Secure Trust Bank is an established ‘challenger’ with a record of organic profitable growth. The Everyday Loans Group sale provides substantial regulatory capital for organic and potentially inorganic growth. The move into mortgages will further diversify lending. Despite a record of rapid loan book expansion, an ROE/COE valuation model suggests the market is reluctant to make full allowance for profitable employment of the surplus.

26 Apr 2016
Growing into its capital

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Growing into its capital
Secure Trust Bank Plc (STB:LON) | 661 -52.9 (-1.2%) | Mkt Cap: 125.5m
- Published:
26 Apr 2016 -
Author:
Andrew Mitchell -
Pages:
12 -
Secure Trust Bank is an established ‘challenger’ with a record of organic profitable growth. The Everyday Loans Group sale provides substantial regulatory capital for organic and potentially inorganic growth. The move into mortgages will further diversify lending. Despite a record of rapid loan book expansion, an ROE/COE valuation model suggests the market is reluctant to make full allowance for profitable employment of the surplus.