Secure Trust Bank posts record total group profit
Secure Trust Bank announced a record total group profit after tax of £137.5m for the year to 31 December on Thursday.
The London-listed firm said that result included the profit on disposal of the Everyday Loans Group in the first half of the year.
It said its banking operation traded strongly throughout the year, generating underlying profit before tax - excluding the profit on disposal - of £32.9m, which was 23% higher than the previous year.
The group also completed its move to a premium listing on the Main Market of the London Stock Exchange in the second half of the year.
“The record profit has further strengthened the group's balance sheet and capital ratios, creating capacity for the group to continue its growth despite the evolving economic environment,” Secure Trust Bank’s board said in a statement.
On a statutory basis, profit before tax was £25.0m, up 1% year-on-year, and it reported a common equity tier 1 ratio of 17.4% - up 3.8 percentage points.
Operating income was £118.2m, up 28%.
Basic earnings per share stood at 754.1p, and improvement of 378%, and underlying earnings per share were up 20% to 137.7p.
Ordinary dividends for 2016 totalled 75p per share, the board confirmed, including interim dividend of 17p per share paid in September and a proposed final dividend of 58p per share payable in May.
It added that a special interim dividend of 165p per share was paid in July 2016.
“The record profit after tax of £137.5m in 2016 enabled Secure Trust Bank to increase shareholder equity from £141.2m to £236.0m whilst distributing £43.1m in dividends,” said chairman Lord Forsyth.
“The Bank of England's recent consultation on ways to help create a more level competitive playing field in respect of capital is a possible step forward.
“Our successful move to the premium segment of the Main Market of the London Stock Exchange and our very strong capital and liquidity resources open up a wide range of strategic options as we enter our 65th year of operation.”