Secure Trust Bank (STB) has launched the second £5m tranche of its £10m share buyback programme as it continues to return surplus capital following the sale of its Consumer Vehicle Finance business.
The specialist lender completed the first £5m tranche on 5 August, purchasing and cancelling a total of 323,406 ordinary shares.
The second tranche will commence on 7 September and run until either the £5m allocation has been used or 31 December 2026.
STB says the programme forms part of its approach to shareholder returns alongside its progressive dividend policy as it redeploys capital released from the disposal of the vehicle finance operation.
SHARES TO BE CANCELLED
Secure Trust Bank has appointed joint broker Shore Capital Stockbrokers to carry out purchases independently on its behalf.
Shares will be purchased on the London Stock Exchange or an EU regulated exchange and subsequently cancelled, reducing the number of STB ordinary shares in issue.
Shareholders granted the bank authority at its annual general meeting in May to purchase up to 1,910,681 ordinary shares.
Following the 323,406 shares acquired and cancelled during the first tranche, the remaining authority provides capacity for the second stage of the programme.
The buyback will operate within pre-set parameters and UK Listing Rules, although STB says purchases on individual days could represent more than 25% of daily trading volumes in its shares.
