Latest news with #SecureTrustBank
Yahoo
07-07-2025
- Business
- Yahoo
Those who invested in Secure Trust Bank (LON:STB) five years ago are up 61%
If you buy and hold a stock for many years, you'd hope to be making a profit. Furthermore, you'd generally like to see the share price rise faster than the market. Unfortunately for shareholders, while the Secure Trust Bank PLC (LON:STB) share price is up 26% in the last five years, that's less than the market return. But if you include dividends then the return is market-beating. Looking at the last year alone, the stock is up 13%. With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During five years of share price growth, Secure Trust Bank actually saw its EPS drop 9.3% per year. The strong decline in earnings per share suggests the market isn't using EPS to judge the company. The falling EPS doesn't correlate with the climbing share price, so it's worth taking a look at other metrics. On the other hand, Secure Trust Bank's revenue is growing nicely, at a compound rate of 3.3% over the last five years. It's quite possible that management are prioritizing revenue growth over EPS growth at the moment. You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values). We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. So it makes a lot of sense to check out what analysts think Secure Trust Bank will earn in the future (free profit forecasts). As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Secure Trust Bank the TSR over the last 5 years was 61%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence! We're pleased to report that Secure Trust Bank shareholders have received a total shareholder return of 19% over one year. And that does include the dividend. That's better than the annualised return of 10% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the 3 warning signs we've spotted with Secure Trust Bank . Secure Trust Bank is not the only stock that insiders are buying. For those who like to find lesser know companies this free list of growing companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges. — Investing narratives with Fair Values Suncorp's Next Chapter: Insurance-Only and Ready to Grow By Robbo – Community Contributor Fair Value Estimated: A$22.83 · 0.1% Overvalued Thyssenkrupp Nucera Will Achieve Double-Digit Profits by 2030 Boosted by Hydrogen Growth By Chris1 – Community Contributor Fair Value Estimated: €14.40 · 0.3% Overvalued Tesla's Nvidia Moment – The AI & Robotics Inflection Point By BlackGoat – Community Contributor Fair Value Estimated: $359.72 · 0.1% Overvalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-07-2025
- Automotive
- Yahoo
Secure Trust Bank exits new lending in vehicle finance
UK-based Secure Trust Bank is set to exit new lending in the vehicle finance market, impacting 284 roles by 2030. The move comes as the motor finance industry faces scrutiny over commission disclosure practices in the UK. Secure Trust Bank said its decision is expected to impact its financial results positively. The bank plans to place its existing vehicle finance book, valued at £558.3m ($761.6m) as of December 2024, into run-off. The vehicle finance segment generated a company loss before tax of £21.8m in FY24. On an unaudited pro forma basis, the group anticipates an increase in adjusted profit before tax to £56.6m from £39.1m. Additionally, the group expects an estimated 800 basis points increase in return on average equity (ROAE) before reinvesting the released capital from the motor finance business. Secure Trust Bank said it will continue to support its existing customers and loan portfolio in vehicle finance. As of 30 June 2025, the average consumer loan length outstanding was 37 months, with the longest contractual loan agreement being 60 months. The unit accounted for approximately 30% of the group's adjusted operating costs in FY24, and the bank plans to save more than £25m of operating costs by 2030. Secure Trust Bank stated it would consult with impacted colleagues, with 284 roles at risk by 2030, including 78 roles at risk in FY25. Restructuring costs of approximately £5m are anticipated. Vehicle finance will be reported as a non-core activity in the FY25 results and beyond. A further update will be provided in the group's interim results for the six months ended 30 June 2025, due to release on 14 August 2025. Secure Trust Bank CEO David McCreadie said: 'We have made the difficult decision to stop new lending in vehicle finance, our lowest-return business line, and to redeploy capital to our three higher-returning businesses of retail finance, real estate finance and commercial finance. "This pivot will allow the group to prioritise these established specialist businesses and achieve further simplification of the group, combined with the removal of a significant level of costs. These measures will have a material positive impact on ROAE for the group and will position the group to be capital accretive." According to the Finance and Leasing Association, the consumer new car finance market fell 7% in terms of new business value and 8% in volumes in April 2025 compared to April 2024. However, new business volumes in the new consumer car finance market were up by 11% in the first four months of 2025 compared to the same period in 2024. In contrast, the consumer used car finance market saw a 4% decrease in new business value in April 2025 while volumes grew by 2%. "Secure Trust Bank exits new lending in vehicle finance" was originally created and published by Motor Finance Online, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Reuters
02-07-2025
- Automotive
- Reuters
UK's Secure Trust Bank to stop new lending in vehicle finance
