Interim Results

Secure Trust Banking Group PLC
19 September 2000

                                       
                        SECURE TRUST BANKING GROUP PLC
                                       
              Interim results for the six months to 30 June 2000
                                       
                                  Key Points
                                       
 *   Profit before taxation doubled to £4.6m
           
 *   Like-for-like profits at a similar level to prior year

 *   Earnings per share increased by 8% to 23.3p

 *   Interim dividend up 6% to 9p


 Chairman, Henry Angest, commented;

 'This year's earnings increase reflects a strong performance at Arbuthnot
 Latham, where profits rose by 38%, as well as the positive impact of share   
 buy-backs. At Secure Trust Bank, income increased by 3% despite last year's
 problems in the West Midlands manufacturing sector.

 Our geographic expansion and internet developments are progressing and while
 initiatives such as these are leading to costs rising in the short term, the
 directors are convinced that the long-term benefits will be positive for the
 Group'.

 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

 Profit before taxation of Secure Trust Banking Group PLC for the six months  
 to 30 June 2000 increased by 105% to £4.6 million. Adjusting for last year's
 exceptional item and interest costs relating to the share buy-backs in late
 1999 and early 2000, like-for-like profits were similar to last year at £4.7
 million. The effect of the share buy-backs on earnings per share was         
 beneficial, as a consequence of which diluted earnings per share rose by 8%  
 to 23.3 pence. The interim dividend, which will be paid on 3 November 2000   
 to shareholders on the register at 29 September 2000, is increased by 6% to  
 9 pence per share.

 Within these results, Secure Trust Bank increased income by 3% but has seen  
 a faster increase in costs, leading to a reduction in profits to £3.8        
 million. By contrast, the Arbuthnot Latham businesses have had a very strong 
 first half year and profits increased by 38% to £0.8 million.

 Secure Trust Bank

 In the core Household Cash Management service, despite an anticipated small
 decline in customer numbers due to last year's problems in the West Midlands
 manufacturing sector, management fee income remained level, with the         
 reduction in customer numbers being offset by increases in the level of fees 
 charged to customers. The profitability of the sickness, accident and        
 redundancy insurance scheme offered to customers of Secure Trust Bank has    
 improved compared with the previous year.

 Following a record year in 1999, new advances in the Personal Lending and
 Banking business have fallen back by 7% although interest income from        
 personal lending rose by 2% due to the higher average balances outstanding.  
 After a slightly higher bad debt charge, profits from this business were at a
 similar level to last year.

 Our retail Insurance Consultancy activities achieved a consistent level of
 profits against the background of highly competitive market conditions.

 Arbuthnot Latham

 Trading in the Private and Merchant Banking division has been buoyant during
 the first half of 2000 and most areas of operation within Arbuthnot Latham
 recorded improved profits. Compared with 30 June 1999, the loan book         
 increased by 36% to £55 million and deposits increased by 33% to £87 million.

 Net interest income rose by 18%, reflecting the growth in business volumes
 partly offset by lower free funds following increased investment in          
 subsidiaries. Funds under management increased by 43% and fees and           
 commissions rose by 45%.

 Outlook

 In my Chairman's Statement accompanying the 1999 Annual Results, I referred  
 to a number of new initiatives which the Group was pursuing. I am pleased to
 report that our geographic expansion of the Household Cash Management service
 is progressing, albeit that the new areas are currently small in relation to
 the overall size of the Group.

 We are making progress in developing our internet capabilities, which will
 open a new distribution channel for the Group's services. In addition, Secure
 Trust Bank has entered into a marketing arrangement to promote budgeting and
 bill paying services to customers of a major utility and further partnerships
 are being sought.

 Inevitably, initiatives such as these have led to costs rising at a faster
 rate than revenues over the last couple of years and this trend is likely to
 continue, certainly for the remainder of this year. Whilst these factors
 affect the short-term outlook, the directors are convinced that the long-term
 benefits will be positive for the Group.

