Secure Trust Bank: A Unique Approach to Banking
In a world where banks are facing criticism for their practices, Secure Trust Bank stands out as a winner. Led by ambitious CEO David Creadie, the bank’s mission is to help consumers and businesses achieve their goals. With a straightforward approach and a commitment to consistent service, Secure Trust focuses on lending in four key areas: goods and services, cars, professional property, and business.
One of Secure Trust’s main lending arms involves helping retailers offer interest-free credit to their customers. With partnerships with over 1,500 retailers, including big names like Watches of Switzerland and DFS, the bank is making credit more accessible. Additionally, Secure Trust provides financing to Premier League clubs, enabling them to offer season ticket deals to their fans.
Secure Trust used to primarily offer expensive loans to struggling shoppers, but they have since shifted their focus to interest-free credit for more affluent consumers. This change has resulted in lower bad debts and higher credit facilities. Last year alone, the bank increased lending by over £1 billion, demonstrating their growth while maintaining caution in selecting customers.
The bank also provides financing to nearly 500 car dealers and brokers, allowing them to offer deals to customers looking for second-hand vehicles. With cutting-edge technology, Secure Trust can process loans quickly and efficiently, allowing them to double their new business last year.
In the property sector, Secure Trust distinguishes itself by specializing in lending to individuals and small firms with multiple properties. By targeting experienced property owners with an average borrowing of £10 million, the bank minimizes bad debts. They also cater to small businesses by offering credit backed by assets like invoices. Industries such as food processing and manufacturing, which often have to wait for invoices to be settled, benefit from the bank’s up-front funding of up to 90% of the funds.
In the first quarter of 2023, net lending across the group grew by 17% to over £3 billion, and further growth is expected throughout the year. The bank’s loans are mostly funded by deposits, and Secure Trust is expanding in this area as well. In the first quarter of 2023, they attracted over £2.5 billion in savings, with continued growth anticipated.
Despite macro-economic concerns impacting their stock price, Secure Trust believes that their current trading and future prospects are far more promising. The bank is valued at just £107 million on the stock market, but with over 1.2 million customers and CEO David Creadie’s commitment to growth, Secure Trust is poised for success. Analysts predict a 13% increase in profits to £44 million this year, with dividends expected to reach 43p in 2023 and over 50p next year.
Investment in Secure Trust shares is an attractive option, especially considering their low stock price and a dividend yield of 7.5%. This unique bank is determined to make a mark in the industry and offers investors an opportunity to be a part of its success.
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