Secure Trust Bank sets higher-return growth targets after simplifying business and strengthening capital

Secure Trust Bank ( (GB:STB) ) just unveiled an announcement.

Secure Trust Bank reported resilient 2025 results, with continuing profit before tax broadly flat at £59.3m, net lending up 8.1% to £3.3bn and customer deposits up 8.2% to £3.5bn. The bank improved its cost-income ratio to 45.2%, kept net interest margin stable at 4.7%, strengthened its CET1 ratio to 12.9% and, aided by the sale of its Consumer Vehicle Finance business, lifted tangible book value and increased the total dividend to 35.5p per share, alongside launching a £10m share buyback.

Operationally, the group completed its cost-optimisation Project Fusion, delivering around £8m in annualised savings and further simplifying its structure by exiting new vehicle finance lending and selling the Consumer Vehicle Finance arm. It also grew Retail Finance market share to 15.5%, invested in digital channels, and increased provisions for potential motor finance consumer redress to £21.5m amid evolving FCA expectations.

Strategically, Secure Trust Bank has pivoted to a streamlined model built around Retail Finance and Business Finance, with Savings as a funding platform and a focus on “targeted growth for higher returns.” Management set new medium-term targets of around 10% annual net lending growth and return on average equity above 16%, underpinned by product expansion into adjacent niches, scalable digital solutions, and strict capital and cost discipline, including an ambition to bring the cost-income ratio down to 35–40% over time.

The most recent analyst rating on (GB:STB) stock is a Hold with a £1455.00 price target. To see the full list of analyst forecasts on Secure Trust Bank stock, see the GB:STB Stock Forecast page.

Spark’s Take on GB:STB Stock

According to Spark, TipRanks’ AI Analyst, GB:STB is a Neutral.

The score is driven mainly by moderate financial performance (profitability pressure and weak cash flow despite a relatively balanced balance sheet). Technicals are strong with price well above moving averages and positive MACD, but momentum indicators are very elevated (RSI/Stoch), tempering the technical score. Valuation is supportive with a modest P/E and a ~2.12% dividend yield.

To see Spark’s full report on GB:STB stock, click here.

More about Secure Trust Bank

Secure Trust Bank is a UK-based specialist bank focused on retail and business lending, supported by a savings division. Its core activities include Retail Finance, such as point-of-sale lending through a broad retail partner network, and Business Finance, including real estate and commercial finance, funded by a growing customer deposit base.

Average Trading Volume: 69,908

Technical Sentiment Signal: Buy

Current Market Cap: £263.2M

See more data about STB stock on TipRanks’ Stock Analysis page.