Secure Trust Bank
Website:
Secure Trust Bank
Index:
FTSE Small Cap
EPIC: STB
Supersector:
Banks
Sector:
Banks
Subsector:
Banks
Market Cap:
£240.36M
Payout Frequency: Semi-Annual
Secure Trust Bank Dividend Analysis and Summary
Headline dividend details
- Final dividend: 23.7 pence per share (FY25)
- Total FY25 dividend: 35.5 pence per share (up 5.0% YoY from 33.8p)
- Ex-dividend date: 23/04/2026
- Record date: 24/04/2026
- Payment date: 21/05/2026
- Policy: Progressive dividend policy reaffirmed
- Indicative yield: ~2.9% based on 35.5p and £12.45 share price at 31 Dec 2025
Dividend cover and affordability
- Continuing EPS: 238.8p; dividend cover ~6.7x
- Total EPS (incl. discontinued): 94.2p; dividend cover ~2.7x
- Cash cost: c. £6.6m for the FY25 dividend (interim £2.2m + final £4.4m)
- Capital position: CET1 12.9% at year-end; 14.7% pro forma post sale of Consumer Vehicle Finance; target CET1 ~13%
Capital returns beyond the dividend
- Share buyback: Intention to commence a £10m programme over 12 months (subject to regulatory approval), alongside the dividend
Context from results and guidance
- Continuing PBT £59.3m; ROAE 14.3% (continuing); NIM stable at 4.7%; cost/income improved to 45.2%
- Total PBT £27.5m after exceptional items linked to motor finance redress and Vehicle Finance exit
- Medium-term targets: c.10% annual net lending growth and ROAE >16%
- 2026 guidance: transitional year; cost/income ~47%; progressive dividend policy maintained
Analysis: sustainability and growth trajectory
- Sustainability: The dividend is well-covered by continuing earnings (c. 6.7x), with ample capital headroom (pro forma CET1 14.7% vs ~13% target). Cash outflow is modest relative to profits, supporting resilience through a transitional 2026.
- Growth potential: FY25 total DPS grew 5%. Management reiterates a progressive policy and is targeting >16% ROAE in the medium term with c.10% annual lending growth and structural cost improvements. Scope exists for further DPS growth, although FY26 is flagged as transitional.
- Support from performance and allocation: Stable NIM, improving cost/income and solid deposit growth underpin capacity to fund both lending and distributions. The £10m buyback suggests confidence in capital generation and may enhance per-share metrics even if absolute cash dividends grow gradually.
Structural changes and policy factors to watch
- Exit and sale of Vehicle Finance (completed 25 Feb 2026): Simplifies the group, reduces earnings volatility, and releases capital, supporting dividends and buybacks.
- Cost programme: Targeting £25m of run-rate cost removal by 2028 (brought forward from 2030), albeit with higher restructuring costs; should enhance medium-term dividend capacity.
- Capital framework: Ambition to maintain CET1 ~13% and return surplus via progressive dividend and buybacks, balancing growth investment and distributions.
- Regulatory regime: Transition to SDDT regime (Jan 2027) expected to be neutral; no material capital impact guided.
Risks and flags for dividend stability
- Motor finance redress: Provision at £21.5m; management indicates a potential further ~£6m increase if the FCA scheme proceeds as proposed. STB retains liability for redress on the sold Vehicle Finance loans. Final FCA rules expected by end-March 2026.
- Transitional 2026: Elevated cost/income (~47%) and product launches could temper near-term earnings growth, albeit the dividend is well covered.
- Credit/cycle risk: Cost of risk rose to 1.0%; macro uncertainty persists (inflation path, unemployment). Discipline on pricing/credit remains important to protect cover.
- Regulatory approval dependency: The £10m buyback is subject to regulatory approval; adverse outcomes could shift the mix of capital returns.
Read more
Secure Trust Bank Annual Dividend Yield - 2.72%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 24/04/2025 |
22/05/2025 |
Final |
22.50p |
GBX |
| 28/08/2025 |
25/09/2025 |
Interim |
11.80p |
GBX |
Total (Annual Dividends Per Share):
34.30p
Dividend Yield =
Annual Dividends Per Share (34.30p)
÷ Share Price (1262p)
= 2.72%
Secure Trust Bank Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 23/04/2026 |
21/05/2026 |
Final |
23.7000p |
GBX |
| 28/08/2025 |
25/09/2025 |
Interim |
11.80p |
GBX |
| 24/04/2025 |
22/05/2025 |
Final |
22.50p |
GBX |
| 29/08/2024 |
26/09/2024 |
Interim |
11.30p |
GBX |
| 25/04/2024 |
23/05/2024 |
Final |
16.20p |
GBX |
| 31/08/2023 |
28/09/2023 |
Interim |
16.00p |
GBX |
| 27/04/2023 |
25/05/2023 |
Final |
29.10p |
GBX |
| 25/08/2022 |
26/09/2022 |
Interim |
16.00p |
GBX |
| 21/04/2022 |
19/05/2022 |
Final |
41.10p |
GBX |
| 26/08/2021 |
27/09/2021 |
Interim |
20.00p |
GBX |
| 22/04/2021 |
21/05/2021 |
Final |
44.00p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
11.300 |
16.200 |
GBX |
27.500 |
-39.020 |
| 2023 |
16.000 |
29.100 |
GBX |
45.100 |
-21.010 |
| 2022 |
16.000 |
41.100 |
GBX |
57.100 |
-10.780 |
| 2021 |
20.000 |
44.000 |
GBX |
64.000 |
|
Secure Trust Bank Dividend Calculator
Secure Trust Bank Dividend Growth
| Dividend Growth (1Y) |
5.03%
|
| Dividend CAGR (5Y) |
-4.2%
|
| Years of Growth |
1
|
| Payout Ratio |
39.88%
|
| Buyback Yield |
-1.55%
|
| Shareholder Yield |
1.27%
|
| P/E Ratio (TTM) | 5.53 |
|---|
| Forward P/E | 4.9 |
|---|
| P/FCF | – |
|---|
| Earnings Yield | 7.38% |
|---|
| FCF Yield | -3.9% |
|---|
| ROE | 12.14% |
|---|
| ROCE | – |
|---|
| Profit Margin | 13.15% |
|---|
| Operating Margin | 44.32% |
|---|
| Gross Margin | – |
|---|