Press Release

Immediate Release

21 December 2017

Secure Trust Bank PLC ('STB', 'Secure Trust Bank' or the 'Company')

Sale of Unsecured Personal Loan Portfolio

The Board of Secure Trust Bank PLC announces that STB has today sold a portfolio of unsecured personal loans to Alpha Credit Solutions 8 S.à.r.l., a company owned by AnaCap Credit Opportunities III LP.

As previously highlighted, STB made the decision to withdraw from the unsecured personal loan market in 2016. The sale of the portfolio represents a full exit by STB from the unsecured personal loan market. The net book value of the portfolio as at 30 June 2017 was £48.5 million.

The portfolio contributed £2.1 million to profit before tax in FY16 and £1.3 million in 1H17, with the 1H17 result reflecting an improved loan impairment performance. The cash purchase consideration for the portfolio was calculated based on an agreed price for the portfolio as at 30 June 2017, adjusted for cash receipts STB has already received from the portfolio during the period up to the date of completion.

The net proceeds of sale, after transaction costs and subject to certain minor completion adjustments, are expected to amount to approximately £36.6 million which will be used for general corporate purposes including other forms of lending.

The effect of the transaction is to accelerate capital realisation to reinvest into STB's core business while removing any future credit risk associated with the portfolio. The profit arising on sale of the portfolio is expected to be approximately £0.5 million.

STB will continue to administer the portfolio until the completion of a migration of the portfolio to a third party administrator appointed by the purchaser. This is expected to have been completed by 14 March 2018.

The sale and purchase agreement contains customary warranties and indemnities for a transaction of this nature.

Enquiries:

Secure Trust Bank PLC

Paul Lynam, Chief Executive Officer

Neeraj Kapur, Chief Financial Officer

Tel: 0121 693 9100

Stifel Nicolaus Europe Limited (Joint Broker)

Robin Mann

Gareth Hunt

Stewart Wallace

Tel: 020 7710 7600

Canaccord Genuity Limited (Joint Broker)

Andrew Buchanan

Sunil Duggal

Tel: 020 7523 8000

Secure Trust Bank plc published this content on 21 December 2017 and is solely responsible for the information contained herein.
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