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    STB   GB00B6TKHP66


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Edison Investment Research Limited : Secure Trust Bank (STB): Solid FY20, ready for growth

04/12/2021 | 05:52am EDT
Edison Investment Research Limited 
Edison Investment Research Limited: Secure Trust Bank (STB): Solid FY20, ready for growth 
12-Apr-2021 / 10:50 GMT/BST 
London, UK, 12 April 2021 
Secure Trust Bank (STB): Solid FY20, ready for growth 
Secure Trust Bank (STB) reported FY20 PBT of GBP20.1m versus our estimate of GBP13m. The beat was mostly driven by lower 
than expected impairments (2.3% vs 2.7%). PBT was about 50% down on FY19, but the ROE of 6.2% shows resilience given 
the pandemic. STB's Q3 update and pre-close statement had already indicated that asset quality was better than expected 
and business volumes were holding up relatively well. The latest lockdown is affecting H121, but we estimate loan 
growth of 5% and 15% for FY21 and FY22. We see impairment dropping to 1.5% by 2022, which should help drive ROE to 
11.1%. The share price has rebounded but STB still trades on an FY21 P/BV of 0.79x, despite a strong track record of 
value creating returns (ROE above COE). Its solid good capital base (CET1 14.2) supports management's strategy of 
seeking growth opportunities both organically and through possible M&A. We have increased our fair value to 2,163p/ 
share (from 1,756p) mainly due to rolling forward one year. 
We obtain a fair value (FV) of 2,163 per share using a net asset value (NAV) approach. We continue to assume a 
sustainable ROE of 13.5%, 10% in COE and 2% annual growth. FV is the present value (PV) of the (ROE-g)/(COE-g) formula 
at end 2022 discounted to FY21. The 2,163p value implies an FY21e P/BV of 1.4x; STB is currently trading on a 0.79x P/ 
BV ratio. 
Click here to view the full report. 
All reports published by Edison are available to download free of charge from its website 
About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the 
widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, 
family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the 
darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. 
Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. 
Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in 
Athens, Johannesburg and Sydney. 
Edison is authorised and regulated by the Financial Conduct Authority. 
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not 
solicitations to buy or sell any securities. 
For more information, please contact Edison: 
Pedro Fonseca +44 (0)20 3077 5700 financials@edisongroup.com 
Andrew Mitchell +44 (0)20 3681 2500 financials@edisongroup.com 
Learn more at www.edisongroup.com and connect with Edison on: 
LinkedIn        https://www.linkedin.com/company/edison-group-/ 
Twitter           www.twitter.com/Edison_Inv_Res 
YouTube       www.youtube.com/edisonitv 
Dissemination of a CORPORATE NEWS, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 

1183544 12-Apr-2021

(END) Dow Jones Newswires

April 12, 2021 05:51 ET (09:51 GMT)

Stocks mentioned in the article
ChangeLast1st jan.
DJ INDUSTRIAL 0.43% 35609.34 Delayed Quote.15.20%
SECURE TRUST BANK PLC 2.92% 1183.6 Delayed Quote.31.43%
10/01SECURE TRUST BANK : Character World dreams big with Secure Trust Bank facility
09/29FTSE 100 Rallies on Easing Stagflation Fears, Bargain Hunters
09/29FTSE Gains, Sterling's Selloff Seen as Overdone
09/29FTSE Gains, Pound's Weakness May Be Driven by Month-End Rebalancing Flows
09/09SECURE TRUST BANK : appoints new Real Estate Finance regional heads
09/08ARBUTHNOT BANKING : Raises $3.4 Million Via Secure Trust Bank Shares Sale
08/26SECURE TRUST BANK PLC : Ex-dividend day for interim dividend
08/05FTSE 100 Falls as BOE Inflation Forecasts Boost Sterling
08/05FTSE 100 Flat, BOE Policy Sequencing Review Could Hit Pound
08/05London Shares Fall Ahead of BOE Policy Decision
More news
Analyst Recommendations on SECURE TRUST BANK PLC
More recommendations
Sales 2021 165 M 228 M 228 M
Net income 2021 38,6 M 53,2 M 53,2 M
Net Debt 2021 - - -
P/E ratio 2021 5,57x
Yield 2021 4,43%
Capitalization 214 M 296 M 296 M
Capi. / Sales 2021 1,30x
Capi. / Sales 2022 1,15x
Nbr of Employees 1 003
Free-Float 89,2%
Duration : Period :
Secure Trust Bank PLC Technical Analysis Chart | STB | GB00B6TKHP66 | MarketScreener
Technical analysis trends SECURE TRUST BANK PLC
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus BUY
Number of Analysts 4
Last Close Price 1 150,00 GBX
Average target price 1 797,80 GBX
Spread / Average Target 56,3%
EPS Revisions
Managers and Directors
David Andrew McCreadie Chief Executive Officer & Director
Rachel Michelle Lawrence Chief Financial Officer & Executive Director
Michael Bruce Forsyth Non-Executive Chairman
Roy Aston Chief Technology Officer
David Nield Chief Operating Officer
Sector and Competitors