Lower-risk lending boosts bank’s profits
Secure Trust Bank has increased pre-tax profits by more than 30%, boosted by lower risk lending and growth across the business.
The stock market-listed company has repositioned its business model towards lower risk lending in attractive market segments, reducing impairment losses, and has continued to achieve growth in both business finance and consumer finance.
Earlier this year Secure Trust Bank Commercial Finance opened an office in Birmingham as part of its expansion plans. Headed up by regional managing director David Parsons, the office works across the Midlands as well as with businesses across Wales and the South West.
Pre-tax profits reached £15.1m in the six months to June, while operating income increased 19% to £72.5m
Paul Lynam, chief executive of Secure Trust Bank, said: “During 2016 and 2017 we repositioned our business away from higher risk, higher income consumer credit activities and reallocated capital to lower risk lending segments across a focused selection of attractive market segments.
“The growth of more than 36% in underlying profits before tax reported today clearly shows the benefits of this decision.
“Balance sheet and customer numbers have grown strongly in the first six months of 2018 as we have invested our capital.
“We remain well positioned to continue developing our business model in line with our ambitions, creating sustainable value for our consumer and SME customers, our people and our shareholders.”