02/11/2011 The London Stock Exchange welcomes Secure Trust Bank plc to AIM
The London Stock Exchange today welcomes Secure Trust Bank plc on its first day of trading on the AIM Market of the London Stock Exchange.
STB is a regulated bank. The Company, which was incorporated in England in 1954, operates predominantly from its head office in Solihull and had 260 employees as at 30 June 2011.
The Company has a diversified lending portfolio including motor finance, retail point of sale finance and personal unsecured lending. Lending customers are primarily reached through carefully selected business partners and the internet. The Company has developed underwriting technology and processes to enable it to make lending decisions quickly, often on an automated basis, and has high customer satisfaction scores. The Board believes that this has been a key attraction in particular for its affinity partners (being business relationships entered into by the Company where both STB and the affinity partner co-operate in the promotion of their respective businesses).
By virtue of its focus on higher margin lending, the absence of large fixed overheads in the form of a branch network and a policy of not cross-subsidising loss making products with profitable ones, the Company is able to offer competitive deposit interest rates and has been successful in attracting term deposits from a wide range of personal and non-personal customers. STB’s lending is funded by customer deposits, and, accordingly, STB has no exposure to wholesale funding.
Paul Lynam, Chief Executive Officer of STB, said:
“We believe we can build substantially on our current position through a continued focus on carefully selected attractive segments of the market, prudent underwriting and a prudent approach to capital and liquidity. The IPO of Secure Trust Bank will fund further growth in the business, raise its profile and is the next logical step for the Company.”