Secure Trust Bank exits new lending in vehicle finance
The move comes as the motor finance industry faces scrutiny over commission disclosure practices in the UK.
Secure Trust Bank said its decision is expected to impact its financial results positively.
The bank plans to place its existing vehicle finance book, valued at £558.3m ($761.6m) as of December 2024, into run-off.
The vehicle finance segment generated a company loss before tax of £21.8m in FY24.
On an unaudited pro forma basis, the group anticipates an increase in adjusted profit before tax to £56.6m from £39.1m.
Additionally, the group expects an estimated 800 basis points increase in return on average equity (ROAE) before reinvesting the released capital from the motor finance business.
Secure Trust Bank said it will continue to support its existing customers and loan portfolio in vehicle finance.
As of 30 June 2025, the average consumer loan length outstanding was 37 months, with the longest contractual loan agreement being 60 months.
The unit accounted for approximately 30% of the group's adjusted operating costs in FY24, and the bank plans to save more than £25m of operating costs by 2030.
Secure Trust Bank stated it would consult with impacted colleagues, with 284 roles at risk by 2030, including 78 roles at risk in FY25.
Restructuring costs of approximately £5m are anticipated.
Vehicle finance will be reported as a non-core activity in the FY25 results and beyond.
A further update will be provided in the group's interim results for the six months ended 30 June 2025, due to release on 14 August 2025.
Secure Trust Bank CEO David McCreadie said: 'We have made the difficult decision to stop new lending in vehicle finance, our lowest-return business line, and to redeploy capital to our three higher-returning businesses of retail finance, real estate finance and commercial finance.
"This pivot will allow the group to prioritise these established specialist businesses and achieve further simplification of the group, combined with the removal of a significant level of costs. These measures will have a material positive impact on ROAE for the group and will position the group to be capital accretive."
According to the Finance and Leasing Association, the consumer new car finance market fell 7% in terms of new business value and 8% in volumes in April 2025 compared to April 2024.
However, new business volumes in the new consumer car finance market were up by 11% in the first four months of 2025 compared to the same period in 2024.
In contrast, the consumer used car finance market saw a 4% decrease in new business value in April 2025 while volumes grew by 2%.
"Secure Trust Bank exits new lending in vehicle finance" was originally created and published by Motor Finance Online, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
33 minutes ago
- Yahoo
O2, Three and iD Mobile most complained-about mobile providers
TalkTalk attracted the most complaints from broadband consumers and O2, Three and iD Mobile were the most complained-about mobile providers over the last quarter, latest Ofcom figures show. Plusnet generated the fewest complaints among broadband providers, while EE, Sky Mobile, Tesco Mobile and Vodafone were the least complained-about mobile providers, the regulator said. Ofcom publishes figures for complaints it receives about the UK's main landline, mobile broadband and pay-TV providers every quarter. It said O2's broadband customers mainly complained about how their grievances were handled, while Three customers were most often concerned about billing, pricing and charges. EE and TalkTalk were the most complained-about landline providers, while Utility Warehouse generated the fewest complaints. Virgin Media was the pay-TV provider that generated the most complaints, while Sky and TalkTalk customers were the happiest with their service. The figures cover complaints received by Ofcom from January to March. They remained similar to the previous quarter, but complaints about fixed broadband and pay-TV increased, the regulator said. Ofcom said it compiled and published the figures to help consumers see how their providers performed in relation to others, and to help them choose a new provider if they were thinking of switching. An Ofcom spokeswoman said: 'It's positive to see stable complaints numbers overall, which have come down over time. 'But this doesn't mean telecoms companies can sit back when it comes to customer service. Some providers have seen complaints about them increase, so we want to see further improvements.'
