Secure Trust Bank (STB) AI Stock Analysis

• Market Cap: £231.51M
• Dividend Yield: 2.66%
• Average Volume (3M): 133.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• Revenue Growth: 9.09%
• EPS Growth: -9.36%
• Country: UK
• Employees: 915
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.05
• Shares Outstanding: 19,104,956
• 10 Day Avg. Volume: 263,311
• 30 Day Avg. Volume: 133,079
• PEG Ratio: 2.83
• Price to Book (P/B): 0.62
• Price to Sales (P/S): 0.69
• P/FCF Ratio: 1.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.46
• Revenue Forecast (FY): £188.00M

• Rating: 54 Neutral
• Price Target: 1,423.00 p ▲(10.31% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is held back primarily by weakened financial performance (2025 net loss and historically volatile cash flow quality) and bearish technical momentum (below key moving averages with negative MACD). These are partially offset by a very low P/E and a modest dividend yield, which make the valuation attractive if profitability stabilizes.

Positive Factors

Strong recent revenue growth

A large revenue increase in 2025 signals expanding lending volumes or pricing power in core specialist lending lines. Sustained top-line growth materially boosts net interest income potential and scale economics, improving the bank's ability to absorb credit shocks and reinvest in origination capacity.

Improving capital structure

Reduced debt and higher equity bolster solvency and regulatory headroom, lowering funding risk and interest burden. A stronger capital base enhances strategic flexibility to support lending growth and withstand cyclical credit losses over the medium term without resorting to dilutive equity raises.

Deposit-funded savings franchise

A retail deposit franchise provides a stable, lower-cost funding mix versus wholesale alternatives, supporting durable net interest margins. Long-term access to customer deposits reduces reliance on volatile markets and underpins the bank's lending model and resilience across rate cycles.

Negative Factors

Profitability volatility

A swing to a net loss after recent profitability highlights earnings instability, which weakens internal capital generation and constrains strategic investment. Persistent volatility undermines confidence in sustainable returns and may force conservative lending or provisioning that limits medium-term growth.

Inconsistent cash generation

Irregular operating and free cash flows across multiple years complicate capital allocation and dividend predictability. Even with a 2025 rebound, inconsistent cash conversion raises the risk that funding or reinvestment needs will require external financing during stress periods.

Historic elevated leverage

A history of leverage above equity increases vulnerability to earnings shocks or asset-quality deterioration. Even with recent debt reduction, the legacy leverage footprint implies reduced margin for error and greater sensitivity to credit cycles when compared with lower-levered regional peers.

Secure Trust Bank Business Overview & Revenue Model

Company Description

Secure Trust Bank PLC provides banking and financial products and services in the United Kingdom. It operates through Real Estate Finance, Commercial Finance, Vehicle Finance, Retail Finance, and Debt Management segments. The Real Estate Finance segment provides loans for residential and commercial investment and development, as well as for mixed development projects. The Commercial Finance segment provides invoice financing solutions, including invoice discounting and factoring, and coronavirus business interruption loan scheme finance to businesses. The Vehicle Finance segment provides hire purchase agreements secured against the vehicle being financed. This segment distributes its motor finance products through motor dealers, brokers, and Internet introducers. The Retail Finance segment offers point of sale unsecured finance for in-store and online retailers under the V12 brand. This segment serves retailers of various industries, including cycle, music, furniture, outdoor/leisure, electronics, dental, jewelry, home improvements, and football season tickets. The Debt Management segment provides debt collection services. It also provides property rental and leasing services. Secure Trust Bank PLC was founded in 1952 and is headquartered in Solihull, the United Kingdom.

How the Company Makes Money

STB primarily makes money through net interest income: it earns interest on loans and other interest-earning assets and pays interest on customer deposits and other funding, with the spread (net interest margin) forming a core revenue stream. On the lending side, revenue is generated from interest charged on specialist lending products (including consumer finance and other niche lending where it participates), and may also include lending-related fees (e.g., product, arrangement, or servicing fees) where applicable. On the savings side, it attracts deposits via savings accounts; these deposits provide funding that can be deployed into higher-yielding lending assets, while STB pays depositors an interest rate that is typically lower than the yield earned on loans, supporting the interest spread. In addition to interest income, STB can generate non-interest income from fees and commissions linked to originating, underwriting, administering, or servicing its products. Overall earnings are influenced by funding mix (retail deposits vs. wholesale funding), credit performance (impairments on loans), and the pricing environment (market interest rates affecting both asset yields and deposit costs). Specific significant partnerships or counterparty arrangements: null.

Secure Trust Bank Financial Statement Overview

Summary

Financials are mixed and currently weaker: 2025 revenue jumped to 339.1M but profitability flipped to a -9.4M net loss (from +19.7M in 2024). Cash flow rebounded strongly in 2025 (operating cash flow 156.4M; free cash flow 154.8M) after prior-year outflows, but multi-year cash generation has been inconsistent. Leverage improved with debt down and equity up, though prior periods showed elevated debt relative to equity.

