Arbuthnot Banking 2022 Pretax Profit Rose on BoE's Rate Increases
30 March 2023 - 5:56PM
Dow Jones News
By Christian Moess Laursen
Arbuthnot Banking Group PLC said Thursday that its pretax profit
and net interest income rose significantly in 2022 thanks to the
Bank of England's rate increases, which are expected to further
boost revenue in 2023.
The private and commercial bank said its pretax profit rose to
20.0 million pounds ($24.6 million) in 2022 from GBP4.6 million in
2021, helped mainly by the increases of the Bank of England's base
rate during the year.
Net interest income increased to GBP99.1 million from GBP64.1
million.
The bank's assets under management decreased slightly to GBP1.33
billion from GBP1.36 billion, despite strong gross inflows of
GBP209 million, representing 16% of assets under management at the
start of the year, and an increase of 21% on year.
However, market turbulence from the war in Ukraine, along with
domestic inflationary pressure resulted in adverse market
performance, offsetting the net inflows during the year, the bank
said.
The bank's CET1 ratio as of Dec. 31 was 11.6% compared with
12.3% a year prior.
Looking ahead, the bank said revenue will benefit from further
rate increases in 2023, but that the cost-of-living crisis will
have an impact on the bank's cost base and the ability of borrowers
to maintain payments of loan facilities.
Arbuthnot said its board is recommending a final dividend of 25
pence a share, which is an increase from 22 pence a share in
2021.
Write to Christian Moess Laursen at christian.moess@wsj.com
(END) Dow Jones Newswires
March 30, 2023 02:41 ET (06:41 GMT)
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