Secure Trust Bank to stop new vehicle finance lending, transitioning existing book into run-off

Secure Trust Bank, based in the UK, will stop new lending in the vehicle finance market, affecting 284 roles by 2030. This move comes amid scrutiny over commission disclosure practices in the UK motor finance sector. The bank expects a positive impact on its financial results by transitioning its existing vehicle finance book, valued at £558.3m ($761.6m) as of December 2024, into run-off, after incurring a company loss before tax of £21.8m in FY24. Secure Trust Bank plans to save over £25m in operating costs by 2030, with 284 roles at risk, including 78 in FY25. CEO David McCreadie stated the decision is aimed at prioritizing higher-returning businesses and simplifying the group.

Despite a 7% decline in new business value and an 8% drop in volumes in the consumer car finance market in April 2025 compared to the previous year, new business volumes in the new consumer car finance market rose by 11% in the first four months of 2025. Conversely, the consumer used car finance market saw a 4% decrease in new business value but a 2% increase in volumes in April 2025. Secure Trust Bank’s exit from vehicle finance will be reported as a non-core activity, with restructuring costs estimated at £5m. Another update is expected with the group’s interim results for the six months ending June 30, 2025.

Read more at Yahoo Finance: Secure Trust Bank exits new lending in vehicle finance