Secure Trust Bank plc
Secure Trust Bank PLC is a UK specialist bank providing savings accounts and lending services to around 1.5 million customers, operating exclusively in the UK across Consumer Finance (Retail Finance point-of-sale lending; Vehicle Finance, exited in 2025) and Business Finance (Real Estate Finance, Commercial Finance), funded by retail Savings deposits. It has been operating for over 70 years and is listed on the London Stock Exchange.
10 annual reports read, FY2016 to FY2025
Open a year to see what its report said. Every line in it carries the page it was read from.
Sources: Companies House (3), FCA NSM (7)
FY2026Next report expected 28 Mar 2027
- Open the reportJSONComing soonSixty seconds on the FY2025 report
Secure Trust Bank PLC is a UK specialist bank that takes savings deposits and lends to shoppers and businesses. Interest earned on lending in the businesses it is keeping, after paying savers, rose to £151.1m. Profit before tax fell to £27.5m from £29.2m. The main reason was leaving vehicle finance, which stopped new lending in July 2025 and was sold in February 2026. The bank set aside an extra £16.4m to compensate past car-loan customers over historic commissions and booked £5.0m of exit costs. Losses on bad loans also rose, partly because of two older property development loans. Cash at the year end was £559.8m, against borrowings of £299.4m. The bank raised very little from shareholders, issuing new shares only through staff schemes. The proposed dividend for the year rises to 35.5p a share from 33.8p. Management aims for about 10% yearly growth in the businesses it is keeping, but warns of uncertainty from global conflict, inflation and interest rates. The auditor raised no doubt about the bank's ability to keep operating. The report warns that the car-loan compensation could cost a further £6m if the regulator's scheme goes ahead as proposed.
From the reportevery line sits on the page it namesWhat drove revenueRetail Finance point-of-sale consumer lending via c.900 retail partners (furniture, dental, jewellery, leisure)
Net lending grew 9.1% to £1,407.0m (2024: £1,289.7m); new business market share of 15.5% (2024: 13.6%)
page 9AndReal Estate Finance secured lending to landlords/property developers
Record new business of £451.0m written in the year; average loan-to-value 57.3%
page 24What moved the margintailwindNet interest margin held at 4.7% via pricing discipline amid falling Bank of England base rate
NIM 4.7% (2024: 4.7%) despite four base rate cuts to 3.75%
page 17AndtailwindCost optimisation (Project Fusion) delivering c.£8m annualised savings
Adjusted cost:income ratio improved 120bps to 45.2% (2024: 46.4%)
page 18What management saidChair: strategic decisions taken will support sustainable growth, deliver improved performance and increased return on equity; macroeconomic outlook remains uncertain with muted UK growth and significant geopolitical uncertainty
page 9After the year endSale of the Consumer Vehicle Finance business completed on 25 February 2026; the Group will service the loan portfolio on behalf of the purchaser until a target migration date of 30 May 2026 and retains liability for motor finance commission redress payments on the relevant loans
page 196The dividendProgressive dividend policy (dividends will not reduce year-on-year), effective from the 2024 AGM. Proposed final dividend of 23.7p per share (2024: 22.5p), taking total 2025 dividend to 35.5p per share (2024: 33.8p); final dividend payable 21 May 2026 to shareholders on the register at 24 April 2026
page 18Going concern and the auditAuditor Deloitte LLP gave an unqualified ('true and fair view') audit opinion on the FY2025 Group and Parent Company financial statements, with no material uncertainty identified regarding going concern. Two key audit matters were identified: (1) impairment of loans and advances to customers (ECL allowance £89.5m against £3,776.1m gross loans), and (2) regulatory and litigation matters. Group materiality was £2.8m (0.75% of net assets). Directors adopted the going concern basis, assessing viability over a five-year horizon to 31 December 2030
page 137The risks it names first- Credit risk — losses from failure of customers/clients to honour obligations, with Vehicle Finance cure rates below historic norms and Real Estate Finance provisions increasing due to longer-than-expected defaulted balancesp.34
- Liquidity and Funding risk — inability to meet obligations as they fall due or only at excessive costp.35
- Capital risk — insufficient capital resources to meet minimum regulatory requirements/support growthp.36
- Market risk — interest rate and FX exposure from asset/liability repricing mismatches and customer optionalityp.37
Read from C001163-AR-2025-ch.
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