Secure Trust Bank : Analyst Presentation

Section

1

Secure Trust Bank PLC 2021 Year End Results

Focus is on our key specialist markets

• Statutory Profit before Tax of £56.0m, an increase of 193% on 2020
• Results predominately driven by a reduction in impairment charges
• • Macroeconomic outlook and quality of lending both improved
• Strong lending growth
• • Core lending balances +11.6%
  • New business lending +42.1%
• Focus on core specialist lending businesses
• • Disposal of Asset Finance and Consumer Mortgage portfolios
• Announced the sale of the full portfolio of loans held by Debt Managers (Services) Limited to complete the Group's simplification
• Proposed final dividend of 41.1p totalling 61.1p for 2021
  (2020: 44.0p) based on 25% of EPS to be returned to shareholders
• With more focus on our diversified, specialised lending businesses we are confident of delivering strong lending growth and attractive returns

CET 1 Ratio

14.5%

2020: 14.0%1

Net Interest Margin

6.4%

2020: 6.3%

Cost Income Ratio

63.2%

2020: 55.7%1

Return on Average Equity

15.9%

2020: 5.9%1

Lending Book AGR

11.6%

2020: (1.8%)

Overview

Secure Trust Bank PLC 2021 Year End Results

Compelling business case

• Established position in our specialist lending markets
• Proven flexibility in adapting to market conditions
• Excellent growth potential in large markets
• Proven capability to generate deposits
• Attractive risk adjusted margin:
• • Low risk
  • Good returns
• Good stable capital base with capacity for growth
• Attractive return on capital

Overview

Vision

To be the most trusted specialist lender in the UK

Purpose

To help more consumers and businesses fulfil their ambitions

Secure Trust Bank PLC 2021 Year End Results

New Business

Strong 2021 new business growth of 42.1%

New business trends

• New business increased in the year by 42.1% to £1,464.4m (2020 £1,030.2m) almost back to pre-pandemic levels (2019 £1,480.2m)
• Record H2 2021 levels up 54.8% (£297.2m) on H2 2020 and up 11.0% (£83.3m) on H2 2019
• New business in H1 2021 was 28.1% higher than in H1 2020
• Business Finance and Consumer Finance businesses delivered annual growth in new lending of 48.9% and 39.4% respectively

Overview