Secure Trust Bank (STB) has published a reassuring FY25 trading update showing clear evidence of a pivot towards higher-growth, higher-profitability businesses. In our view, STB’s current valuation still does not reflect the profitability potential of the core businesses, which generated an annualised 13.7% ROAE at H1 2025. Strong loan growth in the continuing businesses was matched by equally strong deposits growth. Reduction in the discontinued loan book continues at pace and the sale of the Consumer Vehicle Finance book is progressing well.