LONDON: Secure Trust Bank PLC (STB.L), a UK-based specialist lender, reported a 36.3% rise in adjusted pre-tax profit to £23.3 million for the six months ended June 30, 2025, driven by strong income growth and tighter cost controls.
The Group’s statutory profit before tax rose 30.4% to £22.3 million, while net lending increased 6.1% to £3.8 billion, supported by expansion in Retail and Business Finance portfolios. Net Interest Margin improved to 5.4% from 5.3% a year earlier.
CEO David McCreadie, who is set to retire in August pending regulatory approval, said the bank is on track to deliver £8 million in annualised cost savings by year-end. “We’ve made continued progress towards delivering sustainable higher returns,” McCreadie said.
The Group’s adjusted cost-income ratio improved by 460 basis points to 49.1%, and adjusted return on average equity rose to 9.6% from 7.3%. Tangible book value per share increased 3.9% to £19.37.
In July, STB announced a strategic pivot away from Vehicle Finance, halting new lending in Consumer Vehicle Finance and Stock Funding. The move is aimed at reallocating capital to higher-performing segments and improving long-term ROAE.
Customer deposits reached a record £3.5 billion, enabling early repayment of TFSME balances. The Group will unveil refreshed strategic plans and medium-term targets at a capital markets event in Q4 2025.
McCreadie will remain on the board until regulatory approvals for incoming CEO Ian Corfield are finalised. The Group expects to maintain its ROAE trajectory despite macroeconomic uncertainty and looks to further enhance returns in 2026.