Secure Trust Bank exits debt purchase market

Debt purchase and collection company Intrum will take on its portfolio of loans, which comprises around 650,000 customer loans from third parties and Secure Trust Bank. Intrum will acquire the rights of Debt Managers to collect payments due under the loans within the portfolio. 

Debt Managers will service the portfolio under transitional service arrangements until the customers are notified, and until the collection and servicing of their loans are migrated to Intrum. 

Secure Trust Bank said the sale is in line with its strategy to focus on specialist lending segments that have the strongest prospects of “delivering sustainable and profitable medium to long-term growth”. It also expects the sale will enable an improvement in its cost income ratio, albeit with a reduction in net interest margin due to this lending mix change. 

Commenting on the news, Secure Trust Bank’s chief executive David McCreadie said: “The sale is in line with Secure Trust Bank’s strategy to simplify the group and focus on businesses that have the strongest prospects for delivering sustainable and profitable medium to long-term growth as outlined at our Capital Markets Day in November 2021.  

“Within these businesses, our key priority is to help more customers, extend our product offerings and further enhance our digital capabilities. The estimated net benefit and capital released in FY2022 from this sale will facilitate swifter progress in these areas.”