Secure Trust Bank PLC has reported total group profit after tax of £129.1m for the six months to 30 June 2016.
This includes a £116.8m gain on sale from the disposal of the Everyday Loans Group.
The bank said it has been taking a defensive stance to mitigate any potential impacts arising as a result of the EU referendum vote.
The post-tax profits of £129.1m substantially increased the group’s capital and liquidity reserves. Underlying profits before tax, which primarily allow for the effect of the sale of Everyday Loans, are £17.4m which are 54% higher than the adjusted profit before tax for the first half of 2015 of £11.3m.
Its overall loan book increased to £1,128.3m, a 51.0% increase on H1 2015. Within the current loan book there is “minimal” commercial property lending, no regulated buy-to-let mortgage lending and the average life of the total portfolio is less than 30 months.
Sir Henry Angest, chairman, said: “For many decades Secure Trust Bank has adopted a prudent approach to risk management. The results announced today demonstrate the value of this long term thinking. The post-tax profits of £129.1 million are a record level of profit which has substantially increased the bank’s capital and liquidity reserves and provides a firm foundation for the next phase of the Group’s development as a Main Market listed business.”
Paul Lynam, chief executive, added: “I am pleased with the outstanding progress Secure Trust Bank has made in the first six months of 2016. We have continued to achieve high levels of customer satisfaction and attracted more than a net 6,000 new customers per week. We reshaped the business model and took a more defensive position ahead of the EU referendum via the sale of the Everyday Loans business and by very closely managing our lending exposures to house builders.
“The Group, having achieved a record level of total profit before tax of £131.8 million and a very healthy 54% year on year increase in adjusted interim profits before tax, is now well positioned to carefully navigate the evolving post Brexit economic environment and to pursue our strategic priorities.”
