Secure Trust Bank has agreed to sell its Consumer Vehicle Finance business to LCM Partners for £458.6 million as part of a strategic initiative to improve returns on equity.

Information on the Target

Secure Trust Bank PLC (STB.L) has disclosed its decision to divest its Consumer Vehicle Finance business. The expected sale will be conducted at an approximate value of £458.6 million and is part of the bank's ongoing strategy to optimize its capital allocation. Following the sale's completion, anticipated in the first quarter of 2026, Secure Trust Bank will discontinue recording the consumer vehicle finance portfolio and will manage the portfolio on a commission basis until the designated migration period in the second quarter of 2026.

The divestment signals Secure Trust Bank's objective to enhance its Return on Average Equity by reallocating resources towards its core operations which are expected to yield higher returns.

Industry Overview in the Target’s Specific Country

The UK consumer vehicle finance market has been evolving rapidly, driven by shifting consumer preferences towards flexible financing op