable from                                        
 loans, advances and             
 investments                      10,783             -     10,783      12,321
 Less: interest payable           (2,928)            -     (2,928)     (3,837)
                                  ______        ______     ______      ______
 Net Interest Income               7,855             -      7,855       8,484
                                                                   
 Fees and commissions          
 receivable                       24,496             -     24,496      23,156
 Less: fees and commissions  
 payable                            (616)            -       (616)       (537)
                                  ______        ______     ______      ______
   
 Operating Income                 31,735             -     31,735      31,103
                                  ______        ______     ______      ______
                                                                  
 Administrative expenses          19,810             -     19,810      17,705
 Depreciation and amortisation     1,170             -      1,170         884
 Provisions for bad and    
 doubtful debts                      693             -        693       1,107
                                  ______        ______     ______      ______
 Operating expenses               21,673             -     21,673      19,696
                                  ______        ______     ______      ______
                                                                
 Operating Profit                 10,062             -     10,062      11,407
                                                         
 Exceptional item  (note 1)            
 Goodwill previously eliminated  
 against reserves                      -        (2,472)    (2,472)          -
                                  ______        ______     ______      ______
                                                                
 Profit on ordinary            
 activities before tax (note 2)   10,062        (2,472)     7,590      11,407 
                                   
   
 Tax on profit on ordinary 
 activities                       (2,769)            -     (2,769)     (3,445)
                                  ______        ______     ______      ______

 Profit on ordinary activities 
 after tax                         7,293        (2,472)     4,821       7,962
 Minority interests                 (128)            -       (128)       (107)
                                  ______        ______     ______      ______
 Profit attributable to                                          
 shareholders of Secure
 Trust Banking Group PLC           7,165        (2,472)     4,693       7,855
 Dividends                        (3,943)            -     (3,943)     (5,418)
                                  ______        ______     ______      ______

 Retained profit for the year      3,222        (2,472)       750       2,437
                                  ______        ______     ______      ______
 Earnings per ordinary share                                     
 (note 3)                        
 Basic                              47.8p                    31.3p       52.3p
 Fully diluted                      47.8p                    31.3p       51.9p

 CONSOLIDATED BALANCE SHEET
 At 31 December 1999
                                          1999                  1998
                                    (unaudited)             (audited)
                                          £000                  £000
 Assets                                                   

 Cash                                      168                   187
 Loans and advances to banks
 and building societies                 49,054                52,243
 Loans and advances to customers        78,668                65,127
 Debt securities                        12,500                 6,500
 Intangible assets                       2,278                   310
 Tangible fixed assets                   7,250                 7,519
 Other assets                            5,999                 5,656
 Prepayments and accrued income          2,538                 3,149
                                       _______               _______
 Total assets                          158,455               140,691
                                       _______               _______
                                                         
 Liabilities                                              

 Deposits by banks                      12,297                 9,479
 Customer accounts                     104,028                87,543
 Insurance reserves                      4,583                 5,508
 Other liabilities                      13,116                14,544
 Accruals and deferred income            2,585                 2,507
 Minority interests                         79                    54
                                       _______               _______
                                       136,688               119,635
                                       _______               _______
                                                         
 Called up share capital                   144                   150
 Capital redemption reserve                  6                     -
 Share premium account                  13,370                13,362
 Profit and loss account (note 4)        8,247                 7,544
                                       _______               _______
                                                         
 Equity shareholders' funds             21,767                21,056
                                       _______               _______
                                                         
 Total liabilities                     158,455               140,691
                                       _______               _______

 NOTES

 1. Exceptional Item
  
    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, has been 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 is no taxation    
    charge or credit applicable to this item.
  
 2. Segmental Analysis of Profits             1999        1998
                                         unaudited)   (audited)               
                                             £'000       £'000
                                                           
    Personal Financial Services before     
    exceptional item                         8,715      10,327
    Exceptional item (note 1)                2,472           -
                                           _______     _______
    Personal Financial Services after       
    exceptional item                         6,243      10,327
    Private and Merchant Banking             1,347       1,080
                                           _______     _______
                                             7,590      11,407
                                           _______     _______

    Acquisitions contributed £177,000 to profit on ordinary activities before 
    tax.

 3. Earnings per Ordinary Share

    a) Basic
       Earnings per share are calculated on the net basis by dividing the     
       profit attributable to shareholders of £4,693,000 (31.12.98:           
       £7,855,000) by the weighted average number of ordinary shares          
       14,991,698 (31.12.98: 15,034,295) in issue during the year.
 
    b) Diluted
       Diluted earnings per ordinary share have been calculated in            
       accordance with FRS 14 by dividing the profit attributable to          
       shareholders of £4,693,000 (31.12.98: £7,855,000) by the weighted      
       average number of ordinary shares 14,997,403 (31.12.98: 15,141,528) in 
       issue during the year, adjusted to reflect the effect of outstanding
       share options.
 
    c) Adjusted
       The exceptional item charged against profit on ordinary activities     
       before tax does not relate to the profitability of the Group on an     
       ongoing basis. Therefore, an adjusted basic earnings per share is
       presented, as follows:-
 
                                        1999                      1998
                                       (unaudited)              (audited)
                                      £'000        pence     £'000      pence
       Basic                          4,693         31.3     7,855       52.3
       Exceptional item               2,472         16.5         -          -
                                     ______       ______    ______     ______
       Earnings excluding exceptional
       item and adjusted earnings
       per share                      7,165         47.8     7,855       52.3
                                     ______       ______    ______     ______
                                         

 4. Profit and Loss Account                   1999           1998
                                        (unaudited)      (audited)
                                             £'000          £'000
    Retained profit                         30,177         31,946
    Premiums on acquisitions written off   (21,930)       (24,402)
                                           _______        _______
                                             8,247          7,544
                                           _______        _______
                                                           
    Retained profit at 31 December 1999 is stated after deducting £2.52       
    million in respect of the cost of shares repurchased during the year.

 5. Basis of reporting
    The figures for the year ended 31 December 1999 have been prepared in all
    material respects on the basis of the accounting policies set out in the
    Group's 1998 statutory accounts. The preliminary results were approved by
    the Board of Directors on 13 March 2000 and are unaudited.

 6. Results for the year ended 31 December 1998
    The figures for the year ended 31 December 1998 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.