Income hike at challenger bank Secure Trust as it starts lending to SMEs
SOLIHULL’S Secure Trust Bank has seen a dramatic increase in income following strategic acquisitions and its entry into the SME lending market.
Announcing its results for the six months to June 30, the bank revealed operating income for the period had more than doubled to £36.3m (H1 2012: £16.9m).
And the bank achieved 37% growth in underlying profit before tax (to £10.3m) compared with the same period last year (£7.5m).
However, reported profit before tax was down at £6.2m (H1 2012: £12.4m) partly because of a number of acquisitions it had made.
During the six month period the bank acquired V12 Finance Group and Debt Managers and started SME lending activities.
Secure Trust said its core lending business continue to demonstrate strong, controlled growth and the loan book is performing in line with expectations.
Customer deposits increased to £386.7m, a 30% increase on H1 2012’s £297.9m figure.
Total customer numbers increased to 325,052, a 64% increase on H1 2012 (198,767).
The acquisition of V12 Retail Finance Group contributed £33m of loans
Chief executive officer Paul Lynam said: “The increasing number of customers we serve across all parts of the bank and the net increase in our lending provides evidence of the clear opportunity that exists for so called ‘challenger banks’ like Secure Trust Bank.
“We continue to exercise firm risk management discipline and would not compromise our standards simply to achieve growth. The benefits of this approach and the contributions from acquired businesses are reflected in the very healthy growth in our underlying profits.
“With our acceptance into the Funding for Lending scheme, strong demand for our products, and new markets being opened up, we look forward to the future with confidence.”
