Secure Trust Bank has reported its annual results are expected to be in line with expectations, despite proposing to cease new mortgage lending earlier this month.
In a statement released today (January 16), the bank claimed it had continued to trade strongly towards the end of last year and had entered 2019 with "positive business momentum, robust capital positions and very strong liquidity".
The bank reported its customer lending balances had grown to exceed £2bn for the first time, including mortgages, retail finance, motor finance and SME lending.
The positive outlook was despite a proposal to cease new residential mortgage business until market conditions become more "favourable", attributing the move to intensifying "pressures and competition" in the second half of 2018.
The bank pointed to increasing loan-to-value metric and lower net lending margins in the market shift, claiming it continues to be selective in respect of new lending activities amidst "heightened economic and political uncertainty".
A consultation with staff is expected to conclude at the end of February.
A Secure Trust spokesperson said any changes in the business that may arise from the proposal, following the conclusion of the consultation period with staff affected, are not expected to have a material impact on 2018 and 2019 earnings.
The spokesperson added: "The group's lending portfolio is appropriately positioned for the current conditions and the short duration nature of the asset portfolio means the Group can react quickly to both opportunities and threats."
Earlier this month rival Fleet Mortgages withdrew its entire product range with immediate effect, as the lender waits for its next funding line to be made available.
rachel.addison@ft.com