Income Statement

Results have deteriorated materially: 2025 revenue surged to 339.1M (very high growth versus 2024), but profitability flipped to a -9.4M net loss versus +19.7M profit in 2024. Prior years (2020–2024) were generally profitable with healthy net margins in 2021–2024, but the 2025 loss suggests either elevated costs/credit pressure or other profitability headwinds despite stronger top-line performance. Overall, the earnings profile looks volatile and currently weaker.

Balance Sheet

The balance sheet shows meaningful leverage for a regional bank, but with some recent improvement. Total debt declined to 302.6M in 2025 from 459.1M in 2024, while equity rose to 374.3M, supporting the capital base. However, prior periods showed debt running above equity (debt-to-equity around 1.27–1.44 in 2022–2024), which increases sensitivity to earnings swings and asset-quality stress. Asset size has grown steadily (to 4.32B in 2025), but the leverage history keeps the score mid-range.

Cash Flow

Cash generation has been inconsistent. 2025 shows strong positive operating cash flow (156.4M) and free cash flow (154.8M), a sharp reversal from large outflows in 2023–2024. That said, free cash flow growth is deeply negative in 2025, reflecting a swing from the prior year rather than stable compounding, and several years show negative operating/free cash flow despite positive reported profits (notably 2021, 2023, and 2024). Overall cash flow quality and predictability remain a key concern even with the 2025 rebound.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	339.10M	142.10M	141.80M	219.70M	176.50M
Gross Profit	107.70M	142.10M	321.30M	169.30M	148.80M
EBITDA	29.40M	39.40M	-6.50M	42.30M	59.40M
Net Income	-9.40M	19.70M	24.30M	33.70M	45.60M
Balance Sheet
Total Assets	4.32B	4.12B	3.78B	3.38B	2.89B
Cash, Cash Equivalents and Short-Term Investments	528.10M	469.00M	400.30M	370.10M	235.70M
Total Debt	302.60M	459.10M	495.10M	451.60M	54.00M
Total Liabilities	3.94B	3.76B	3.43B	3.05B	2.58B
Stockholders Equity	374.30M	360.50M	344.50M	326.90M	302.40M
Cash Flow
Free Cash Flow	154.80M	-262.40M	-405.30M	30.00M	-91.10M
Operating Cash Flow	156.40M	-261.40M	-402.60M	32.70M	-89.80M
Investing Cash Flow	-165.90M	-350.80M	-443.00M	82.50M	59.10M
Financing Cash Flow	100.30M	331.10M	388.70M	-5.00M	101.60M

Secure Trust Bank Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1290.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:STB, the sentiment is Negative. The current price of 1290 is below the 20-day moving average (MA) of 1414.00, below the 50-day MA of 1432.90, and above the 200-day MA of 1117.06, indicating a neutral trend. The MACD of -44.46 indicates Positive momentum. The RSI at 28.10 is Positive, neither overbought nor oversold. The STOCH value of 12.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:STB.

Secure Trust Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LIO	64 Neutral	£146.12M	11.47	9.72%	21.31%	-15.65%	-12.27%
ARBB	59 Neutral	£139.61M	5.59	6.10%	5.68%	1.68%	-46.69%
STB	54 Neutral	£231.51M	-24.74	4.70%	2.66%	9.09%	-9.36%
PMI	54 Neutral	£68.51M	80.13	1.07%	11.43%	-3.99%	-36.07%
PRIM	48 Neutral	£4.50M	-1.85	-12.33%	―	―	―
MTRO	47 Neutral	£743.39M	11.65	5.16%	―	-29.12%	964.19%

Secure Trust Bank Corporate Events

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

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.

Secure Trust Bank Updates Market on Share Capital and Voting Rights

Secure Trust Bank has confirmed that as of 28 February 2026 its issued share capital comprises 19,104,955 ordinary shares, with no shares held in treasury, giving a total of 19,104,955 voting rights. This updated share capital and voting rights figure sets the reference point shareholders must use when calculating notifiable interests or changes in their holdings under UK disclosure and transparency rules, ensuring clarity for investors and regulatory compliance.

The most recent analyst rating on (GB:STB) stock is a Buy with a £1720.00 price target. To see the full list of analyst forecasts on Secure Trust Bank stock, see the GB:STB Stock Forecast page.

Secure Trust Bank completes sale of Consumer Vehicle Finance arm

Secure Trust Bank has completed the sale of its Consumer Vehicle Finance business to funds managed by LCM Partners, following previously announced plans to exit this segment. The disposal streamlines the group’s consumer finance activities and marks a further shift toward its core lending franchises, with more detail on capital allocation and updated medium‑term targets due alongside full‑year 2025 results on 12 March 2026.

