In its H1 interim statement, the bank said:
"We remain open to the possibility of competing in the UK mortgage market and have hired a team to undertake a detailed study to establish if we can build a sustainably viable proposition in this market alongside some of the other challenger banks. In particular we have been awaiting the outcome of the first budget of the new government and are now factoring the announcement in respect of tax relief changes on buy to let mortgages into our deliberations.
"Recent personal taxation changes have also served to increase the importance of the Cash ISA market. Setting this in context according to a Financial Conduct Authority report in Q1 2015, the Cash ISA market is estimated to be £185bn in size compared to the Fixed Rate Bond market at £145bn. STB does not currently have a Cash ISA proposition so we are progressing plans to build a capability to offer Secure Trust Bank ISAs in the market. This will help to diversify our funding sources and potentially reduce these costs noting the rates offered on Cash ISA products are typically 25% lower than on non-ISA products."
In H1, Secure Trust Bank's assets exceed £1 billion for the first time. It also announced a record 40% increase in profit before tax to £16.0m.
Paul Lynam, Chief Executive Officer, said:
“Today’s results show an ever growing number of customers being very satisfied with our products and services. We have written record volumes of new loans to consumers and businesses and have not compromised our underwriting standards as reflected in impairment levels being below the levels priced for when the loans were originated.
“To support our future ambitions we are exploring the potential to broaden our deposit products by entering the cash ISA market and are considering the merits of possible entry into the UK mortgage market. We believe we have continued to position the bank to capitalise on the significant opportunities available to it, in a controlled and prudent manner, and we look forward to the future with confidence.”
