Final Results

Secure Trust Banking Group PLC
19 March 2002

                         SECURE TRUST BANKING GROUP PLC

              Preliminary results for the year to 31 December 2001

                                   Key Points


  • Dividends per share up 4% to 29p

  • Operating income increased to £35 million

  • Total assets increased by 11% to £199 million

  • Customer deposits increased by 17% to £138 million

  • Profit before tax of £8.15 million (2000: £9.5 million)

  • Earnings per share 41.6 p (2000: 48.2p)

Chairman, Henry Angest, commented,

'The difficult conditions which prevailed in the financial markets throughout
2001 have not been helpful for the Group's business and a low interest
environment has never benefited us. Nonetheless, I am pleased to say that
despite this background, we succeeded in increasing operating income, total
assets and customer deposits. Reflecting the strong cash-flow, our confidence in
the business is demonstrated by the increase in the dividend and I remain
positive about the Group's prospects.'



Press enquiries for Secure Trust Banking Group PLC:

Secure Trust Banking Group PLC

Henry Angest, Chairman                              Tel: [phone]

Stephen Lockley, Finance Director                   Tel: [phone]

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Zoe Biddick/Katie Tzouliadis                        Tel: [phone]



CHAIRMAN'S STATEMENT

Shareholders will be aware of the difficult conditions which prevailed in
financial markets throughout 2001, stemming from the slowdown in most of the
major global economies. This followed on from the depressed state of the stock
market during much of 2000. The FTSE 100 share index ended last year at 5,217,
representing falls respectively of 16% during the year and 25% from the high of
6,930 in December 1999. The policy response to these difficulties was a global
reduction in interest rates and the average UK base rate during 2001 was 5.1%,
compared with an average for the previous year of 6.0%.

These external factors have not been helpful for the Group's business and, in
particular, a low interest rate environment has never benefited the Group.
Nonetheless, I am pleased to say that, despite this background, we succeeded in
increasing operating income by 2% to £34.9 million, total assets by 11% to
£198.7 million, customer deposits by 17% to £138.4 million and liquid resources
by 23% to £81.7 million.

After allowing for higher operating costs, partly reflecting the impact of
significant regulatory changes during the year, and continued cautious
provisioning, profits before tax were £8.15 million (2000: £9.5 million).
Earnings per share were 41.6 pence (2000: 48.2 pence).

The directors continue to pursue a progressive dividend policy, underpinned by
the Group's strong cash-flow, and are recommending a final dividend of 19.5
pence per share which, together with the interim dividend of 9.5 pence, makes a
total for the year of 29 pence, an increase of 4% over 2000. The final dividend
will be paid on 20 May 2002 to all shareholders on the register at 19 April
2002.

Secure Trust Bank

This year marks the 50th Anniversary of the founding of Secure Trust Bank. Much
of its considerable success has been due to the leadership of Ron Paston
throughout his time as Managing Director from 1973 to 2000.

Following Ron's retirement from executive duties at the beginning of 2001, the
new Joint Managing Directors, Keith Deakin and Derek Pearson, have continued to
pursue the strategy of focussing on those aspects of the business which offer
the best growth prospects. These include personal lending, where the level of
advances rose by 8% over the previous year, and the introduction of a new
product, DebtWise, which offers specialist, cost-effective assistance to people
who have become over-indebted. At the same time, our intensive marketing
campaign in the North-West produced encouraging results and is being repeated in
the current year. Whilst these initiatives inevitably have incurred additional
development and promotional costs, I am pleased to report that the bad debt
charge in the division was 13% lower than last year, despite the higher level of
lending. The operating profit of the division was £7.2 million (2000: £8.2
million).

Arbuthnot Latham

Arbuthnot Latham has continued to win new business and succeeded in increasing
operating income by 12% despite being adversely affected by the falls in both
stock markets and interest rates to which I have referred. Fee and commission
income rose by an encouraging 19%. As a result of lower base rates, net interest
was 3% lower than last year. Operating costs rose by 16% to support the growth
in business volumes as we have continued to invest in people, premises and
systems. The combined effects reduced profits before provisions and goodwill by
8% to £1.7 million. Reflecting our concern about the economic outlook, we
increased the bad debt provisions for the division to £0.4 million. Overall
operating profits for the division were £1.3 million (2000: £1.7 million).

Outlook

Looking at the UK economy, the signals are mixed and financial markets continue
to be depressed. Whilst this will make progress in the current year difficult,
the Board remains convinced of the fundamental strengths of the Group, as
evidenced by the strong cash-flow and high return on equity. I reiterate our
belief in the strategy of providing a diverse portfolio of financial services
which will enable us to continue to develop successfully over the longer term.
Our confidence in this business model is demonstrated by the increase in the
dividend recommended by the Board and I remain positive about the Group's
prospects.

