Final Results

Secure Trust Banking Group PLC
22 March 2005




                         SECURE TRUST BANKING GROUP PLC
                                        
                                        
              Preliminary results for the year to 31 December 2004

                                   Key Points

• Underlying profit before tax, exceptional items and goodwill
  amortisation increased by 54% to £5.6 million.

• Underlying earnings per share before exceptional items and goodwill
  amortisation up 90% to 34.9p.

• Total operating income 17% higher at £49.9 million.

• Profit before tax increased to £4.0 million (2003: £3.9 million).

• Dividend increased to 31.5p (2003: 31p).

• Current year started positively.

• Successful open offer raised £3.8 million after the year-end.

• Name to be changed to Arbuthnot Banking Group PLC.

Chairman, Henry Angest, commented:

'These results reflect the progress being made across Secure Trust's businesses,
most notably in Arbuthnot Securities, which traded profitably in the last
quarter of 2004 and in the first two months of 2005. The Directors are confident
about the Group's prospects, as reflected in the decision to increase the
dividend for the 16th consecutive year.'
______________________________________________________________________

Press enquiries:

Secure Trust Banking Group PLC
Henry Angest, Chairman and Chief Executive                  Tel: [phone]
Stephen Lockley, Finance Director                           Tel: [phone]
Andrew Salmon, Chief Operating Officer                      Tel: [phone]

Biddicks
Katie Tzouliadis                                            Tel: [phone]


CHAIRMAN'S STATEMENT

I am pleased to report that Secure Trust Banking Group achieved a profit before
tax, exceptional items and goodwill amortisation in 2004 of £5.6 million, an
increase of some 54% over the comparable underlying profits of £3.6 million for
last year.

Earnings per share before exceptional items and goodwill amortisation were
34.9p, some 90% higher than the comparable underlying earnings per share of
18.4p for 2003.

This result reflects good progress in both investment banking and private
banking, with the increase of 17% in the Group's total operating income to £50
million being driven by increases of 72% in Arbuthnot Securities and 13% in
Arbuthnot Latham. We are beginning to reap the benefits of our sustained
investment programme in the Arbuthnot businesses. Recognising their growing
importance to the Group, we are proposing at the forthcoming Annual General
Meeting to change the name of the company to Arbuthnot Banking Group PLC.

During the year, the Group consolidated its London-based operations into new
freehold premises in the City. Whilst this is yielding operational benefits, it
has led to an increase in our property and information technology costs when
compared with the previous year, particularly since some £1.4 million of such
costs were borne in 2003 by Old Mutual Group, from whom we purchased Arbuthnot
Securities. Furthermore, last year's results reflected the effect of a cash
contribution by Old Mutual Group of £1 million towards other operating expenses
in Arbuthnot Securities. Adjusting for these factors, the Group's comparable
underlying profit before tax, exceptional items and goodwill amortisation in
2003 amounted to £3.6 million, compared with £5.6 million in 2004.

After exceptional charges of £1.4 million, relating to reorganisation and
redundancy costs and the costs of rationalising the Group's premises, profit
before tax for 2004 increased to £4.0 million (2003: £3.9 million). Earnings per
share on this basis were 25.9p (2003: 20.1p). We propose to increase the final
dividend by 0.5p to 21p, which will be paid on 27 May 2005 to shareholders on
the register at 29 April 2005, bringing the total dividend for the year to 31.5p
(2003: 31p).

Secure Trust Bank

Secure Trust Bank's investment programme continued during 2004 with upgrades to
the branch network to facilitate the selling of a wider range of financial
services and the development of new distribution channels. The benefits of this
programme were reflected in a particularly good performance from the division's
insurance activities. The number of motor policies sold by SecureDirect rose by
11% over the previous year. At the same time, earnings from other insurance
products also increased and overall fees and commissions earned by the division
rose by 5%. Net interest income also increased by 5%, reflecting both higher
volumes, with overall new lending increasing by 2%, and rising interest rates.

This programme has also entailed investing in both staff and infrastructure, as
a result of which the division's profit before exceptional items was £6.8
million (2003: £7.1 million).

