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Secure Trust Bank (GB:STB)
:STB
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Secure Trust Bank (STB) AI Stock Analysis

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GB:STB

Secure Trust Bank

(LSE:STB)

Rating:76Outperform
Price Target:
1,147.00p
▲(14.70%Upside)
Secure Trust Bank's strong technical momentum and strategic corporate actions provide a positive outlook, outweighing existing financial performance and valuation challenges. The company's focus on restructuring and leadership confidence further bolsters its growth potential, making it an attractive prospect despite current profitability and cash flow challenges.

Secure Trust Bank (STB) vs. iShares MSCI United Kingdom ETF (EWC)

Secure Trust Bank Business Overview & Revenue Model

Company DescriptionSecure 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 MoneySecure Trust Bank makes money through multiple revenue streams centered around its diverse banking products and services. The bank earns interest income from loans and mortgages provided to individuals and businesses. It also generates revenue from fees and charges associated with its banking services, such as transaction fees, account maintenance fees, and penalty charges for late payments. Additionally, STB benefits from partnerships with retailers and other financial institutions to offer point-of-sale finance solutions, which contributes to its earnings through interest and service fees. The bank's approach to targeting niche markets and maintaining strong customer relationships plays a significant role in its profitability.

Secure Trust Bank Financial Statement Overview

Summary
Secure Trust Bank shows stability in revenue generation, but profitability margins are under pressure. The balance sheet maintains a balanced leverage position, though recent trends suggest rising debt levels. Cash flow challenges, particularly in free cash flow, indicate potential liquidity issues despite adequate financing inflows.
Income Statement
65
Positive
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
70
Positive
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
55
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue142.10M141.80M170.40M164.50M163.00M
Gross Profit142.10M321.30M170.40M164.50M163.00M
EBITDA39.40M-6.50M42.30M59.40M-2.00M
Net Income19.70M24.30M33.70M45.60M15.40M
Balance Sheet
Total Assets4.12B3.78B3.38B2.89B2.66B
Cash, Cash Equivalents and Short-Term Investments469.00M400.30M370.10M235.70M181.50M
Total Debt459.10M495.10M53.20M54.00M54.70M
Total Liabilities3.76B3.43B53.20M54.00M54.70M
Stockholders Equity360.50M344.50M326.90M302.40M270.50M
Cash Flow
Free Cash Flow-262.40M-405.30M30.00M-91.10M93.70M
Operating Cash Flow-261.40M-402.60M32.70M-89.80M95.60M
Investing Cash Flow-350.80M-443.00M82.50M59.10M23.10M
Financing Cash Flow331.10M388.70M-5.00M101.60M-31.60M

Secure Trust Bank Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1000.00
Price Trends
50DMA
807.06
Positive
100DMA
674.82
Positive
200DMA
558.02
Positive
Market Momentum
MACD
64.26
Negative
RSI
79.43
Negative
STOCH
75.53
Neutral
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 1000 is above the 20-day moving average (MA) of 921.15, above the 50-day MA of 807.06, and above the 200-day MA of 558.02, indicating a bullish trend. The MACD of 64.26 indicates Negative momentum. The RSI at 79.43 is Negative, neither overbought nor oversold. The STOCH value of 75.53 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (70)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
£1.86B9.5214.68%424.34%27.88%28.92%
76
Outperform
£186.39M9.725.59%280.59%19.89%-19.56%
76
Outperform
£278.35M12.5112.03%251.62%20.20%6.12%
71
Outperform
£153.37M9.466.22%522.67%15.14%-31.65%
70
Neutral
€15.46B11.9314.88%5.80%7.27%0.39%
68
Neutral
£872.35M20.513.67%-11.82%-54.07%
65
Neutral
£252.44M-127.10%-20.62%-44.96%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:STB
Secure Trust Bank
1,000.00
220.75
28.33%
GB:PAG
Paragon Banking Group PLC
961.50
203.63
26.87%
GB:MTRO
Metro Bank
129.60
89.60
224.00%
GB:ARBB
Arbuthnot Banking
937.50
-4.76
-0.51%
GB:SAGA
Saga plc
177.20
67.80
61.97%
GB:HAT
H&T Group plc
644.00
275.28
74.66%

Secure Trust Bank Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
Secure Trust Bank Announces Change in Major Holdings
Neutral
Jul 10, 2025

Secure Trust Bank PLC has announced a change in major holdings, with Ennismore Fund Management Limited adjusting its voting rights in the bank. The notification indicates that Ennismore’s voting rights have decreased from 6.26% to 5.96%, impacting the bank’s shareholder structure. This adjustment reflects Ennismore’s strategic decisions and could influence the bank’s governance and future decision-making processes.

Executive/Board ChangesBusiness Operations and Strategy
Secure Trust Bank CEO Designate Invests in Company Shares
Positive
Jul 9, 2025

Secure Trust Bank PLC announced that Ian Corfield, the CEO Designate, has purchased a total of 11,287 ordinary shares in the company. This move reflects confidence in the bank’s future prospects and may positively influence stakeholder perceptions, reinforcing the leadership’s commitment to the company’s growth and stability.

Private Placements and FinancingBusiness Operations and Strategy
Secure Trust Bank Chair-Linked Entity Acquires Significant Shares
Positive
Jul 7, 2025

Secure Trust Bank PLC announced that Kiripaka Capital Limited, closely associated with Jim Brown, Chair of STB, purchased 24,723 ordinary shares of the company at £8.692196 per share on July 3, 2025. This transaction highlights confidence in the company’s financial health and future prospects, potentially impacting stakeholder perceptions and market positioning.

