Secure Trust Bank (STB) investor relations material

Trading performance and outlook

• On track to deliver consensus FY 2026 profit before tax expectations of £63.7m; figure is the simple average of analysts’ forecasts for adjusted profit before tax.

• Continuing loan book £3.5bn, up 1.4% at Q3; growth was 6.4% YTD and 9.5% YoY, driven by Business Finance despite softer asset-based lending conditions.

• Softer asset-based lending markets affected Business Finance fee income; growth across the broader business supports the FY 2026 outlook.

• All 2026 product initiatives across both lending divisions are generating new business, with growing pipelines supporting momentum into 2027.

Capital, costs and operations

• Completed the second £5m tranche of the £10m share buyback, returning excess capital from the sale of the Consumer Vehicle Finance business to shareholders.

• Cost management programme progressing; management remains confident of delivering £25m of total cost savings in FY 2028.

• Customer deposits remained broadly stable; funding requirements were actively managed and credit performance remained robust.

• Retail Finance V12 app relaunched in September and has over 780,000 registered users; record customer interaction, self-service and digital payments are improving outcomes and reducing operational demand.

Guidance and medium-term targets

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

• Distributions guidance: progressive dividend policy maintained and £10m buyback programme launched; discontinued activities target break-even profit before tax before adjusting items.

• FY 2028 medium-term targets unchanged: annual net lending growth c.10% and return on average equity above 16%.