Pre-Close Statement

RNS Number : 2556V

Secure Trust Bank PLC

10 January 2012

 



                                                                                                                  For Immediate Release

PRESS RELEASE                                                                                                   10 January 2012

 SECURE TRUST BANK PLC

PRE-CLOSE STATEMENT

Overall Secure Trust Bank PLC ("STB" or the "Company") has had a good year. The lending and deposit gathering businesses have shown strong growth. New lending volumes increased by 33% on 2010. The fee based current account business has continued to develop with customer numbers more than doubling in 2011.

In respect of the consumer finance joint venture referred to previously by Arbuthnot Banking Group PLC and STB, despite exhaustive efforts we have been unable to agree a structure which meets regulatory requirements and falls within our risk appetite; consequently the joint venture will not be proceeding as expected. As a result anticipated income associated with the joint venture has not been received and some extra costs associated with carrying excess deposits have been incurred, the overall cost of which was in excess of £1 million. Accordingly, STB expects to report a profit before tax at the lower end of the range of market expectations prior to IPO costs. It is expected that approximately £0.5 million of the IPO costs will be expensed in the profit and loss account for 2011. 

The underlying growth potential of the business has been enhanced by the successful IPO of the Company in November through which STB raised new capital to support significant growth in our lending businesses. STB enters 2012 in a strong and confident position, albeit with a cautious attitude given the ongoing deterioration in the economic outlook. The Company is continuing to work on significant organic and external business opportunities and it is expected that in the near future the Company will be in a position to report on the progress of these.

Enquiries:

Secure Trust Bank PLC
Henry Angest, Non Executive Chairman Andrew Salmon, Non Executive Director	Tel:      [phone]
Paul Lynam, Chief Executive Neeraj Kapur, Finance Director	Tel:      [phone]
David Marshall, Director of Communications	Tel:      [phone]
Hawkpoint Partners Limited (Nominated Adviser)                   Lawrence Guthrie Sunil Duggal	Tel:      [phone]
Collins Stewart Europe Limited (Broker)	Tel:      [phone]
Roger Lambert Lucy Tilley
Pelham Bell Pottinger	Tel:      [phone]
Ben Woodford Dan de Belder

 

END

 

 

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