Secure Trust banks record profits but issues cautionary note about referendum

THE EU referendum has caused challenger bank Secure Trust to delay its plans to enter the mortgage market, but it remains upbeat about the prospects for the year after unveiling record profits.

The Solihull-based bank increased pre-tax profits by 40% to £36.5m on the bank of significant growth in the business in 2015.

Lending balances increased by 73%, taking it above £1bn, while the number of customers grew by one-third, to 570,000.

Secure Trust’s chief executive Paul Lynam believes the bank “is extremely well positioned to make further positive progress during 2016”.

However he added a cautionary note about the forthcoming June referendum, forecasting “considerable uncertainty” in the run up to the vote.

“We are adopting a more cautious stance ahead of the referendum, and only plan to enter the mortgage market in the second half of this year,” he added.

Secure Trust sold its Everyday Loans Group in December, which will contribute £115m post-tax profit to its 2016 figures. Its SME division also had its first full year of operation during the financial year, making a “material contribution to profits”.