Market's view on Secure Trust
Published on April 2024
- A Swiss Central Bank rate cut is noted, with speculation that UK might follow suit, potentially affecting market dynamics.
- Discussions include the end of tax loss selling for 2023 and the implications of possible interest rate cuts.
- Positive market movements are acknowledged, albeit without clear drivers.
- Analysis on potential upside versus downside over a three-year period is shared, considering factors like interest rates and bankruptcy rates.
- Concerns are raised about a significant share price drop, prompting sale of shares and considerations for repurchasing.
- During a capital markets day, a financial update is provided with revised medium-term targets including loan book growth and cost income ratio, alongside the expected savings from a cost optimisation programme.
- Debates occur over the strength of the capital position and its impact on dividend payouts.
- Financial obligations such as the repayment of borrowings under the TFSME scheme are highlighted, noting potential impacts on margins.
- Discussions about the benefits of a recovery play in the stock market, focusing on specific companies.
- A shift to a progressive dividend policy is discussed, aimed at providing greater stability and predictability in payouts.
- The impact of a conservative banking approach during challenging economic times like Covid and inflation is analysed, mentioning provisions made for future liabilities.
- Overall, there is a mix of optimism and caution with a focus on strategic financial management and market conditions.