Half Year 2025 Secure Trust Bank PLC Earnings Call Transcript
Key Points
- Secure Trust Bank PLC (LSE:STB) reported a 36.3% increase in adjusted profit before tax compared to the first half of 2024.
- Net lending has grown by 1.5 billion pounds or 62% since the end of 2020, approaching the 4 billion pounds target.
- The bank's return on average equity improved to 9.6%, with core businesses generating a 13.7% return.
- Total deposit balances have grown by 1.5 billion pounds or 76% since the end of 2020.
- The bank achieved a significant 460 basis points improvement in its cost-income ratio to 49.1%.
- The decision to cease new lending in vehicle finance resulted in a loss of 4.5 million pounds in the first half of 2025.
- The cost of risk remained stable at 1.7%, but was higher than the through-the-cycle expectation.
- Vehicle Finance NIM decreased to 9.2%, down 0.3% due to business mix and average net lending balances.
- The bank anticipates a reduction in net interest margin as the vehicle finance portfolio winds down.
- The Supreme Court ruling on commissions creates uncertainty, with potential impacts on provisions pending FCA decisions.
Good morning everyone, and thank you for taking the time to join us for our 2025 interim results presentation.
This slide explains the basis of reporting in the pack.
Reference was made throughout to total adjusted results, which exclude exceptional items, as reported in our interim report for the six months ended 30th of June 2025.
Unless otherwise stated, financial metrics and key performance indicators relate to total adjusted results.
Where applicable, adjusted results and performance metrics have been split between core and non-core operations, the latter being the vehicle finance business.
A reconciliation of adjusted results to total results is included in the appendix to the presentation.
I will make some comments on our overall performance before Rachel covers off the financial results in more detail.
I'll then talk briefly about the performance against our optimizing for growth, strategic framework, comment on what has been achieved as a team in recent years, and on the exciting outlook for the group now that we have
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