Interim Results

Secure Trust Banking Group PLC
25 September 2001

                        SECURE TRUST BANKING GROUP PLC

              Interim results for the six months to 30 June 2001

                                  Key Points


  * Interim dividend increased to 9.5p (2000: 9p)

  * Operating income increased 5% to £17.4m (2000: £16.6m)

  * Profit before taxation of £4.3m (2000: £4.6m)

  * Earnings per share of 22.5p (2000: 23.3p)

Chairman, Henry Angest, commented:

'I am pleased that the Group has increased operating income despite the
deteriorating economy and unsettled financial markets. Secure Trust Bank has
been particularly successful in increasing the level of personal loan
advances, whilst Arbuthnot Latham has recorded a 25% rise in fees and
commissions.

We feel that our business model of a diversified financial services group
protects profitability better than a more 'focused' model. We are therefore
continuing to grow our customer base, broaden our product range and improve
the delivery of our services to customers.

Given the increasing economic and market uncertainty, we are cautious on the
outlook for the remainder of this year. Nevertheless, I remain positive about
the overall prospects of the Group and it is for this reason that we have
again increased the dividend.'

 Press enquiries for Secure Trust Banking Group PLC:
Henry Angest, Chairman                               Tel: [phone]
Stephen Lockley, Finance Director                    Tel: [phone]
Zoe Biddick / Kathryn Burn, Biddicks                 Tel: [phone]

CHAIRMAN'S STATEMENT

Against a background of deteriorating conditions in both the financial markets
and the wider international economy, the Group achieved an increase in
operating income in the first half of 2001 of 5% compared with the same period
last year. This has been achieved despite the negative impact on our earnings
of falling interest rates, without which operating income would have risen by
6%. This growth, coupled with the ever increasing burden of regulation, has
necessitated an increase in personnel and premises, leading to a rise in
operating costs of 9%. Pre-tax profit is therefore slightly below last year at
£4.3 million (2000: £4.6 million) and earnings per share are 22.5p (2000:
23.3p). The interim dividend, which will be paid on 2 November 2001 to
shareholders on the register at 5 October 2001, is increased from 9p to 9.5p.

Secure Trust Bank

Net interest income in Secure Trust Bank increased by 3% compared with the
first half of 2000. This was achieved despite the reduction in interest rates
and reflects a 9% increase in the level of new personal loan advances,
resulting from our strategy of controlled expansion in the personal lending
activity. The rationalisation of our motor insurance consultancy branches held
back fee and commission income, which accordingly showed a small decline on
last year. Costs were contained at a similar level to the prior year, despite
a planned increase in expenditure on advertising for new customers in the
North West. This advertising campaign has produced an encouraging level of new
customer signings, albeit that the net benefits will accrue largely in future
periods. As a result of the above factors, profits of Secure Trust Bank were £
3.5 million (2000: £3.7 million).

Arbuthnot Latham

Arbuthnot Latham has continued to expand significantly during the period and
operating income rose by 19%. Within this figure, net interest income has been
held back by falling interest rates, which depressed deposit margins as well
as reducing earnings on free cash balances. However, underlying business
volumes were higher than the corresponding period last year, with the loan
book 11% higher at £64 million and deposits 9% higher at £95 million. As a
result, net interest income rose by 6%. More pleasingly, fees and commissions
rose by 25%, reflecting the growth in the client base. Operating costs rose by
23%, mirroring the growth in the business, as a result of which profits
reduced slightly to £0.8 million.

Outlook

The economic events of the last few months have underlined the merits of our
policy in being a diversified financial services group. Even if, at times,
some businesses perform less well than others, the broadly spread product
portfolio achieves diversification of risk and thereby protects overall
profitability compared with the more 'focused' business model which, until
recently, was so popular. It is my belief that we should continue to do what
is right for the Group over the long term, not just follow the latest fashion.
Much work therefore continues to be undertaken across the Group to grow the
customer base, broaden the product range and improve the delivery of our
services to customers.

Looking to the immediate future, I anticipate that the increasing economic and
market uncertainty which has affected these figures might impact the results
for the second half of the year to a greater extent. In the light of this, we
must remain cautious on the outlook for the current year. However, I remain
positive about the overall prospects for the Group and it is for this reason
that we have again increased the dividend.

 Henry Angest

CONSOLIDATED PROFIT AND LOSS ACCOUNT
                                      6 months to     6 months to       Year to
                                          30.6.01         30.6.00      31.12.00
                                      (unaudited)     (unaudited)     (audited)
                                             £000            £000          £000

Interest receivable from loans,             6,573           5,925        12,902
advances and investments
Less: interest payable                    (2,375)         (1,884)       (4,334)

Net interest income                         4,198           4,041         8,568
Fees and commissions receivable            13,501          12,918        26,294
Less: fees and commissions                  (268)           (345)         (758)
payable

Operating income                           17,431          16,614        34,104

Administrative expenses                    12,137          11,146        22,533
Depreciation                                  581             534         1,135
Amortisation of goodwill                       85              75           150
Provisions for bad and doubtful               361             272           784
debts

Operating expenses                         13,164          12,027        24,602

Profit on ordinary activities               4,267           4,587         9,502
before tax

Tax on profit on ordinary                 (1,126)         (1,255)       (2,645)
activities

Profit on ordinary activities               3,141           3,332         6,857
after tax
Minority interests                            (7)             (7)          (16)

Profit attributable to                      3,134           3,325         6,841
shareholders of Secure Trust
Banking Group PLC
Dividends                                 (1,322)         (1,278)       (3,922)

Retained profit                             1,812           2,047         2,919

Earnings per ordinary share (note
2)
Basic and fully diluted                     22.5p           23.3p         48.2p

The profit on ordinary activities before tax and retained profit on a
historical cost basis are not different from the profit on ordinary activities
before tax and retained profit for the periods above.

