Secure Trust Bank hails 'strong' start to year

Secure Trust Bank said on Wednesday that it was confident about meeting its full-year targets following a "strong" start to the year.

In an update for the first four months of the year, the company said earnings were "slightly ahead" of management's expectations and it entered 2019 with "positive business momentum, healthy capital positions and very strong liquidity".

As a result, it expects to meet its full-year targets, "notwithstanding continued political and economic uncertainty".

Secure Trust said that its lending portfolio remains appropriately positioned for current economic conditions and the short duration nature of the asset portfolio means it can react quickly to market opportunities and threats.

It said that while the SME businesses have continued to grow, some transactions have been deferred as customers await further clarity on Brexit.

"There has been no discernible change in the behaviour of the bank's consumer customers who are benefitting from low inflation, record employment and rising earnings," it said.

"Credit quality trends have been stable with the benefits of the strategic repositioning of the balance sheet continuing to come through.

"The short term economic outlook has improved but remains uncertain. As a result the bank will continue to adopt a cautious stance in respect of its credit risk appetite."

At 1545 BST, the shares were up 4.2% at 1,500p.