The most recent analyst rating on (GB:STB) stock is a Buy with a £1720.00 price target. To see the full list of analyst forecasts on Secure Trust Bank stock, see the GB:STB Stock Forecast page.

Secure Trust Bank lifts profits and capital as vehicle finance sale boosts firepower

Secure Trust Bank reported that adjusted profit before tax for 2025 was in line with consensus at £51.1m, more than 30% higher year-on-year, as total net lending rose to £3.7bn and continuing operations grew their loan book by 8.1%. Retail Finance and Real Estate Finance delivered strong growth, customer deposits increased 8.2% to support lending expansion, and the bank’s CET1 capital ratio improved to 12.9%, even after accounting for provisions linked to potential motor finance redress. The group confirmed that the sale of its Consumer Vehicle Finance business to funds managed by LCM Partners is progressing on the previously announced terms, with an expected net gain on sale of £9m and a pro forma uplift in the CET1 ratio to 14.7%, freeing up capital to reinvest in higher-return core businesses, deepen market penetration and potentially support additional shareholder distributions, while STB retains responsibility for administering any future redress on the sold loan portfolio. The Vehicle Finance arm will be treated as a discontinued operation in the 2025 accounts, with STB continuing to service the loans for the buyer until migration in May 2026, and the bank plans to outline updated strategic ambitions, capital allocation plans and new medium‑term targets alongside full‑year results in March.

The most recent analyst rating on (GB:STB) stock is a Buy with a £1720.00 price target. To see the full list of analyst forecasts on Secure Trust Bank stock, see the GB:STB Stock Forecast page.

Secure Trust Bank Confirms Total Voting Rights and Share Capital

Secure Trust Bank PLC has confirmed that, as at 31 January 2026, its issued share capital comprises 19,099,513 ordinary shares of 40p each, with no shares held in treasury, giving a total of 19,099,513 voting rights. This disclosure clarifies the denominator shareholders should use when calculating notifiable interests under UK transparency rules, providing an updated reference point for investors and regulators in monitoring significant shareholdings and corporate governance at the bank.

The most recent analyst rating on (GB:STB) stock is a Buy with a £1691.00 price target. To see the full list of analyst forecasts on Secure Trust Bank stock, see the GB:STB Stock Forecast page.

Secure Trust Bank CEO Increases Stake with £0.5m Share Purchase

Secure Trust Bank PLC has disclosed that its CEO, Ian Corfield, has purchased a total of 38,617 ordinary shares in the bank over two consecutive days in early January, with 19,419 shares acquired on 5 January 2026 at an average price of £12.808 and a further 19,198 shares bought on 6 January 2026 at an average price of £12.956, all on the London Stock Exchange. The purchases, formally notified as dealings by a person discharging managerial responsibilities, increase the chief executive’s personal stake in the business and may be read by investors as a vote of confidence in the bank’s current valuation and strategic direction amid its ongoing focus on diversified business and consumer finance lending.

The most recent analyst rating on (GB:STB) stock is a Buy with a £1138.00 price target. To see the full list of analyst forecasts on Secure Trust Bank stock, see the GB:STB Stock Forecast page.

Secure Trust Bank Confirms Total Voting Rights Ahead of Year-End

Secure Trust Bank has confirmed that, as of 31 December 2025, its issued share capital stands at 19,097,256 ordinary shares of 40p each, with no shares held in treasury. This establishes the total number of voting rights at 19,097,256, a key reference point for shareholders calculating notifiable interests and any changes in holdings under UK disclosure and transparency rules, reinforcing clarity and regulatory compliance in the bank’s shareholder base.

The most recent analyst rating on (GB:STB) stock is a Buy with a £1138.00 price target. To see the full list of analyst forecasts on Secure Trust Bank stock, see the GB:STB Stock Forecast page.

Secure Trust Bank Sells Consumer Vehicle Finance Arm to Boost Capital and Refocus Strategy

Secure Trust Bank has agreed to sell its Consumer Vehicle Finance business, including its portfolio of hire purchase and personal contract purchase loans and the Moneyway brand, to funds managed by LCM Partners for an estimated £458.6 million, a premium to book value, with completion expected in the first quarter of 2026. The deal will accelerate the bank’s previously announced exit from new vehicle finance lending, generate a small gain on sale, and materially strengthen its capital position by lifting its pro forma CET1 ratio by around 195 basis points to 14.8%, freeing up capital for higher-return core activities and potential shareholder distributions while STB continues to service the portfolio for a period and retains liability for any future FCA motor finance commission redress on relevant loans; the board views the move as a strategically significant step to improve returns on equity and refocus the bank on its core lending franchises.

The most recent analyst rating on (GB:STB) stock is a Buy with a £1138.00 price target. To see the full list of analyst forecasts on Secure Trust Bank stock, see the GB:STB Stock Forecast page.