Record profit recorded by challenger bank Secure Trust
SOLIHULL’s Secure Trust Bank has seen its profit leap by nearly 50% on a year-on-year basis.
Announcing its interim results for the six months to June 30, the bank revealed it had achieved underlying profit before tax of £15.2m, up 48% compared with the same period last year (H1 2013: £10.3m).
It suggested the benefits of its previous acquisitions, strong controlled growth in the lending book and the entry into SME markets have contributed to a new record level of underlying profit.
The bank’s overall loan book increased to £447.8m, a 22% increase on H1 2013’s figure of £365.8m, while customer deposits increased to £476.8m, a 23% increase on H1 2013’s £386.7m figure.
Total customer numbers increased to 391,610, a 20% increase on H1 2013’s 325,052 figure.
Secure Trust Bank said that its real estate team has been established with
a substantial pipeline of business opportunities being worked on and that its invoice finance team has been recruited and business is due to commence in Q3.
Paul Lynam, chief executive officer, said: “Our robust results for H1 2014 clearly demonstrate the growth potential of the ‘challenger banks’ sector and Secure Trust Bank in particular.
“As the economy recovers, we have written record levels of new loans, without compromising our standards. This growth in lending balances, coupled with lower levels of impairments and tight control of costs has resulted in a new record for underlying profits for the six month period.
The performance and continued growth of our consumer finance portfolios is encouraging and the recent successful completion of a substantial capital raise means we can now diversify into SME lending activities in a meaningful way, building on the expertise and experience that the bank has in this sector.
“We have continued to position the bank to capitalise on the significant opportunities available to it, in a controlled and prudent manner, and we look forward to the future with confidence.”