TIDMARBB

RNS Number : 2201A

Arbuthnot Banking Group PLC

18 December 2014

PRESS RELEASE

For Immediate Release

18 December 2014

ARBUTHNOT BANKING GROUP PLC

Mortgage Portfolio Acquisition

Arbuthnot Banking Group PLC ("Arbuthnot" or the "Group") today announces that its subsidiary Arbuthnot Latham ("AL" or "the Bank") has completed the purchase of a residential mortgage portfolio.

The mortgages are being acquired from the administrators of the Dunfermline Building Society ("DBS"). The portfolio has been in run off since 2009 and was previously acquired by DBS from other originators principally GMAC with the balances being geographically distributed around the UK.

Based on balances at 31 October 2014, the portfolio consists of loans totalling GBP117.6 MN of which 58 per cent are residential buy to let and the remaining are owner occupied. The average loan to value is 72 per cent with a current expected yield of approximately 4 per cent.

The consideration of GBP106.3 MN has been satisfied by cash from the Group's resources.

Having regard to the recent developments in the Sterling Monetary Framework, including the Funding for Lending Scheme ("FLS"), this transaction will further diversify AL's asset base which may be offered as collateral. This should enable the Bank to use more sophisticated and stable mechanisms, with which to manage its liquidity.

Enquiries:

 
 Arbuthnot Banking Group 
  Henry Angest, Chairman 
  and Chief Executive 
  Andrew Salmon, Group Chief 
  Operating Officer 
  James Cobb, Group Finance 
  Director 
  David Marshall, Director        020 7012 
  of Communications                   2400 
 Canaccord Genuity Ltd 
  (Nominated Advisor)             020 7665 
  Sunil Duggal                        4500 
 Numis Securities Ltd (Broker) 
  Chris Wilkinson                 020 7260 
  Mark Lander                         1000 
 Bell Pottinger (Financial 
  PR) 
  Ben Woodford                    020 3772 
  Zoë Pocock                     2500

This information is provided by RNS

The company news service from the London Stock Exchange

END

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