Financial Services

Secure Trust Bank PLC

Analysts

Company Description

Founded over 70 years ago, Secure Trust Bank is a leading retail deposit-funded specialist bank operating in four core markets: retail finance, vehicle finance, real estate finance and commercial finance. Secure Trust Bank's management has simplified and restructured the business through the sale/exit of non-core businesses, repositioning the loan portfolio towards lower risk/lower yielding loans and a focus on operating costs and efficiency (Project Fusion).

Investment Summary

Secure Trust Bank's ambitious and achievable medium-term targets aim to deliver significantly higher profitability combined with a lower-risk earnings stream. Progress to date in repositioning the business gives us confidence in management's ability to deliver on its medium-term targets. Secure Trust Bank targets a 14%-16% ROE, driven by a substantial reduction in the cost income ratio and strong loan growth, particularly in the consumer loan books (retail finance and vehicle finance). The key to much of this is Secure Trust Bank's grip on technology and the extent to which it has been embedded across all businesses and integrated with its business partners.

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Company Management Team

  • David McCreadie

    Chief Executive Officer

    Appointed to the Board on 17 December 2019 and appointed as Chief Executive Officer on 5 January 2021. Skills and experience: David McCreadie has many years of banking experience and is a Fellow of the Chartered Banking Institute. He spent more than 20 years at The Royal Bank of Scotland (RBS) (now Natwest Group plc) holding roles in Branch Banking, Consumer Finance and several Group central functions. From 2004 to 2008 David was appointed the CEO of Kroger Personal Finance, a joint venture between RBS and Kroger Co, based in Cincinnati, USA. David joined Tesco Personal Finance in 2008 and was a member of the executive team that built Tesco Bank. David was an Executive Director and Managing Director of Tesco Bank, with responsibility for the banking and insurance businesses, from 2015 to 2019. His executive career and wealth of experience in banking, risk management, governance, consumer facing businesses and retailing provide David with the skills needed to manage the day-to-day activities of STB. His strong leadership and strategic expertise enable him to lead the Group in a sustainable way and create shareholder value.

  • Rachel Lawrence

    Chief Financial Officer

    Appointed as Chief Financial Officer and to the Board as an Executive Director on 23 September 2020. Skills and experience: Rachel has considerable experience in financial services gained from a career spanning more than 20 years. She has held senior finance roles in Metro Bank, where she was part of the original team that set up the bank, and Shawbrook where she was part of the successful Initial Public Offering (‘IPO’). Prior to joining STB, Rachel was CFO at AIB Group (UK) plc. She brings a wealth of banking experience focussed on high growth start up organisations and wider financial services experience gained in asset management, life, pensions and general insurance. She is a qualified chartered management accountant. Rachel’s considerable experience in finance and banking proves invaluable in her role as Chief Financial Officer. She has a deep understanding of the Group’s businesses and strategy and has a strong track record of creating shareholder value.

Key Dates

May 2023
18th
Q1 TU
Actual
Aug 2023
9th
Interims
Actual
Nov 2023
8th
CMD
Actual
Jan 2024
25th
Q4 TU
Actual
Mar 2024
21st
Finals
Actual
May 2024
16th
AGM
Actual
Jul 2024
3rd
CMD
Actual
Aug 2024
14th
Interims
Actual
Nov 2024
8th
Q3 TU
Estimate
Jan 2025
25th
Q4 TU
Estimate
Mar 2025
21st
Finals
Estimate
May 2025
16th
Q1 TU
Estimate