Yahoo
33 minutes ago
- Yahoo
Motorcyclist suffers life-changing injuries in crash which closed road overnight
A motorcyclist has suffered life-changing injuries in a collision which closed a road overnight. Officers from South Wales Police were called at 10.50pm on Wednesday, August 6, to a collision between a motorcycle and a car in Llangyfelach Road, Treboeth, Swansea. The road was closed in both directions between Brynhyfryd Cross and Pleasant View Terrace. The public were asked to avoid the area, with the road expected to be closed for "some time". A Wales Air Ambulance crew from Dafen arrived at the scene shortly before midnight. READ MORE: People ran as man wielded knife in Swansea city centre READ MORE: Crash shuts multiple lanes of M4 near Bridgend It remained closed for a number of hours throughout the night before re-opening on Thursday morning. Never miss a Swansea story by signing up to our newsletter here The motorcyclist suffered injuries which have been described as "life changing", police confirmed on Thursday. A spokesperson for the force said: "South Wales Police was called at 10:50pm yesterday (Wednesday August 7) to a collision between a motorcycle and a car between Brynhyfryd Cross and Pleasant View Terrace in Swansea. "The rider of the motorcycle has what are described as life-changing injuries, no arrests have been made, and the road is now open." Get daily breaking news updates on your phone by joining our WhatsApp community here. We occasionally treat members to special offers, promotions and ads from us and our partners. See our Privacy Notice
Yahoo
33 minutes ago
- Yahoo
DC Singh's blueprint for turning Scottish Cashmere into a multi-sector powerhouse
In the global business arena, few stories are as compelling as that of Didar 'DC' Singh Chalana. DC Singh's track record shows that he's not only creative, but he's also a mastermind who can turn virtually any business into profit. A man who built a global brand from scratch in luxury cashmere, expanded into property and healthy food, and now leads the charge in technology, all underpinned by a rare blend of design flair and entrepreneurial strategy. DC Singh: From Retail Assistant to Luxury Empire Builder In 2008, with no formal business training and finite resources, a young DC Singh landed in Edinburgh working as a retail sales assistant. He observed a crowded cashmere tourism market, yet the quality was lacking. At that moment, the seed of Edinburgh Cashmere was planted: a premium, design-led brand offering 100% pure cashmere and lambswool with unmatched craftsmanship. By 2014, Singh had officially launched Edinburgh Cashmere, and over the next decade he produced over 500 unique designs, from iconic 'DC Classic Check' tartan patterns to bespoke monograms. DC Singh Collaborates with Hollywood & Bollywood Stars and Strategic Business Partners for a Global Expansion What truly catapulted the brand to global relevance was Singh's knack for collaboration. He partnered with luxury fashion houses across Italy, France, and the UK, building exclusive lines, manufacturing limited editions, and co-creating special merchandise for football clubs. His factories became trusted suppliers to the world's top fashion names. These collaborations not only showcased his design excellence but also proved wildly profitable, often generating multi‑million-pound revenues per collection. Observers often refer to his influence in fashion and business as a kind of 'magic touch'. Flagship Brand & Global Expansion Singh rapidly scaled Edinburgh Cashmere internationally, opening flagship stores and launching e‑commerce deliveries in markets including the UK, USA, France, Japan, UAE, and beyond. In Dubai alone, the brand will soon debut a major store presence. International fashion media took note. The brand's collections have been featured in Vogue, Tatler, GQ, Grazia, and Singh's products frequently appear at Milan and Paris Fashion Weeks solidifying his design credentials and global cachet. Design‑Driven, Profit‑Focused: The Strategy That Works Singh's entrepreneurial philosophy combines uncompromising quality, trendsetting design, and strategic partnerships. He designed every logo and pattern personally and oversaw every production stage from raw material source to finishing. That design discipline, coupled with strong business tactics, enabled consistent million‑pound profits across verticals. His ability to anticipate market trends whether launching tartans or monograms or pivoting to health food and tech is a defining feature of his success. Singh's business mindset consistently