Solihull bank offloads mortgage business in £55m deal

David McCreadie
X The Business Desk

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Solihull-based Secure Trust Bank (STB) has sold its mortgage business in a deal worth £54.6m.

The bank has offloaded the portfolio of loans to Jacqali Designated Activity Company, a financing vehicle established by an unnamed global financial institution.

The net book value of the portfolio as at 31 December 2020 was £77.7m.

STB says the sale is in line with its strategy to focus on specialist lending segments offering higher yields.

David McCreadie, chief executive officer, said: “The disposal is in line with STB’s strategy of maximising value, simplifying the group and focusing on the areas of the business that have the strongest prospects for delivering sustainable and profitable medium to long-term growth. The proceeds will be used to strengthen STB’s capital position, provide additional financial flexibility to deliver its growth strategy, and ultimately enhance returns for shareholders.”