 Henry Angest


 CONSOLIDATED PROFIT AND LOSS ACCOUNT

                                           6 months to 6 months to   Year to
                                             30.6.2000     30.6.99  31.12.99
                                           (unaudited) (unaudited) (audited)
                                                  £000        £000      £000
                                                                           
 Interest receivable from loans, advances and                                
 investments                                     5,925       5,312    10,783
 Less interest payable                         (1,884)     (1,408)   (2,928)
                                               _____________________________
 Net interest income                             4,041       3,904     7,855
                                                                            
 Fees and commissions receivable                12,918      11,293    24,496
 Less fees and commissions payable               (345)       (172)     (616)
                                               _____________________________
 Operating income                               16,614      15,025    31,735
                                               _____________________________
                                                                            
 Administrative expenses                        11,146       9,654    19,810
 Depreciation and amortisation                     609         490     1,170
 Provisions for bad and doubtful debts             272         169       693
                                               _____________________________
 Operating expenses                             12,027      10,313    21,673
                                               _____________________________
                                                                            
 Operating profit before exceptional item        4,587       4,712    10,062
                                                                            
 Exceptional item (note 2)                                                   
 Goodwill previously eliminated against               
 reserves                                            -       2,472     2,472
                                               _____________________________
                                                                            
 Profit on ordinary activities before tax        4,587       2,240     7,590
 Tax on profit on ordinary activities            1,255       1,364     2,769
                                               _____________________________
                                                                            
 Profit on ordinary activities after tax         3,332         876     4,821
 Minority interests                                  7          87       128
                                               _____________________________
                                                                            
 Profit attributable to shareholders of                                      
 Secure Trust Banking Group PLC                  3,325         789     4,693
 Dividends                                       1,278       1,279     3,943
                                               _____________________________
 Retained profit/(loss)                          2,047       (490)       750
                                               _____________________________
                                                                            
 Earnings per ordinary share (note 3)                                        
 Basic                                           23.3p        5.3p     31.3p
 Basic before exceptional item                   23.3p       21.7p     47.8p
 Fully diluted                                   23.3p        5.2p     31.3p
 Fully diluted before exceptional item           23.3p       21.6p     47.8p

 The Group has no recognised gains and losses other than the profits above    
 and, therefore, no separate statement of total recognised gains and losses   
 has been presented.


 CONSOLIDATED BALANCE SHEET

                                              30.6.2000     30.6.99  31.12.99
                                            (unaudited) (unaudited) (audited)
                                                   £000        £000      £000
                                                                             
 Assets                                                                       
 Cash and balances at central banks                 223         180       168
 Loans and advances to banks and building        
 societies                                       39,703      36,658    49,054
 Loans and advances to customers                 86,850      69,443    78,668
 Debt securities                                 13,500       8,500    12,500
 Intangible fixed assets                          3,040         303     2,278
 Tangible fixed assets                            7,232       7,267     7,250
 Other assets                                     6,040       5,478     5,999
 Prepayments and accrued income                   2,716       2,696     2,538
                                                _____________________________
 Total assets                                   159,304     130,525   158,455
                                                _____________________________
                                                                             
 Liabilities                                                                  
 Deposits by banks                                2,231       2,000    12,297
 Customer accounts                              109,537      86,233   104,028
 Insurance reserves                               4,095       4,935     4,583
 Other liabilities                               17,912      12,030    13,116
 Accruals and deferred income                     2,331       2,140     2,585
 Equity minority interests                           18         141        79
                                                _____________________________
                                                136,124     107,479   136,688
                                                _____________________________
                                                                             
 Called up share capital                            142         150       144
 Share premium account                           13,370      13,370    13,370
 Capital redemption reserve                           9           -         6
 Profit and loss account (note 4)                 9,659       9,526     8,247
                                                _____________________________ 
 Equity shareholders' funds                      23,180      23,046    21,767
                                                _____________________________ 
 Total liabilities                              159,304     130,525   158,455
                                                _____________________________


 CONSOLIDATED CASH FLOW STATEMENT  

                                            6 months to 6 months to   Year to
                                              30.6.2000     30.6.99  31.12.99
                                            (unaudited) (unaudited) (audited)
                                                  £000         £000      £000

 Net cash inflow from operating activities       2,772       6,171    20,258
 Dividends paid to minority shareholders of                                  
 subsidiary undertaking                           (68)           -     (103)
 Taxation                                        (611)       (677)   (3,565)
 Capital expenditure and financial investment  (1,519)     (2,106)   (6,616)
 Acquisitions                                    (874)           -   (1,265)
 Equity dividends paid                         (2,664)     (2,709)   (3,988)
 Financing                                       (635)     (1,245)   (3,765)
                                               _____________________________  
(Decrease)/increase in cash                    (3,599)       (566)       956
                                               _____________________________


 RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATIONS

                                           6 months to 6 months to   Year to
                                             30.6.2000     30.6.99  31.12.99
                                           (unaudited) (unaudited) (audited)
                                                  £000        £000      £000 
                                                                      
