Secure Trust loan book swells

Secure Trust Bank’s (STB) decision to steer towards lower risk lending looks vindicated, judging by its first-half trading performance. After ceasing to write new sub-prime motor, asset finance and unsecured personal loans last year, in favour of areas such as retail and invoice financing, the group’s cost of risk - that is, impairment losses as a percentage of the loan book – improved from 2.5 per cent a year ago to 1.9 per cent. Still, greater prudence hasn't sacrificed lending growth, and the lower cost of risk owes much to the 26 per cent swell in the loan book to £1.84bn, boosted by £610m in new business.