Secure Trust Bank has announced a 31.3% year-on-year increase in group profit before tax to £15.1m for the six months to 30 June 2018.

The business told the stock market that its repositioning of its business model towards lower risk lending in “attractive” market segments, and continued growth in both business finance and consumer finance, have led to income growth and reduced impairment losses.

Its loan book increased to £1,839.1m, up 25.9%.

Improvement in impairment performance has offset any impact of the new IFRS 9 accounting standard on reported profits. The cost of risk is down 20% compared with the same period in 2017.

Lord Forsyth, chairman, said: “I am pleased to report very good progress over the last six months including signing up our one millionth customer and improved profitability. This reflects well on the hard work and dedication of all our staff and their commitment to the business.

“This positive momentum sets us up well for the rest of 2018 and beyond notwithstanding the economic and political uncertainties.”

Paul Lynam, chief executive, said: “During 2016 and 2017 we repositioned our business away from higher risk, higher income consumer credit activities and reallocated capital to lower risk lending segments across a focused selection of attractive market segments. The growth of more than 36% in underlying profits before tax reported today clearly shows the benefits of this decision. Balance sheet and customer numbers have grown strongly in the first six months of 2018 as we have invested our capital.

“We remain well positioned to continue developing our business model in line with our ambitions, creating sustainable value for our consumer and SME customers, our people and our shareholders.”