Arbuthnot Banking Group PLC Trading Update (3158U)
15 October 2014 - 5:00PM
UK Regulatory
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RNS Number : 3158U
Arbuthnot Banking Group PLC
15 October 2014
FOR IMMEDIATE RELEASE
15 October 2014
Arbuthnot Banking Group PLC
2014 Third Quarter Trading Update
Arbuthnot Banking Group PLC ("Arbuthnot" or the "Group") today
issues an update of trading for the three months to 30 September
2014.
The Group has traded strongly in the third quarter with both
banks seeing good demand for their products. As a result of the
GBP75m institutional placing of Secure Trust Bank shares, which was
completed on 9 July 2014, the capital base of the Group increased
by more than 80%. All of this new capital is available to support
growth.
Retail Banking
Secure Trust Bank (STB) has experienced strong demand for its
consumer finance lending, especially in Cycle and Motor Finance. It
also successfully launched its Season Ticket financing product and
expects this to develop further in 2015.
The bank has made good progress with the development of its SME
lending business. The Real Estate finance team has built up a
significant pipeline of good quality opportunities with prudent
loan to values. At the same time it has accelerated its recruitment
plans adding to both relationship management and credit risk
teams.
Secure Trust Bank Commercial Services, the invoice finance
division of the bank, launched as planned on 1 September.
STB's total new lending volumes written during Q3 2014 are over
87% higher than in the same period last year. The loan book, which
is now over GBP500 million, has performed consistently with the
trends reported in the first six months of 2014. Impairment levels
remain below those expected when the loans were originated.
Private Banking
The investment made by Arbuthnot Latham (AL) in its Private
Banking distribution continues to be rewarded.
The bank has seen a good flow of new client introductions
leading to attractive loan opportunities and further increases in
funds under management.
The Dubai branch has celebrated its first anniversary and
remains on track to break even in 2015 as planned.
The sale of certain assets of Gilliat Financial Solutions and
its subsequent cessation of business were completed during the
quarter, with no material impact on the profitability of AL.
Accordingly, the Group anticipates the full year results will be
marginally ahead of market expectations. Given the improving market
conditions and the enlarged capital base, the Group remains well
positioned to maintain its positive progress.
Note: Secure Trust Bank also today issued an update on trading
for the same three month period. The two announcements should be
read in conjunction with each other.
Enquiries:
Arbuthnot Banking Group 0207 012 2400
Henry Angest, Chairman and Chief Executive
Andrew Salmon, Group Chief Operating Officer
James Cobb, Group Finance Director
David Marshall, Director of Communications
Canaccord Genuity Ltd (Nominated Advisor) 0207 665 4500
Sunil Duggal
Numis Securities Ltd (Broker) 0207 260 1000
Chris Wilkinson
Mark Lander
Bell Pottinger (Financial PR) 0203 772 2563
Ben Woodford
Zoe Pocock
This information is provided by RNS
The company news service from the London Stock Exchange
END
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