Secure Trust Bank increased net lending balances by 4.9% to £3.5bn during the first half of 2026, with £40m of bridging loans originated by its business finance division.
The specialist bank reported adjusted profit before tax of £31.3m for the six months to 30 June, up 9.4% from £28.6m a year earlier.
Total profit before tax rose by 40.8% to £31.4m, reflecting improved profitability and lower losses from the discontinued vehicle finance business.
Secure Trust Bank’s adjusted return on required equity increased by 60 basis points to 14.5%, while its risk-adjusted margin remained unchanged at 4.2%. The cost of risk fell to 0.9%, from 1% in the corresponding period of 2025.
The group said it had delivered £5.5m of cost savings during the half year, giving an annualised run rate of £15m. Its adjusted cost-income ratio rose from 45.5% to 46.5%, in line with its guidance for 2026.
Within business finance, the bank originated £40m of bridging loans and said its newly established speciality finance team was generating a pipeline for the second half. It also launched a digital application portal for bridging customers.
Secure Trust Bank secured retail finance partnerships with Magnet and Centrica British Gas and added 19 smaller home-improvement retailers. It also launched a base-rate tracker product and signed its first deposit aggregator relationship.
The bank’s Common Equity Tier 1 ratio increased by 140 basis points to 14.3% following its exit from vehicle finance.
A £10m share buyback programme is under way. The first £5m tranche has been completed, with a second £5m tranche planned for the second half of the year.
The interim dividend was increased by 5.1% to 12.4p a share, while adjusted basic earnings per share rose by 12.7% to 126.4p.
Secure Trust Bank retained its guidance for net lending growth of between 8% and 10% in 2026, an improvement of about 10 basis points in its risk-adjusted margin and a cost-income ratio of about 47%. It expects a Common Equity Tier 1 ratio of about 13.5%.
Its medium-term targets include annual net lending growth of about 10% and a return on average equity of more than 16%.
Ian Corfield, chief executive of Secure Trust Bank, said: “In March this year, we set out a new set of strategic priorities and medium-term targets for delivery in FY 2028.
“I am pleased with the Group’s growth in lending, profits and returns in the first half of 2026, which already reflects strong execution against our plans and reinforces confidence in our medium-term targets.
“The actions we have taken to reposition the Group for sustainable growth and improved returns are delivering results and strengthening our ability to serve customers better and create long-term value for shareholders. The Group remains on track to achieve its FY 2026 guidance.”