Arbuthnot Latham

The Group's private banking division has made progress in all areas of activity
during 2004 and was ranked second for customer satisfaction out of 130 UK-based
private banks in an independent survey carried out by Market Dynamics. Our
success has been reflected in an 18% increase in banking customers, 22% rise in
the loan book, 5% growth in customer deposits and 30% rise in factoring volumes.
Fund management, pensions & investments and general insurance all displayed
improved results and our property lending activities produced a strong
performance. Overall, the division's revenues were 13% above last year.

Following a thorough review of our bad debt provisions in anticipation of the
change to International Financial Reporting Standards in 2005, we have concluded
that the level of specific bad debt provisions held in Arbuthnot Latham is
sufficient to cover the risk of loan losses and therefore the additional general
bad debt provision which we have previously maintained, amounting to £0.6
million, is no longer required. After releasing this general bad debt provision
in full, the profit before exceptional items and goodwill amortisation of the
division rose to £1.8 million (2003: £0.9 million).

We will continue our investment in the business in 2005 and have recruited
several new key employees to supplement our technical and sales teams.

Arbuthnot Securities

Following the appointment of a new Chief Executive and the implementation of
cost-cutting measures last autumn, I am pleased to report that Arbuthnot
Securities traded profitably during the final quarter of 2004 and the first two
months of 2005. The division's operating income for the year rose by 72% over
2003, with significant improvements being achieved in each of the three revenue
streams, namely institutional stockbroking commissions, market-making profits
and corporate finance fees.

During the year, the corporate finance team advised on some 25 transactions: we
sponsored 10 AIM listings and are proud of the fact that, at the time of
writing, all of our new issue fund raisings are trading above their issue
prices. We also successfully completed 8 secondary fund raisings and advised on
acquisitions with a total value in excess of £300 million.

As I have mentioned earlier, the 2003 results of Arbuthnot Securities benefited
from a significant contribution to overheads by Old Mutual Group. Adjusting for
this, underlying operating costs rose by 25% and operating losses were reduced
by 58% to £1.6 million. Having achieved profitability in the last quarter of
2004 and so far this year, we are determined to ensure that Arbuthnot Securities
contributes positively to the Group's results in 2005.

Property

Following the purchase of freehold premises in the City of London in 2003, the
Group's London-based businesses are now all located together at Arbuthnot House
in Ropemaker Street, EC2. This building has been revalued on a vacant possession
basis at 31 December 2004 at £20.8 million, which represents an overall surplus
of £2.6 million above the costs of acquiring and moving into it. This is the
first year that the Group has had a head office location in London and the
property costs relating to this head office are shown separately in the
presentation of the divisional results for the year.

Outlook

Trading has begun in positive fashion in 2005, with results for the first two
months ahead of both budget and last year. Whilst it is too early to extrapolate
a definitive trend from these results, particularly given the uneven nature of
corporate finance revenues, we are nevertheless encouraged by the performances
being achieved across the Group's diverse portfolio of businesses.

The successful Open Offer to shareholders, which was 130% subscribed, raised
approximately £3.8 million for the Group in January 2005 and places our finances
on a strong footing going forward. The Directors therefore remain confident
about the Group's prospects and this confidence is reflected in our decision to
recommend an increased dividend, a policy which we have maintained every year
since the Company joined the stock market 16 years ago.

Henry Angest
Chairman




CONSOLIDATED PROFIT AND LOSS ACCOUNT

For the year ended 31 December 2004


                           Profit Before                      
                             Execptional  Exceptional         2004        2003
                                   Items        Items   (Unaudited)   (Audited)
                                    £000        £000          £000        £000
Interest receivable from
loans, advances and
investments                       15,050           -        15,050      12,899
Less: interest payable            (6,285)          -        (6,285)     (4,739)
                                 ---------   ---------     ---------    --------
Net interest income                8,765           -         8,765       8,160

Fees and commissions
receivable                        41,673           -        41,673      34,931
Less: fees and commissions
payable                             (578)          -          (578)       (405)
                                 ---------   ---------     ---------    --------
Operating income                  49,860           -        49,860      42,686
                                 ---------   ---------     ---------    --------

Administrative expenses           41,735           -        41,735      34,331
Exceptional administrative
expenses                               -       1,386         1,386       1,256
Depreciation                       1,965           -         1,965       1,467
Amortisation of goodwill             202           -           202         199
Exceptional goodwill
write-off                              -           -             -         655
Provisions for bad and
doubtful debts                       595           -           595         900
                                 ---------   ---------     ---------    --------
Operating expenses                44,497       1,386        45,883      38,808
                                 ---------   ---------     ---------    --------

