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Secure Trust Bank maintains cautious stance on consumer lending

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Secure Trust Bank maintains cautious stance on consumer lending

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(Reuters) – Secure Trust Bank <STBS.L> maintained its cautious stance on consumer lending due to ongoing economic uncertainty and regulatory warnings, as it reported growth in its loan book for the third quarter. “A move away from higher risk, consumer unsecured and sub-prime motor products remains the correct course of action and aligns with the UK’s economic and regulatory backdrop,” the bank said in a statement. Britain’s financial regulators have warned lenders are being too complacent about the risks from rapid growth in consumer credit at a time when household incomes are barely rising. Secure Trust, which offers both business and consumer finance, said its business finance unit continued to make progress in the quarter, reducing the company’s exposure to large prime central London house building. The former retail bank of Arbuthnot Banking Group <ARBB.L> said it had continued to shift the focus of its motor business to lower risk, lower margin lending and that the run off portfolios in unsecured personal lending and sub-prime motor had performed as expected during the period.

(Reporting by Noor Zainab Hussain in Bengaluru, editing by Anjuli Davies)
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