Secure Trust Bank has announced it will sell its consumer vehicle finance operations to LCM Partners for approximately £459 million (around $620 million). The move comes as part of the bank’s strategic decision to focus on its core banking activities amid increasing financial pressures.
The sale is motivated by mounting provisions related to potential refunds for missold car loans, which have impacted the bank’s profitability. By offloading its vehicle finance unit, Secure Trust Bank aims to strengthen its financial position and reduce associated liabilities.
LCM Partners, an investment firm specializing in acquiring specialized financial assets, will take over the consumer vehicle finance operations. The transaction is subject to customary closing conditions and regulatory approval.
This development reflects broader challenges faced by financial institutions dealing with legacy issues stemming from past lending practices. Secure Trust Bank has stated its commitment to maintaining strong customer service throughout the transition process.