Completion of Loan Portfolio sale

RNS Number : 3133N

Secure Trust Bank PLC

31 May 2022

 

PRESS RELEASE

Secure Trust Bank PLC

LEI: 213800CXIBLC2TMIGI76

31 May 2022

Embargoed release at 07:00 am

SECURE TRUST BANK PLC

Completion of Loan Portfolio sale

Secure Trust Bank PLC ('Secure Trust Bank') announces that its subsidiary, Debt Managers (Services) Limited ('DMS'), completed the sale of its portfolio of loans ('Portfolio') to Intrum UK Finance Limited on 30 May 2022.

The gross value of the Portfolio as at 30 September 2021 was £84.7 million and the value of the consideration for the Portfolio as at 30 September 2021 was £94.0 million.

Secure Trust Bank expects that the sale will generate a net PBT benefit (taking into account anticipated market exit costs) in the current financial year and release around  £72 million  of risk weighted assets, with the associated capital release being reinvested into   Secure Trust Bank 's remaining specialist lending businesses and for other general corporate purposes.

Enquiries:

Secure Trust Bank PLC

David McCreadie, Chief Executive Officer

Rachel Lawrence, Chief Financial Officer

Tel: [phone]

Stifel Nicolaus Europe Limited (Joint Broker)

Robin Mann

Gareth Hunt

Stewart Wallace

Tel: [phone]

Canaccord Genuity Limited (Joint Broker)

Andrew Potts

Tel: [phone]

Tulchan Communications

Tom Murray

Misha Bayliss

Tel: [phone]

ENDS

The person responsible for the release of this information on behalf of STB is Mark Stevens, Company Secretary.

About the Company

Secure Trust Bank is an established, well‐funded and capitalised UK retail bank with a 70 year trading track record. Secure Trust Bank operates principally from its head office in Solihull, West Midlands, and had an average of 973 employees (full‐ time equivalent) during 2021. The Group's diversified lending portfolio currently focuses on two sectors:

(I)           Business Finance through its Real Estate Finance and Commercial Finance divisions, and

(II)           Consumer Finance through its Vehicle Finance and Retail Finance divisions.

As at 31 December 2021 the Group's loans and advances to customers totalled £2,531.9 million (66.6% of which is secured on assets and property), customer deposits totalled £2,103.2 million and the Group's total customer base was over 1.5 million customers. As these figures are as at 31 December 2021, they include 212 employees, £79.6 million in loans and advances to customers, and approximately £0.6 million customers which relate to Debt Managers (Services) Ltd (DMS). As announced, DMS agreed to sell its loan portfolio and expects, in the second half of 2022, to migrate its customers and transfer its employees to the purchaser of the portfolio. 

Secure Trust Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Secure Trust Bank PLC, One Arleston Way, Solihull, B90 4LH.

 

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