Secure Trust Bank interim profits jump as customer deposits hit record

(Sharecast News) - Secure Trust Bank posted a jump in interim profit on Thursday as customer deposits hit a record high. In the six months to 30 June, adjusted pre-tax profit rose 36.3% to £23.3m, while statutory pre-tax profit increased 30.4% to £22.3m.

Customer deposits pushed up 8.2% to a record £3.5bn and net lending balances rose 6.1% to £3.8bn.

The net interest margin improved to 5.4% from 5.3% thanks to lower cost of funds in the first half of the year and improved margins in Retail Finance.

Adjusted return on average equity ticked up to 9.6% from 7.3% at the end of June 2024.

Chief executive David McCreadie said: "We are on track to deliver £8 million of annualised cost savings by the end of 2025. We recently announced a strategic pivot away from Vehicle Finance which will enable further allocation of capital to our higher-performing specialist lending businesses. This decision, alongside a strategic refresh which will be detailed at a capital markets event in Q4 2025, will position the group to deliver sustainable attractive returns.

"As previously announced, I will be retiring as the group's CEO. During my tenure, we have delivered a radical transformation of the group to position it for future growth. I wish my successor, Ian Corfield, every success in the role."

At 0920 BST, the shares were up 6.2% at 1,167.99p.