Profit on ordinary
activities                        
before tax (note 1)                5,363      (1,386)        3,977       3,878
Tax on profit on ordinary
activities                        (1,023)        416          (607)     (1,250)
                                 ---------   ---------     ---------    --------

Profit on ordinary
activities                                     
after tax                          4,340        (970)        3,370       2,628
Minority interests                   (17)          -           (17)        (10)
                                 ---------   ---------     ---------    --------

Profit attributable to
shareholders of Secure
Trust Banking Group PLC            4,323        (970)        3,353       2,618
Dividends                         (4,349)          -        (4,349)     (4,015)
                                 ---------   ---------     ---------    --------
Retained loss for the year           (26)       (970)         (996)     (1,397)
                                 ---------   ---------     ---------    --------

Earnings per ordinary
share (note 2)
Basic and fully diluted             33.4p                     25.9p       20.1p

The profit on ordinary activities before tax and retained profit on an
historical cost basis are not significantly different from the profit on
ordinary activities before tax and retained profit for the periods above.


STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

For the year ended 31 December 2004

                                                             2004         2003
                                                       (Unaudited)    (Audited)
                                                             £000         £000


Loss for the financial year                                  (996)      (1,397)

Unrealised gain arising on revaluation of freehold
properties                                                  2,380        1,931
                                                         ----------     --------
Total recognised gains for the year                         1,384          534
                                                         ----------     --------



CONSOLIDATED BALANCE SHEET

At 31 December 2004

                                                             2004         2003
                                                       (Unaudited)    (Audited)
                                                             £000         £000
Assets

Cash                                                          139          235
Loans and advances to banks and building societies         52,367       74,346

Loans and advances to customers                           130,054      110,268
Debt securities                                            50,500       28,500
Intangible fixed assets                                     2,358        2,560
Tangible fixed assets                                      33,208       28,542
Other assets                                               17,127        9,302

Prepayments and accrued income                              4,483        3,069
                                                         ----------     --------
Total assets                                              290,236      256,822
                                                         ----------     --------

Liabilities

Deposits by banks                                          26,380       15,154
Customer accounts                                         202,996      187,295

Other liabilities                                          21,931       18,874
Accruals and deferred income                                6,147        4,113
Subordinated loan notes                                     7,817        7,817
Equity minority interests                                      89           77
                                                         ----------     --------
                                                          265,360      233,330
                                                         ----------     --------

Called up share capital                                       130          130
Share premium account                                      13,370       13,370
Capital redemption reserve                                     20           20
Revaluation reserve                                         4,822        2,442
Profit and loss account (note 3)                            6,534        7,530
                                                         ----------     --------
Equity shareholders' funds                                 24,876       23,492
                                                         ----------     --------
                                                         ----------     --------
Total liabilities                                         290,236      256,822
                                                         ----------     --------



CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 December 2004

                                                              2004        2003
                                                        (Unaudited)   (Audited)
                                                              £000        £000

Net cash inflow from operating activities (note 4)          45,094      37,998


Returns on investments and servicing of finance:

Dividends paid to minority shareholders of
subsidiary undertaking                                          (5)         (5)

Taxation                                                    (1,499)     (2,315)


Capital expenditure and financial investment:

Purchase of debt securities (net)                          (22,000)    (11,500)

Purchase of tangible fixed assets                           (5,060)    (19,834)
Sale of tangible fixed assets                                  914         238
                                                          ----------    --------
                                                           (26,146)    (31,096)
                                                          ----------    --------

Acquisitions:

Acquisition expenses                                             -        (655)

Less cash acquired                                               -       4,693
                                                          ----------    --------
Net cash inflow                                                  -       4,038
                                                          ----------    --------

Equity dividends paid                                       (4,015)     (3,950)


Financing:

Shares repurchased                                               -      (1,966)
                                                          ----------    --------
Increase in cash                                            13,429       2,704
                                                          ----------    --------


NOTES

1.      Segmental Analysis of Profits

                         Year to 31.12.04 (Unaudited)

