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Secure Trust Bank ( (GB:STB) ) has shared an announcement.
Secure Trust Bank PLC has announced a trading update for the financial year ending December 2025, highlighting a strategic shift away from its Vehicle Finance business, which has been put into run-off. This decision is expected to enhance the bank’s Return on Average Equity over time. Despite a decline in the net lending book by 4.1% in the third quarter, the Core business saw a year-on-year growth of 10.3%, driven by strong performances in Retail Finance and Real Estate Finance. However, the exit from Vehicle Finance has led to higher than expected impairment charges and may necessitate additional provisions for onerous supplier contracts. The bank anticipates that its underlying profit before tax for FY25 will fall short of market expectations by up to £9 million, although it still expects a 30% year-on-year growth in underlying profit before tax.
The most recent analyst rating on (GB:STB) stock is a Buy with a £1199.00 price target. To see the full list of analyst forecasts on Secure Trust Bank stock, see the GB:STB Stock Forecast page.
Spark’s Take on GB:STB Stock
According to Spark, TipRanks’ AI Analyst, GB:STB is a Outperform.
The overall stock score reflects a strong valuation with an attractive P/E ratio and dividend yield, which are significant positives. Technical analysis indicates a positive trend, although short-term momentum is mixed. Financial performance shows stability but highlights concerns over profitability and cash flow, which need addressing to enhance financial health.
To see Spark’s full report on GB:STB stock, click here.
More about Secure Trust Bank
Secure Trust Bank PLC is a well-established UK retail bank with a 72-year history, headquartered in Solihull, West Midlands. It operates primarily in Business Finance through its Real Estate Finance and Commercial Finance divisions, and Consumer Finance through its Retail Finance division. The bank is authorized by the Prudential Regulation Authority and regulated by both the Financial Conduct Authority and the Prudential Regulation Authority.
Average Trading Volume: 110,652
Technical Sentiment Signal: Buy
Current Market Cap: £220.9M
For detailed information about STB stock, go to TipRanks’ Stock Analysis page.