The specialist bank has seen real estate finance lending balances rise 50% year-on-year to ?£541.4m, while its overall loan book increased to more than ?£1.5bn, up 34% (H1 2016: ?£1.13bn).

The results have come after Secure Trust Bank reshaped its business model, which saw the growth of lower-risk real estate finance lending, the ending of non-prime unsecured personal lending and sub-prime motor finance, and the launch of its mortgage range.

Secure Trust Bank revealed that its underlying profit before tax fell by 10%, but said the benefits of its repositioning are expected to be more visible in 2018 and beyond.

"2016 was a transformational year with record levels of profits from ongoing trading and the sale of our branch-based, sub-prime lending subsidiary Everyday Loans,' said Lord Forsyth, chairman of Secure Trust Bank.

“This was the start of an evolution of our business model away from higher-risk, higher-margin consumer lending to lower-risk activities.

“I am pleased with the progress made and expect the benefits of this repositioning to become more visible in 2018 and beyond."

Looking to the future, Paul Lynam, chief executive of Secure Trust Bank (pictured above), said its long-term strategic objective was to be active in consumer credit, SME finance and mortgage lending.

“This enables flexibility to restrict lending in areas which may be overheating and allocate capital for more sustainable returns.

“Notwithstanding the current uncertain economic outlook, I believe there is scope to pursue our strategic priorities by developing the business model organically and pursuing attractive acquisition opportunities.'

Paul revealed that it had engaged in a number of discussions relating to inorganic business opportunities, but these did not progress to a conclusion which was acceptable for the bank.

“Our previous M&A [mergers and acquisitions] activities have generated considerable shareholder value due in part to the discipline that we apply.

“We will continue to be disciplined in our approach to opportunities.

“We have reallocated capital to lower-risk lending segments and are pleased with the strong growth achieved here.

“We remain strongly capitalised and well positioned to grow the bank's lending portfolio in line with our ambition and risk appetite and have a clear growth strategy."