              Personal   Private   Investment   Subordinated       Head    Group
             financial   banking      Banking     loan stock     office    total
              services                                         property
                  £000      £000         £000           £000       £000     £000

Segment profit   6,816     1,841       (1,622)             -       (887)   6,148
Subordinated
loan note            
interest             -         -            -           (583)         -     (583)
Amortisation
of                   
goodwill             -      (202)           -              -          -     (202)
                 -------   -------     --------      ---------    -------  -------
Profit before                                     
exceptional
items            6,816     1,639       (1,622)          (583)      (887)   5,363
Exceptional
items             (214)     (431)        (741)             -          -   (1,386)
                 -------   -------     --------      ---------    -------  -------
Profit
before tax       6,602     1,208       (2,363)          (583)      (887)   3,977
                 -------   -------     --------      ---------    -------  -------


                        Year to 31.12.03 (Audited)

             Personal   Private banking Investment   Subordinated       Head    Group
            financial                      Banking     loan stock     office    total
             services                                               property
                 £000            £000         £000           £000       £000     £000

Segment         7,110             921       (1,528)             -          -    6,503
profit
Subordinated
loan note          
interest            -               -            -           (515)         -     (515)
Amortisation
of goodwill         -            (199)           -              -          -     (199)
                -------         -------     --------      ---------    -------  -------
Profit before   
exceptional
items           7,110             722       (1,528)          (515)         -    5,789
Exceptional
items               -            (496)      (1,415)             -          -   (1,911)
                -------         -------     --------      ---------    -------  -------
Profit
before tax      7,110             226       (2,943)          (515)         -    3,878
                -------         -------     --------      ---------    -------  -------

2.      Earnings per Ordinary Share

Earnings per ordinary share are calculated on the net basis by dividing the
profit attributable to shareholders of £3,353,000 (2003: £2,618,000) by the
weighted average number of ordinary shares 12,951,974 (2003: 13,027,289) in
issue during the year. There is no difference between basic and fully diluted
earnings per ordinary share.

Adjusted earnings per share are calculated by dividing the profit attributable
to shareholders before exceptional items of £4,323,000 (2003: £4,152,000) by the
weighted average number of ordinary shares 12,951,974 (2003: 13,027,289) in
issue during the year.

NOTES (continued)

3.      Profit and Loss Account
                                                          2004            2003
                                                    (Unaudited)       (Audited)
                                                          £000            £000
Retained profit:
Opening balance                                         29,460          32,823
Cost of shares repurchased                                   -          (1,966)
Loss for the period                                       (996)         (1,397)
                                                      ----------        --------
Closing balance                                         28,464          29,460
Premiums on acquisitions written off                   (21,930)        (21,930)
                                                      ----------        --------
                                                         6,534           7,530
                                                      ----------        --------

4. Reconciliation of operating profit to net cash inflow from operations

                                                            2004          2003
                                                      (Unaudited)     (Audited)
                                                            £000          £000

Operating profit before exceptional item                   5,363         5,789

Exceptional administrative costs                          (1,386)       (1,256)

Profit on sale of tangible fixed assets                     (104)          (55)

Increase in accrued income and prepayments                (1,414)          981
Increase in accruals and deferred income                   2,034          (808)

Provisions for bad and doubtful debts                        595           900

Depreciation and amortisation                              2,167         1,666
                                                        ----------      --------
Net cash flow from trading activities                      7,255         7,217

Net decrease in loans and advances to banks and
customers                                                 16,573         1,787

Net increase in deposits by banks and customer
accounts                                                  26,927        29,760

Net increase in other assets                              (6,934)        6,807

Net increase in other liabilities                          1,273        (7,573)
                                                        ----------      --------
Net cash inflow from operating activities                 45,094        37,998
                                                        ----------      --------

5. Basis of reporting

The figures for the year ended 31 December 2004 have been prepared in all
material respects on the basis of the accounting policies set out in the Group's
2003 statutory accounts. The preliminary results were approved by the Board of
Directors on 21 March 2005 and are unaudited.


6. Results for the year ended 31 December 2003

The figures for the year ended 31 December 2003 are derived from the Group
Accounts for the year. A copy of the Group Accounts for that year, on which the
auditors gave an unqualified opinion, has been delivered to the Registrar of
Companies.



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