                                           
 Operating profit                                4,587       2,240     7,590
 Exceptional item                                    -       2,472     2,472
 Profit on sale of tangible fixed assets             -       (125)     (193)
 Increase in accrued income and prepayments      (178)         453       938
 Decrease in accruals and deferred income        (254)       (367)     (327)
 Provisions for bad and doubtful debts             272         169       693
 Depreciation and amortisation                     609         490     1,170
 Decrease in insurance reserves                  (488)       (573)     (925)
                                                ____________________________
                                                                             
 Net cash flow from trading activities           4,548       4,759    11,418
 Net decrease in loans and advances to banks                                  
 and customers                                     897      10,592   (9,820)
 Net decrease in deposits by banks and                                        
 customer accounts                             (4,557)     (8,789)    19,303
 Net decrease in other assets                     (41)         178     (343)
 Net increase in other liabilities               1,925       (569)     (300)
                                                ____________________________
 Net cash inflow from operating activities       2,772       6,171    20,258
                                                ____________________________


 NOTES TO THE FINANCIAL STATEMENTS

 1. Segmental analysis of profits
     

                                           6 months to  6 months to   Year to
                                             30.6.2000      30.6.99  31.12.99
                                           (unaudited)  (unaudited) (audited)
                                                  £000         £000      £000
                                                                         
 Personal Financial Services                     3,846        4,098     8,715
 Private and Merchant Banking                      848          614     1,347
                                                _____________________________
                                                 4,694        4,712    10,062
 Exceptional item                                    -      (2,472)   (2,472)
 Interest on share buy-back costs                (107)            -         -
                                                _____________________________
                                                 4,587        2,240     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, the Group having no plans to resume motor  
    insurance underwriting in the foreseeable future. There is no taxation 
    charge or credit applicable to this item.

 3. Earnings per ordinary share
     
 a) Basic
          
   Earnings per ordinary share are calculated on the net basis by dividing he
   profit attributable to shareholders of £3,325,000 (30.6.99: £789,000,
   31.12.99: £4,693,000) by the weighted average number of ordinary shares
   14,302,672  (30.6.99: 15,048,893, 31.12.99: 14,991,698) in issue during the
   period.
          
 b) Diluted

    Diluted earnings per ordinary share have been calculated in accordance   
    with FRS 14 by dividing the profit attributable to shareholders of   
    £3,325,000 (30.6.99: £789,000, 31.12.99: £4,693,000) by the weighted   
    average number of ordinary shares 14,302,672 (30.6.99: 15,070,721,   
    31.12.99: 14,997,403) in issue during the period, adjusted to reflect the 
    effect of outstanding share options.
       
 c)  Adjusted
          
     The exceptional item charged in 1999 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:
          
          
                          6 months to      6 months to           Year to
                            30.6.2000          30.6.99          31.12.99
                          (unaudited)      (unaudited)          (audited)
                        £000    pence    £000    pence      £000    pence
                                                                          
 Basic                 3,325     23.3     789      5.3     4,693     31.3
 Exceptional item          -        -   2,472     16.4     2,472     16.5
 Earnings excluding                                                        
 exceptional item and                                                      
 adjusted earnings per                                                     
 share                 3,325     23.3   3,261     21.7     7,165     47.8
          
          
 4. Profit and loss account
     
                                      6 months to  6 months to     Year to
                                        30.6.2000      30.6.99    31.12.99
                                      (unaudited)  (unaudited)   (audited)
                                             £000         £000        £000
                                                                          
 Retained profit                                                           
 Opening balance                          30,177        29,474      29,474
 Cost of shares repurchased                (635)             -     (2,519)
 Reinstatement of goodwill previously                                      
 written off                                   -         2,472       2,472
 Profit for the period                     2,047         (490)         750
                                        __________________________________
 Closing balance                          31,589        31,456      30,177
 Premiums on acquisitions written off   (21,930)      (21,930)    (21,930)
                                        __________________________________
                                           9,659         9,526       8,247
                                        __________________________________
     
 5. Basis of reporting
  
    The interim financial statements have been prepared on the basis of the
    accounting policies set out in the Group's 1999 statutory accounts. The
    statements were approved by the Board of Directors on 18 September 2000 
    and are unaudited. The auditors have not carried out a review of the    
    interim financial statements.
          
 6. 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.

 7. Copies of this interim report will be posted to all shareholders and      
    further copies are available from the Company's registered office: Secure 
    Trust Banking Group PLC, Paston House, Arleston Way, Solihull B90 4LH.