Arbuthnot Banking Group PLC 2015 Third Quarter Trading Update (3046C)
October 15 2015 - 2:00AM
UK Regulatory
TIDMARBB
RNS Number : 3046C
Arbuthnot Banking Group PLC
15 October 2015
PRESS RELEASE
For Immediate Release
15 October 2015
ARBUTHNOT BANKING GROUP PLC
2015 Third Quarter Trading Update
Arbuthnot Banking Group PLC ("Arbuthnot" or the "Group") today
issues an update on trading for the three months to 30 September
2015.
The Group has continued to make good progress in the quarter and
has reached another significant milestone in its development as
total assets have exceeded GBP2 billion for the first time.
Retail Banking
Secure Trust Bank (STB) traded strongly during the quarter.
Demand for its consumer lending products remained healthy,
especially in Retail and Motor Finance, where lending volumes are
materially higher than the previous year.
The SME lending divisions continue to make positive progress. As
a result, the overall lending balances of the Bank have now
exceeded GBP900 million.
STB continues to see favourable conditions in the retail deposit
market and remains able broadly to match its lending growth by
attracting deposits into two, three, four, five and seven year
fixed rate products.
The Bank has continued its investment for the future and is in
the process of developing a deposit platform that will enable STB
to offer Cash ISA products. Also the Bank recently announced the
appointment of Ian Henderson who will be responsible for strategy,
personal lending and mortgages. Ian was recently the CEO of
Kensington Mortgages and prior to that the CEO of Shawbrook
Bank.
Private Banking
Arbuthnot Latham (AL) has seen a continued increase in the
number of new client introductions and is now taking on in excess
of 50 new clients per month.
As noted in the 2015 interim results, AL has seen an increase in
market activity following the decisive outcome of the General
Election. As a result a healthy pipeline of approved lending
applications has been generated. However, the improvement in the
property market has resulted in the repayment of a number of loans,
as projects have been completed. This has resulted in a temporary
slowing of the growth in customer lending balances. Given the
robust nature of the pipeline, we anticipate that this will recover
and the year-end balance will be in line with market
expectations.
Following the Bank's stated intention to develop its commercial
banking capabilities, AL was pleased to announce recently the
arrival of Stephen Fletcher to lead this business. Stephen was
previously a Managing Director at Coutts with over 25 years of
experience in these markets.
Overall the Group remains confident that it can continue to make
positive progress and seize the opportunities that exist for both
its banks. Accordingly, we expect the Group's results to be in line
with market expectations for 2015. However, we continue to monitor
the increasingly uncertain economic environment and remain vigilant
as to the impact that the current geopolitical events may have on
our plans.
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.
-ENDS-
Enquiries:
Arbuthnot Banking Group
Sir Henry Angest, Chairman
and Chief Executive
Andrew Salmon, Group Chief
Operating Officer
James Cobb, Group Finance
Director
David Marshall, Director
of Communications 020 7012 2400
Canaccord Genuity Ltd
(Nominated Advisor)
Sunil Duggal 020 7665 4500
Numis Securities Ltd (Broker)
Chris Wilkinson
Mark Lander 020 7260 1000
Bell Pottinger (Financial
PR)
Ben Woodford
Zoe Pocock 020 3772 2563
This information is provided by RNS
The company news service from the London Stock Exchange
END
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