Arbuthnot Banking Group PLC Third Quarter Trading Update (3854M)
October 13 2016 - 2:00AM
UK Regulatory
TIDMARBB
RNS Number : 3854M
Arbuthnot Banking Group PLC
13 October 2016
13 October 2016
ARBUTHNOT BANKING GROUP PLC
Third Quarter Trading Update and Announcement of Special
Dividend
Arbuthnot Banking Group PLC ("Arbuthnot", "ABG" or the "Group")
today issues an update of trading for the three months to 30
September 2016.
The Group has continued to trade well during the quarter.
The overall lending pipeline has shown good growth, although the
period of time between approval and drawdown of loans has
marginally increased.
The Commercial Bank continues to develop at a good rate. The
disruption in the larger UK banks has led to a number of direct
approaches from experienced bankers who are interested in the
potential that a well-established banking brand like Arbuthnot
Latham can offer commercial banking clients. Accordingly, we have
accelerated our expansion plans and are taking on new premises in
Manchester to cover the North West and expect to have a further six
commercial bankers in place by early 2017.
The recent reduction in the base rate will result in a short
term fall in Arbuthnot Latham's net interest margin, however, the
longer term impact of this may be reduced dependant on where rates
in the deposit market stabilise.
The significant transactions carried out by ABG in the first
half of the year which resulted in a first half profit of over
GBP225m have now been included in the capital base of the Group. As
a result of this, the Board are proposing to pay a further special
dividend of GBP3 per share, which equates to approximately GBP45
million. This will be paid on 18 November 2016 to shareholders on
the register on 21 October 2016.
Overall the Group remains confident that it can continue to
exploit opportunities that currently exist in the Financial
Services Industry and further develop and diversify the Group,
deploying the surplus capital in a considered manner.
Note: Arbuthnot Banking Group currently remains the largest
single shareholder in Secure Trust Bank PLC. Its 18.9% investment
is treated as an Associated Undertaking.
-ENDS-
Enquiries:
Arbuthnot Banking Group
PLC 0207 012 2400
Sir Henry Angest, Chairman
and Chief Executive
Andrew Salmon, Group Chief
Operating Officer
James Cobb, Group Finance
Director
David Marshall, Director
of Communications
Canaccord Genuity Ltd
(Nominated Advisor) 0207 665 4500
Sunil Duggal
Numis Securities Ltd (Broker) 0207 260 1000
Chris Wilkinson
Andrew Holloway
Bell Pottinger (Financial
PR) 0203 772 2563
Ben Woodford
Sam Cartwright
This information is provided by RNS
The company news service from the London Stock Exchange
END
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