Secure Trust net lending increases in Q3

(Sharecast News) - Specialist lender Secure Trust Bank said on Wednesday that both net lending and deposits had increased in the three months ended 30 September.

Secure Trust said its customer loan book grew by 1.7% in the quarter and 14.2% compared year-on-year to £3.21bn, with "strong growth" of 16.4% delivered by its commercial finance unit. Real estate finance lending was consistent with Q2 and consumer lending grew by 1.1% in the quarter and 23.2% compared to the same period in 2022.

The London-listed group highlighted that it continued to raise deposits in a market that has seen a rise in the cost of retail funding, with customer deposits 2.6% higher at the end of the quarter and 15.7% higher than year-on-year.

Secure Trust added that total new business lending decreased by 7.3% in the quarter but increased 15.3% year-on-year, with business finance delivering 29.8% growth on Q2 and 62.5% growth on 2022.

Chief executive David McCreadie said: "The group has continued to grow in the third quarter and demonstrated the diversity of its business model with business finance contributing its highest quarterly new business volumes in over a year. Our positive momentum continues, given our strength in specialist markets and we remain on track to achieve our medium-term targets, including our plan to deliver £4.0m in annualised cost savings this year rising to £5.0m in 2024."

As of 1200 GMT, Secure Trust shares were up 1.20% at 607.20p

Reporting by Iain Gilbert at Sharecast.com