focused on long-term value, not short-term gain. Diversification: Jewellery, Food, Real Estate & Health Beyond fashion, Singh built a multifaceted portfolio: Luxury Jewellery: His Lucchi line fuses Indian craftsmanship with Western design for couture jewellery and accessories. Healthy Food Franchise: With chefs and nutritionists, Singh created DC Tasty a fast-food concept offering healthy burgers and pizzas that is now poised for global franchise roll-out. Real Estate Development: His property arm spans residential and commercial projects in the UK and beyond, often employing eco-conscious construction and affordable housing methods. Each venture links back into his brand ethos premium, sustainable, and design focused. Technology: A New Frontier Perhaps the most disruptive next phase: Singh's expanding tech initiatives. He recently launched a ride‑hailing app promising higher earnings for drivers and savings for riders, with integrated environmental and safety standards. Beyond that, he plans to develop a suite of apps logistics, food delivery, AI-driven recommendation engines, and virtual showroom tools for both in-house brands and partner ecosystems. These platforms are being built with Silicon Valley partners, signalling significant scalability. Collaboration Grand Slam: Jacob & Co., Manish Malhotra & Expanding into Caribbean Sportswear Partnerships Singh's flair for partnerships took a bold leap recently with new collaborations: A limited-edition luxury watch line with Jacob & Co. A luxury lifestyle and couture collection with Bollywood legend Manish Malhotra High-performance sportswear for Caribbean football clubs, blending aesthetics and function. These ventures extend subjects from high fashion to sports and entertainment all underpinned by Singh's design magic and strategic planning. Sustainability and Ethics: Core Business, Not Side Note Sustainability isn't optional in Singh's ventures, it's foundational. From environmentally friendly dyeing techniques and energy-efficient manufacturing to ethical sourcing, each operation reflects a high-standard approach to environmental and social responsibility. He ensures fair labour conditions, local supplier partnerships, and minimal waste demonstrated that luxury and ethics can coexist profitably. The Magical Profits: Design + Business Intelligence Critics and industry insiders often invoke 'DC's magic touch' the rare ability to turn design vision into sustainable profit. Whether launching a tartan scarf line or co‑designing couture with Malhotra, Singh's projects routinely generate multi‑million dollar returns. Where most entrepreneurs split time between design and operations, Singh does both seamlessly creating products that resonate emotionally and deliver investor returns. Global Reach: Celebrities, Runways, and Retail Singh's brands feature in global fashion weeks, celebrity wardrobes, and elite publications. His collections appear at Milan, Paris, and New York; his scarves and sweatshirts have been seen on Hollywood stars and sporting figures. He uses such platforms strategically not just for exposure but for sustained credibility and traction in luxury markets. 2025 and Beyond: What's Next? Tech Rollout: Scaling ride‑hailing, food‑delivery, and logistics apps across major cities. Fashion Collaborations: New capsule collections with elite partners, sport clubs, and cultural fashion houses. Lucchi Jewellery Launch: Expanding globally into lifestyle and home décor. Global Franchises: DC Tasty to open in UAE, UK, and potentially US markets. Real Estate Expansion: Launching sustainable housing and commercial developments. Conclusion: A Formula for Modern Entrepreneurial Legacy DC Singh illustrates what's possible when design, strategy, ethics, and ambition intersect. From a small cashmere label in Edinburgh to a global empire spanning fashion, real estate, healthy food, and tech his journey reflects consistent excellence and calculated vision. His ever-growing valuations and dynamic collaborations underscore a core principle: quality first, design-led innovation always, profit by design. In 2025 and beyond, DC Singh isn't just broader and richer his story is now shaping global entrepreneurial standards. He isn't just a businessman. He's a designer-CEO, a strategic partner, a tech innovator, and above all, a visionary building an enduring brand all from scratch. DC Singh's Official Website Edinburgh Cashmere Official Online Store DC Milan Follow the socials to learn the latest about these luxury creations: Edinburgh Cashmere Instagram Facebook Twitter Google LinkedIn Pinterest YouTube
