Arbuthnot Banking Group PLC Pre-Close Trading Update (8038L)
January 14 2016 - 2:00AM
UK Regulatory
TIDMARBB TIDMSTB
RNS Number : 8038L
Arbuthnot Banking Group PLC
14 January 2016
PRESS RELEASE
For Immediate release
14 January 2016
ARBUTHNOT BANKING GROUP PLC
PRE-CLOSE TRADING UPDATE
Arbuthnot Banking Group PLC ("Arbuthnot" or "the Group") today
issues a pre-close trading update ahead of its preliminary results
announcement for the year ended 31 December 2015 which is scheduled
for 17 March 2016.
The Group continued to trade well in the fourth quarter and as a
result expects to report a pre-tax profit in line with market
expectations.
The sale of Everyday Loans is still expected to complete in the
first quarter of 2016 and it is anticipated this will increase the
regulatory capital base of the Group by 74%, before deducting the
surplus minority interest.
Retail Banking
Secure Trust Bank PLC ("STB") saw strong overall growth in its
lending portfolios, which resulted in the total loan book closing
in excess of GBP1BN, a growth rate of over 70%. Its consumer
lending was led by Retail Finance and Motor, with new volumes
materially higher than the prior year. STB has continued to make
progress in the development of its SME lending activities in 2015.
The Bank has seen strong demand for Asset Finance, Invoice Finance
and Real Estate Finance. New lending volumes are 65% higher than in
2014.
Conditions in the savings market remain favourable as the bank
continues to see good inflows of deposits across its product
offerings.
STB remains strongly capitalised and well-funded.
Private Banking
In the third quarter update on 15 October 2015 Arbuthnot Latham
and Co., Ltd. ("AL") noted that it had established a strong
pipeline of lending. As anticipated this lending was drawn down
during the fourth quarter and as a result the customer lending
balances have ended the year in line with market expectations.
The other lines of business in the Private Bank continue to make
good progress while the Commercial Banking division remains on
track with its developments.
During the fourth quarter, AL was in exclusive negotiations to
purchase a second portfolio of residential mortgages. This process
was nearing a successful conclusion when the Bank of International
Settlements ("BIS") published its second consultative document on
its proposed revision to the standardised approach for credit risk
on 10 December 2015.
While it is unclear how those proposals will eventually be
implemented, the management view was that the direction of travel
indicated would result in the anticipated return on capital from
the mortgage portfolio falling below the desired levels being
targeted by the Bank. As a result AL withdrew its offer and the
resultant one off transaction costs of approximately GBP450,000
will be recorded in December 2015.
Once again the Group has made significant progress during 2015,
finishing the year with customer lending in excess of GBP1.6BN, its
highest ever level.
Note: STB is also making a pre-close statement today which
should be read in conjunction with this statement.
-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
Zoë Pocock 020 3772 2566
This information is provided by RNS
The company news service from the London Stock Exchange
END
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