July 2 (Reuters) - Britain's Secure Trust Bank (STBS.L), opens new tab said on Wednesday it would stop new lending in vehicle finance, signalling a strategic shift as the bank withdraws from an underperforming segment amid industry-wide uncertainty after a court ruling on motor finance. London's Court of Appeal ruled in October that motor finance brokers must fully inform customers about commissions on new car loans, leading some lenders to temporarily pause writing and collecting such loans. Shares of key motor finance providers Close Brothers (CBRO.L), opens new tab, Lloyds (LLOY.L), opens new tab and others fell sharply after the ruling and Secure Trust Bank shares plunged to a record low of roughly 348 pence in November. The company warned about profit in November and said the pause in loan collections led to a higher volume of loans reaching default status and added that while it had restored collections to normal levels, it was taking longer than expected to recover funds. Since then, its shares have recovered. Early on Wednesday, the shares jumped nearly 5% to 836 pence. The lender's vehicle finance segment accounted for about 30% of its adjusted operating costs in 2024 and posted a loss before tax and pre-exceptional items of 21.8 million pounds ($29.9 million). On Wednesday, it said it will continue to support its existing customers and loan portfolio in vehicle finance, adding that it expects 284 roles to be at risk by 2030, including 78 roles in 2025. As at June 30, the average consumer loan length outstanding for vehicle finance was 37 months and the longest contractual loan agreement was 60 months, Secure Trust Bank said. The firm expects to incur restructuring costs of about 5 million pounds and said it will streamline its cost base as the loan book runs down, enabling more than 25 million pounds of operating costs to be removed by 2030. ($1 = 0.7286 pounds)
Daily Mail
02-07-2025
- Automotive
- Daily Mail
Car finance lender quits market after commissions scandal sparks industry upheaval
Secure Trust Bank plans to cease activity in the motor finance market to focus on more profitable business after the sector was rocked by a commissions scandal. A watershed Court of Appeal ruling last October declared that lenders could not hand car dealers commissions without a customer's informed consent. Until 2021, most vehicle purchases involved the use of discretionary commission arrangements, which enabled dealerships and brokers to set the interest rate on a buyer's finance agreement. This incentivised brokers to charge consumers higher rates, regardless of other factors, such as the loan's value, length of agreement, or a customer's credit score. The Court of Appeal's decision has left the vehicle finance industry worried it might be hit with a huge compensation bill. Ratings agency suggests the sector could end up paying £30billion, while one senior Financial Conduct Authority lawyer estimates it could surpass the £50billion banks paid to settle PPI claims. Following an appeal against the October court decision, the Supreme Court is set to bring a final judgement on the matter sometime this month. Secure Trust told investors on Wednesday its commercial banking firm is halting all lending within the motor finance segment and allowing the existing portfolio to run off. It claimed the move 'reflects the historical financial performance and medium-term outlook' of the vehicle finance division, which incurred a £21.8million loss before tax and exceptional items last year. STB believes the pivot would have increased its adjusted pre-tax profits in 2024 from £39.1million to £56.6million and its return on average equity by 800 basis points. The Solihull-based company hopes to eliminate over £25million of operating costs by 2030 from running down its motor finance loan book. Over the same timeframe, 284 positions will be at risk of redundancy, including 78 this year alone. The lender intends to redirect capital to more 'higher-returning' businesses, including retail finance, commercial finance, and real estate finance. David McCreadie, chief executive of STB, said the 'pivot will allow the group to prioritise these established specialist businesses and achieves further simplification of the group, combined with the removal of a significant level of costs. 'These measures will have a material positive impact on ROAE for the group and will position the group to being capital accretive.' 'We will be consulting with impacted colleagues to explain why this pivot in our strategy will drive the future sustainable success of the group.' Secure Trust Bank shares were 6.8 per cent up at 852p on Wednesday morning and have climbed by around 140 per cent since the year started.
FF News
16-06-2025
- Business
- FF News
How Can AI Help Prevent Fraud in Banking Without Opening New Risks?
Fraud continues to be a significant challenge in banking, with consumer markets often facing high volumes of low-value fraud, while corporate fraud, though less frequent, can be much more devastating. In this video, we explore the current landscape of fraud in both sectors and the evolving role of technology, particularly artificial intelligence, in detecting and preventing fraudulent activity. AI holds promise in transforming fraud prevention by analyzing vast amounts of data to spot anomalies and identify suspicious behavior before it causes harm. However, as the video highlights, AI also brings potential risks. The same technology used to protect against fraud could be exploited to create fake data, leading to significant financial losses if banks are not careful. This dual nature of AI presents both challenges and opportunities for financial institutions. The conversation then turns to the untapped potential of AI in the corporate banking space. While AI is already making strides in consumer fraud detection, there's still a gap in its application within corporate banking. This video discusses the future opportunities for AI to play a bigger role in safeguarding corporate transactions and ensuring greater security across the financial ecosystem. Companies In This Post Secure Trust Bank
