Secure Trust Bank (STB) AI Stock Analysis

• Market Cap: £269.67M
• Dividend Yield: 2.66%
• Average Volume (3M): 133.08K
• Price to Earnings (P/E): 11.5
• Beta (1Y): 1.06
• Revenue Growth: 9.09%
• EPS Growth: -9.36%
• Country: UK
• Employees: 915
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.84
• Shares Outstanding: 19,097,256
• 10 Day Avg. Volume: 263,311
• 30 Day Avg. Volume: 133,079
• PEG Ratio: -0.17
• Price to Book (P/B): 0.20
• Price to Sales (P/S): 0.49
• P/FCF Ratio: -0.27
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: 1,466.00p ▲(13.64% Upside)

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.

Positive Factors

Revenue Growth Momentum

Sustained top-line expansion driven by lending and fee income supports the bank's core franchise, enabling reinvestment in products and distribution. Over the next 2–6 months, consistent revenue growth helps absorb cost pressures and underpins medium-term earnings stability.

Balanced Leverage and Asset Base

A moderate leverage profile and stable equity ratio provide resilience against funding shocks and support regulatory capital buffers. This structural balance sheet strength preserves the bank’s ability to originate loans and maintain liquidity over multiple quarters without aggressive deleveraging.

Management Insider Confidence

Material insider buying aligns management and shareholder interests and signals conviction in the bank’s strategic outlook. That alignment tends to support disciplined capital allocation and steadier execution, reducing execution risk over the medium term.

Negative Factors

Eroding Profitability and ROE

Falling ROE and compressing net margins signal weaker returns on capital and reduced ability to generate shareholder value from core lending activities. Persisting margin pressure can limit retained earnings, constrain growth initiatives and weaken long-term capital generation.

Weak Cash Conversion and Negative FCF

Poor conversion of accounting profits into cash and negative free cash flow forces reliance on external financing. Over several months this can restrict loan growth, increase funding costs, and reduce flexibility to absorb shocks or invest in higher-return initiatives.

Regulatory Redress Risk (Motor Finance)

A regulatory redress requirement in motor finance could trigger remediation costs, reserve build-ups and operational changes. These structural impacts can depress earnings, tie up capital and force underwriting adjustments that affect medium-term revenues and profitability.

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

Secure Trust Bank generates revenue primarily through interest income from its lending activities, which include personal loans and credit products. The bank charges interest on the loans it provides to customers, which typically constitutes a significant portion of its revenue. Additionally, STB earns fees from account management, overdrafts, and other banking services. The bank may also generate income through partnerships with financial service providers or through investment income from its holdings. The growth of its customer base and the management of risk in its lending portfolio are crucial factors that contribute to its overall earnings.

Secure Trust Bank Financial Statement Overview

Summary

Income statement quality is mixed (stable gross margin but declining net margin and volatile/declining revenue), the balance sheet is relatively solid with balanced leverage but weakening ROE and signs of rising leverage, and cash flow is the main weakness with negative free cash flow growth and weak cash conversion.

Income Statement

Secure Trust Bank's gross profit margin is relatively stable, reflecting consistent revenue generation. However, the net profit margin shows a declining trend due to rising costs and lower net income. Revenue growth has been volatile, with recent years showing a decline. EBIT and EBITDA margins have fluctuated, indicating inconsistent operational efficiency.

Balance Sheet

The balance sheet highlights a moderate debt-to-equity ratio, suggesting balanced leverage. However, the return on equity has decreased, indicating reduced profitability for shareholders. The equity ratio remains stable, showcasing a solid asset base relative to liabilities, but there are signs of increased leverage in the latest year.

Cash Flow

Cash flow analysis reveals negative free cash flow growth, suggesting operational cash may not be sufficient to cover capital expenditures. The operating cash flow to net income ratio is weak, indicating challenges in converting income into cash. However, financing activities have provided liquidity, partially offsetting operational cash flow deficits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	149.50M	142.10M	141.80M	219.70M	176.50M	208.30M
Gross Profit	149.50M	142.10M	321.30M	169.30M	148.80M	163.00M
EBITDA	45.70M	39.40M	-6.50M	42.30M	59.40M	22.20M
Net Income	23.60M	19.70M	24.30M	33.70M	45.60M	15.40M
Balance Sheet
Total Assets	4.29B	4.12B	3.78B	3.38B	2.89B	2.66B
Cash, Cash Equivalents and Short-Term Investments	385.90M	469.00M	400.30M	370.10M	235.70M	181.50M
Total Debt	1.64B	459.10M	495.10M	451.60M	54.00M	54.70M
Total Liabilities	3.91B	3.76B	3.43B	3.05B	2.58B	2.39B
Stockholders Equity	374.10M	360.50M	344.50M	326.90M	302.40M	270.50M
Cash Flow
Free Cash Flow	-387.60M	-262.40M	-405.30M	30.00M	-91.10M	93.70M
Operating Cash Flow	-386.70M	-261.40M	-402.60M	32.70M	-89.80M	95.60M
Investing Cash Flow	1.00M	-350.80M	-443.00M	82.50M	59.10M	23.10M
Financing Cash Flow	364.60M	331.10M	388.70M	-5.00M	101.60M	-31.60M

Secure Trust Bank Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:STB, the sentiment is Positive. The current price of 1290 is below the 20-day moving average (MA) of 1359.00, above the 50-day MA of 1171.88, and above the 200-day MA of 970.94, indicating a bullish trend. The MACD of 78.90 indicates Negative momentum. The RSI at 74.03 is Negative, neither overbought nor oversold. The STOCH value of 86.03 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:STB.

Secure Trust Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STB	68 Neutral	£269.67M	11.52	6.47%	2.66%	9.09%	-9.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LIO	64 Neutral	£145.16M	11.74	9.72%	21.31%	-15.65%	-12.27%
MTRO	62 Neutral	£896.83M	8.46	9.14%	―	-29.12%	964.19%
ARBB	59 Neutral	£141.23M	8.71	6.22%	5.68%	1.68%	-46.69%
PMI	54 Neutral	£70.07M	58.97	1.05%	11.43%	-3.99%	-36.07%
PRIM	48 Neutral	£5.00M	-8.16	-12.33%	―	―	―

Secure Trust Bank Corporate Events

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.

Secure Trust Bank Announces Current Share Capital and Voting Rights

Secure Trust Bank PLC has announced that as of 30 November 2025, its issued share capital consists of 19,093,508 ordinary shares, with no shares held in treasury. This information is crucial for shareholders as it impacts the calculation of notifiable interests under the FCA’s Disclosure Guidance and Transparency Rules, reflecting the bank’s transparency and regulatory compliance.

The most recent analyst rating on (GB:STB) stock is a Hold with a £1009.00 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 Announces Board Changes with Retirement of Ann Berresford

Secure Trust Bank PLC has announced the retirement of Ann Berresford from the Board, effective 30 December 2025, after her nine-year tenure. Ann has significantly contributed to the strategic development of the Group, serving as Chair of the Audit Committee, Senior Independent Director, and a member of the Risk Committee. The Board has implemented succession plans, appointing Steve Colsell as the new Chair of the Audit Committee and Julie Hopes as the Senior Independent Director and Deputy Chair, both subject to regulatory approval. These changes are expected to maintain the strategic direction and governance standards of the company.

The most recent analyst rating on (GB:STB) stock is a Hold with a £1009.00 price target. To see the full list of analyst forecasts on Secure Trust Bank stock, see the GB:STB Stock Forecast page.