Business Operations and Strategy
Strategic Share Acquisitions by Secure Trust Bank Leadership
Positive
Jul 4, 2025

Secure Trust Bank PLC announced that Kiripaka Capital Limited, associated with Jim Brown, Chair of STB, purchased 3,525 ordinary shares at £8.48 each. Additionally, Mary Hartley, associated with Julian Hartley, a PDMR of the company, acquired 13,847 shares at £8.62 each. These transactions, conducted on the London Stock Exchange, reflect strategic share acquisitions by individuals closely linked to the bank’s leadership, potentially indicating confidence in the company’s future performance.

Business Operations and StrategyFinancial Disclosures
Secure Trust Bank PLC Announces Strategic Shift to Boost ROAE
Positive
Jul 2, 2025

Secure Trust Bank PLC has announced a strategic shift to cease new lending in its Vehicle Finance business, which has been underperforming compared to other divisions. This move is expected to enhance the bank’s Return on Average Equity (ROAE) and streamline operations by reducing operating costs significantly. The decision will impact 284 roles by 2030, with restructuring costs estimated at £5.0 million. The bank plans to reallocate capital to its more profitable Retail, Real Estate, and Commercial Finance divisions, aiming to achieve a £4 billion net lending target and improve its ROAE to 14-16%.

Regulatory Filings and Compliance
Secure Trust Bank Announces Total Voting Rights and Capital Structure
Neutral
Jul 1, 2025

Secure Trust Bank PLC announced that as of 30 June 2025, its issued share capital consists of 19,073,729 ordinary shares, with no shares held in treasury. This results in a total of 19,073,729 voting rights, which shareholders should use as the denominator for calculating notifiable interests under the FCA’s rules. This announcement provides transparency and clarity for stakeholders regarding the company’s capital structure and voting rights.

Executive/Board ChangesBusiness Operations and Strategy
Secure Trust Bank Announces CEO Succession with Ian Corfield Set to Lead
Positive
Jun 17, 2025

Secure Trust Bank has announced a CEO succession plan with David McCreadie set to retire after over four years as CEO. Ian Corfield, with extensive experience in financial services, will take over as CEO in August 2025. McCreadie has significantly contributed to the bank’s growth and transformation, while Corfield is expected to continue driving innovation and growth. This transition aims to ensure consistent leadership and strategic development for the bank, with a focus on enhancing returns and delivering value to stakeholders.

Dividends
Secure Trust Bank PLC PDMR Share Acquisition
Positive
Jun 16, 2025

Secure Trust Bank PLC announced that Andrew Phillips, a Person Discharging Managerial Responsibilities (PDMR), has acquired 24 ordinary shares of the company through an automated Dividend Reinvestment Plan at a price of £7.505 per share. This transaction, conducted on 13 June 2025 at the London Stock Exchange, reflects internal confidence in the company’s performance and could potentially influence stakeholder perceptions positively.

Executive/Board Changes
Secure Trust Bank Appoints Steve Colsell as Non-Executive Director
Positive
Jun 12, 2025

Secure Trust Bank PLC has appointed Steve Colsell as an independent Non-Executive Director and member of the Audit and Nomination Committees. With 40 years of experience in financial services, Colsell’s extensive background in banking and insurance, along with his strategic mindset and leadership skills, are expected to enhance the board’s capabilities and deliver value for stakeholders.

Regulatory Filings and Compliance
Secure Trust Bank Updates Share Capital and Voting Rights
Neutral
May 30, 2025

Secure Trust Bank PLC has announced that as of 30 May 2025, its issued share capital consists of 19,072,078 ordinary shares, with no shares held in treasury. This update is crucial for shareholders as it determines the total number of voting rights, which is essential for calculating notifiable interests under the FCA’s Disclosure Guidance and Transparency Rules.

Shareholder MeetingsDividendsBusiness Operations and Strategy
Secure Trust Bank PLC Announces Successful 2025 AGM Resolutions
Positive
May 15, 2025

Secure Trust Bank PLC announced the successful passing of all resolutions at its 2025 Annual General Meeting, reflecting strong shareholder support. Key resolutions included the adoption of the 2024 Report and Accounts, approval of a final dividend, and various director elections and re-elections. The resolutions, including those authorizing share allotments and market purchases, signify strategic moves to strengthen the bank’s operational capabilities and market positioning.

Business Operations and StrategyFinancial Disclosures
Secure Trust Bank Reports Strong Q1 2025 Growth and Strategic Progress
Positive
May 15, 2025

Secure Trust Bank PLC has reported a positive trading update for Q1 2025, showing continued growth in net lending, which increased by 3.2% over the quarter and 10.5% year-on-year, nearing its £4 billion target. Customer deposits also rose by 3.9% in the quarter, supporting lending objectives, and the bank has made significant progress in reducing defaulted loans in Vehicle Finance. The completion of a debt sale and implementation of a new operating model are expected to yield £8 million in annualized cost savings, positioning the bank for future growth despite global market uncertainties.

Other
Secure Trust Bank PLC Announces Executive Share Transactions
Neutral
Apr 25, 2025

Secure Trust Bank PLC announced recent transactions involving key personnel, including Chris Harper and Rachel Lawrence, who engaged in ‘Bed and ISA’ transactions. These transactions involved selling and repurchasing ordinary shares to facilitate tax-efficient investments. The transactions were conducted on the London Stock Exchange, with some shares sold to cover transaction costs. This activity highlights the company’s ongoing efforts to manage executive shareholdings efficiently, potentially impacting shareholder perceptions and market confidence.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 18, 2025