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Investegate |Arbuthnot Banking Announcements | Arbuthnot Banking: Further sale of shares in Secure Trust Bank PLC

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Advertisement feature: V12 Vehicle Finance s Prime launch bolsters dealers digital capabilities

  V12 Vehicle Finance (V12VF) - powered by Secure Trust Bank - has bolstered its financial offering with the launch of its new Prime Hire Purchase (HP) product. Launching its new Prime product in the wake of Covid-19, the Solihull-based company helps independent and franchised dealers across the UK, source, buy, sell and finance used vehicles more efficiently and more often. While the global pandemic has momentarily staggered the auto industry, the used car market has showcased its resilience and agility, underpinned by rapid digitalisation. Recognising the demand for digital solutions, the launch of V12VF’s HP Prime product has been welcomed by dealers who are taking advantage of technology to navigate through a demanding and uncertain market.

Edison Investment Research Limited: Secure Trust Bank (STB): Solid FY20, ready for growth

Edison Investment Research Limited: Secure Trust Bank (STB): Solid FY20, ready for growth
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Secure Trust Bank - Solid FY20, ready for growth

Secure Trust Bank - Solid FY20, ready for growth Secure Trust Bank (STB) reported FY20 PBT of £20.1m versus our estimate of £13m. The beat was mostly driven by lower than expected impairments (2.3% vs 2.7%). PBT was about 50% down on FY19, but the ROE of 6.2% shows resilience given the pandemic. STB s Q3 update and pre-close statement had already indicated that asset quality was better than expected and business volumes were holding up relatively well. The latest lockdown is affecting H121, but we estimate loan growth of 5% and 15% for FY21 and FY22. We see impairment dropping to 1.5% by 2022, which should help drive ROE to 11.1%. The share price has rebounded but STB still trades on an FY21 P/BV of 0.79x, despite a strong track record of value creating returns (ROE above COE). Its solid good capital base (CET1 14.2) supports management s strategy of seeking growth opportunities both organically and through possible M&A. We have increased our fair value to 2,163p/share (from 1,756

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