Yahoo Finance

• Net Lending: GBP3.4 billion, an increase of 3.2% since the end of 2023.

• Customer Deposits: GBP3 billion, an increase of 6% since the end of 2023.

• Profit Before Tax Pre-Impairments: GBP45.2 million, up 12.4% from the first half of 2023.

• Net Interest Margin (NIM): Reduced to 5.3% from 5.4% last year; exited the half-year at 5.4%.

• Operating Costs: Increased by GBP1.8 million or 3.8%.

• Cost Income Ratio: Improved by 220 basis points to 53.7%.

• Risk-Adjusted Margin: 4.1%, down from 4.5% in the first half of last year.

• Return on Average Equity: Reduced to 7.3%.

• Interim Dividend: 11.3p per share.

• Operating Income: Increased by 7.9% compared to the first half of 2023.

• Impairments: Increased by 23.2% due to vehicle finance collections pause.

• Net Interest Income: GBP88.2 million, an 8.9% increase from the same period last year.

• Retail Finance Net Lending: GBP1.3 billion, growth of 7.5% compared to the end of last year.

• Vehicle Finance Net Lending: GBP498 million, growth of 6.6% compared to the end of 2023.

• Real Estate Finance Net Lending: Grew by 2.2% since the end of 2023.

• Commercial Finance Net Lending: GBP337 million, 11.6% lower than the end of 2023.

• Loan-to-Deposit Ratio: Increased by 2.9%.

• Tangible Book Value Per Share: Increased by 3.1% to GBP18.36.

• CET1 Ratio: 12.7%, above the regulatory minimum of 9.6%.

• Warning! GuruFocus has detected 5 Warning Signs with LSE:STB.

Release Date: August 14, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Secure Trust Bank PLC (LSE:STB) reported a 7.9% increase in operating income compared to the first half of 2023, demonstrating effective execution of their growth plan.

• The company achieved a 12.4% increase in profit before tax pre-impairments over the first half of 2023, driven by lending growth and disciplined cost management.

• Net lending grew by 3.2% to GBP3.4 billion, and customer deposits increased by 6% to GBP3 billion since the end of 2023.

• Secure Trust Bank PLC (LSE:STB) is on track to deliver GBP5 million of cost savings from Project Fusion by the end of the year, with an upgraded target of GBP8 million by the end of 2025.

• The company maintained a strong CET1 ratio of 12.7%, comfortably above the regulatory minimum, supporting their growth plans.

Negative Points

• The net interest margin (NIM) decreased slightly to 5.3% from 5.4% due to higher retail funding costs.

• The cost of risk increased by 20 basis points to 1.7%, primarily driven by a pause in collections activity in the vehicle finance business.

• Return on average equity reduced to 7.3% due to increased payment charges during the period.

• Impairments in the vehicle finance business rose by 23.2% due to the FCA's borrowers in financial difficulty review.

• Profit before tax decreased by 1.7% compared to the same period last year, reflecting challenges in certain business segments.