The Group has no recognised gains and losses other than the profits and above
and, therefore, no separate statement of total recognised gains and losses has
been presented.



CONSOLIDATED BALANCE SHEET
                                           30.6.01       30.6.00      31.12.00
                                       (unaudited)   (unaudited)     (audited)
                                              £000          £000          £000

Assets
Cash and balances at central banks             200           223           224
Loans and advances to banks and             39,686        39,703        52,468
building societies
Loans and advances to customers             97,453        86,850        93,737
Debt securities                             13,500        13,500        13,500
Intangible fixed assets                      2,996         3,040         3,081
Tangible fixed assets                        7,734         7,232         7,314
Other assets                                 5,517         6,040         5,693
Prepayments and accrued income               3,401         2,716         2,752

Total assets                               170,487       159,304       178,769

Liabilities
Deposits by banks                            8,822         2,231        16,227
Customer accounts                          115,568       109,537       118,153
Insurance reserves                           2,016         4,095         2,179
Other liabilities                           16,731        17,912        16,719
Accruals and deferred income                 2,418         2,331         2,373
Equity minority interests                       74            18            72

                                           145,629       136,124       155,723

Called up share capital                        139           142           139
Share premium account                       13,370        13,370        13,370
Capital redemption reserve                      11             9            11
Profit and loss account (note 3)            11,338         9,659         9,526

Equity shareholders' funds                  24,858        23,180        23,046

Total liabilities                          170,487       159,304       178,769



CONSOLIDATED CASH FLOW STATEMENT
                                      6 months to     6 months to       Year to
                                          30.6.01         30.6.00      31.12.00
                                      (unaudited)     (unaudited)     (audited)
                                             £000            £000          £000

Net cash outflow from operating             (944)           2,772        10,120
activities
Dividends paid to minority                    (5)            (23)          (23)
shareholders of subsidiary
undertaking
Taxation                                    (870)           (611)       (2,889)
Capital expenditure and                   (1,001)         (1,519)       (2,123)
financial investment
Acquisitions                                (132)           (919)       (1,083)
Equity dividends paid                     (2,644)         (2,664)       (3,942)
Financing                                       -           (635)       (1,640)

Decrease in cash                          (5,596)         (3,599)       (1,580)



RECONCILIATION OF OPERATING PROFIT TO NET CASH INFLOW FROM OPERATIONS
                                     6 months to      6 months to       Year to
                                         30.6.01          30.6.00      31.12.00
                                     (unaudited)      (unaudited)     (audited)
                                            £000             £000          £000

Operating profit                           4,267            4,587         9,502
Profit on sale of tangible                     -                -          (76)
fixed assets
Increase in accrued income and             (649)            (178)         (214)
prepayments
Increase in accruals and                      45            (254)         (212)
deferred income
Provisions for bad and                       361              272           784
doubtful debts
Depreciation and amortisation                666              609         1,285
Decrease in insurance reserves             (163)            (488)       (2,404)

Net cash flow from trading                 4,527            4,548         8,665
activities

Net decrease in loans and                  3,133              897      (16,903)
advances to banks and
customers
Net decrease in deposits by              (9,990)          (4,557)        16,955
banks and customer accounts
Net decrease in other assets                 176             (41)           306
Net increase in other                      1,210            1,925         1,097
liabilities

Net cash outflow from                      (944)            2,772        10,120
operating activities



NOTES TO THE FINANCIAL STATEMENTS


 1. Segmental analysis of profits

                                  6 months to      6 months to       Year to 
                                    30.6.01           30.6.00        31.12.00
                                  (unaudited)       (unaudited)      (audited)
                                        £000              £000           £000
                                                 
       Personal Financial Services     3,483             3,739          7,940

       Private and Merchant Banking      784               848          1,562

                                       4,267             4,587          9,502

 2. Earnings per ordinary share

    Basic and fully diluted

    Earnings per ordinary share are calculated on the net basis by dividing
    the profit attributable to shareholders of £3,134,000 (30.6.00: £
    3,325,000, 31.12.00: £6,841,000) by the weighted average number of
    ordinary shares 13,917,974 (30.6.00: 14,302,672, 31.12.00: 14,193,974) in
    issue during the period.

 3. Profit and loss account

                                  6 months to      6 months to       Year to 
                                    30.6.01           30.6.00        31.12.00
                                  (unaudited)       (unaudited)      (audited)
                                        £000              £000           £000

       Retained profit
                                                  
       Opening balance                31,456            30,177         30,177
                                                       
       Cost of shares repurchased          -              (635)        (1,640)

       Profit for the period           1,812             2,047          2,919

       Closing balance                33,268            31,589         31,456

       Premiums on acquisitions      (21,930)          (21,930)       (21,930)
       written off

                                      11,338             9,659         9,526

 4. Basis of reporting

    The interim financial statements have been prepared on the basis of the
    accounting policies set out in the Group's 2000 statutory accounts. The
    statements were approved by the Board of Directors on 24 September 2001
    and are unaudited. The auditors have not carried out a review of the
    interim financial statements.

 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.

 6. Copies of this interim report will be posted to all shareholders and
    further copies are available from the Company's registered office: Secure
    Trust Banking Group PLC, Paston House, Arleston Way, Solihull B90 4LH.