Secure Trust Bank (STB) investor relations material

Executive summary

• Achieved strong H1 2026 results with profit growth, improved returns, and execution on strategic priorities, including the completed exit from Vehicle Finance, which simplified operations and released capital for growth.

• Investments in product development and digital capabilities are generating tangible results, with new products, partnerships, and expanded distribution supporting scalable growth.

• Significant operating leverage and infrastructure in place to support future growth, with a medium-term cost to income ratio target of 35%-40%.

• Strong execution on cost reduction, with a substantial portion of targeted savings already delivered or contractually committed.

• On track to meet unchanged FY 2026 guidance and medium-term targets, including >16% ROAE and c.10% annual net lending growth.

Financial highlights

• Adjusted profit before tax rose 9.4% to £31.3m year-over-year; total profit before tax up 40.8% to £31.4m.

• Net lending increased 4.9% to £3.5bn, driven by growth in Retail and Business Finance.

• CET1 ratio improved to 14.3%, above the 13% ambition and regulatory requirements.

• Net interest margin stable at 4.7%; risk-adjusted margin at 4.2%; cost of risk improved to 0.9%.

• Adjusted cost income ratio at 46.5%; interim dividend per share increased 5.1% to 12.4p.

Outlook and guidance

• FY 2026 guidance unchanged: 8-10% net lending growth, c.10bps risk adjusted margin improvement, cost income ratio c.47%, CET1 ratio c.13.5%.

• Medium-term targets: c.10% annual net lending growth, ROAE >16%.

• Priorities for H2 2026: deliver growth through new and existing products, advance cost and technology programs, and complete the remaining £5m buyback tranche.

• Confident in navigating macroeconomic and regulatory uncertainty, with resilient credit quality and strong capitalisation.