Henry Angest

Chairman



CONSOLIDATED PROFIT AND LOSS ACCOUNT

For the year ended 31 December 2001
                                                                                    2001                        2000
                                                                             (unaudited)                   (audited)
                                                                                   £'000                       £'000

Interest receivable from loans, advances and investments                          12,771                      12,902
Less: interest payable                                                           (4,307)                     (4,334)

Net interest income                                                                8,464                       8,568

Fees and commissions receivable                                                   27,194                      26,294
Less: fees and commissions payable                                                 (801)                       (758)

Operating income                                                                  34,857                      34,104

Administrative expenses                                                           24,328                      22,533
Depreciation                                                                       1,239                       1,135
Amortisation of goodwill                                                             166                         150
Provisions for bad and doubtful debts                                                974                         784

Operating expenses                                                                26,707                      24,602

Profit on ordinary activities before tax (note 1)                                  8,150                       9,502
Tax on profit on ordinary activities                                             (2,341)                     (2,645)

Profit on ordinary activities after tax                                            5,809                       6,857
Minority interests                                                                  (17)                        (16)

Profit attributable to shareholders of Secure Trust Banking Group PLC              5,792                       6,841
Dividends                                                                        (4,006)                     (3,922)
Retained profit for the year                                                       1,786                       2,919

Earnings per ordinary share (note 2)
Basic and fully diluted                                                            41.6p                       48.2p

STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

Retained profit for the financial year                                              1,786                       2,919
Surplus on revaluation of freehold properties                                         511                           -
Total recognised gains and losses for the financial year                            2,297                       2,919



CONSOLIDATED BALANCE SHEET

At 31 December 2001
                                                                                     2001                       2000
                                                                              (unaudited)                  (audited)
                                                                                    £'000                      £'000
Assets
Cash                                                                                  155                        224
Loans and advances to banks and building societies                                 66,053                     52,468
Loans and advances to customers                                                    96,286                     93,737
Debt securities                                                                    15,500                     13,500
Intangible assets                                                                   2,915                      3,081
Tangible fixed assets                                                               8,810                      7,314
Other assets                                                                        5,849                      5,693
Prepayments and accrued income                                                      3,130                      2,752

Total assets                                                                      198,698                    178,769

Liabilities
Deposits by banks                                                                  12,860                     16,227
Customer accounts                                                                 138,374                    118,153
Insurance reserves                                                                  2,477                      2,179
Other liabilities                                                                  17,107                     16,719
Accruals and deferred income                                                        2,674                      2,373
Equity minority interests                                                              84                         72
                                                                                  173,576                    155,723

Called up share capital                                                               139                        139
Share premium account                                                              13,370                     13,370
Capital redemption reserve                                                             11                         11
Revaluation reserve                                                                   511                          -
Profit and loss account (note 3)                                                   11,091                      9,526

Equity shareholders' funds                                                         25,122                     23,046

Total liabilities                                                                 198,698                    178,769



NOTES


 1. Segmental Analysis of Profits

                                                             2001                           2000
                                                      (unaudited)                      (audited)
                                                            £'000                          £'000

Personal Financial Services                                 7,230                          8,170
Private & Merchant Banking                                  1,293                          1,712
                                                            8,523                          9,882

Interest on Share Buy-Backs                                 (207)                          (230)
Amortisation of Goodwill                                    (166)                          (150)
Profit before Taxation                                      8,150                          9,502


 2. Earnings per Ordinary Share

    Earnings per ordinary share are calculated on the net basis by dividing the
    profit attributable to shareholders of £5,792,000 (31.12.2000 £6,841,000) by
    the weighted average number of ordinary shares 13,916,207 (31.12.2000:
    14,193,974) in issue during the year. There is no difference between basic
    and fully diluted earnings per ordinary share.

 3. Profit and Loss Account

                                                                     2001                   2000
                                                              (unaudited)              (audited)
                                                                    £'000                  £'000

    Retained profit                                                33,021                 31,456
    Premiums on acquisitions written off                         (21,930)               (21,930)
                                                                   11,091                  9,526

    Retained profit for 31 December 2001 is stated after deducting £0.22 million
    (2000: £1.64 million) in respect of the cost of shares repurchased during
    the year.

 4. Basis of reporting

    The figures for the year ended 31 December 2001 have been prepared in all
    material respects on the basis of the accounting policies set out in the
    Group's 2000 statutory accounts. The preliminary results were approved by
    the Board of Directors on 18 March 2002 and are unaudited.

 5. Results for the year ended 31 December 2000


        The figures for the year ended 31 December 2000 are extracted from the
        full Group Accounts for the year which have been delivered to the
        Registrar of Companies and on which the Auditors gave an unqualified
        report.




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