TIDMARBB

RNS Number : 1703S

Arbuthnot Banking Group PLC

19 December 2016

FOR IMMEDIATE RELEASE

19 December 2016

Arbuthnot Banking Group PLC

Loan Portfolio Acquisition

Arbuthnot Banking Group PLC ("Arbuthnot" or "the Group") today announces that its wholly owned subsidiary Arbuthnot Latham ("AL") has completed the purchase of a private banking loan portfolio, which is mainly secured against residential property.

The loans are being purchased from Duncan Lawrie Ltd ("Duncan Lawrie"). As at 31 October 2016 the portfolio had total customer balances of approximately GBP44.9m and comprised 83 customer accounts. The average loan to value of the portfolio was 43% and the client yield was 5.21% (for the month of October) before applying any yield adjustment for the negotiated discount, which was 5% to the par value of the loans. This discount should result in a higher effective interest rate as the portfolio repays.

The consideration of GBP42.7m (which is subject to certain completion adjustments relating to the period up to 31 January 2017) will be satisfied in cash from the Group's resources.

Enquiries:

 
 Arbuthnot Banking Group 
  Henry Angest, Chairman and Chief Executive 
  Andrew Salmon, Group Chief Operating 
  Officer 
  James Cobb, Group Finance Director 
  Ian Henderson, Group Director and             0207 012 
  Chief Executive Arbuthnot Latham               2400 
 Stifel Nicolaus Europe Ltd trading 
  as KBW (Nomad and Joint Broker) 
  Robin Mann 
  Gareth Hunt                                   0207 710 
  Stewart Wallace                                7600 
 Numis Securities Ltd (Joint Broker) 
  Chris Wilkinson                               0207 260 
  Andrew Holloway                                1000 
 Bell Pottinger (Financial PR)                  0203 772 
  Ben Woodford                                   2563 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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December 19, 2016 02:00 ET (07:00 GMT)

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