Banking group set to deliver annual profits in line with expectations

Arbuthnot Banking Group said it continued to make good progress in the fourth quarter of 2018, which it said should produce underlying full year pre-tax profits in line with market expectations.

In a trading update ahead of its final results announcement for the year ended December 31, 2018, scheduled for March 28, the group, which has a Manchester operation in the city’s King Street, said the results will include a one-off adjustment reducing the anticipated liability related to the management team earn out for the acquisition of Renaissance Asset Finance (RAF).

The adjustment is expected to be approximately £2.5m and will, therefore, increase the reported pre-tax profits accordingly.

Regardless of the adjustment, RAF continues to trade well and has seen its customer loan balances increase by 21% during the year.

The group’s other new ventures are also making good progress.

Arbuthnot commercial asset based lending division ended the year with drawn balances of £25m and issued facilities of £43m, having made its first loan in May 2018.

The Arbuthnot specialist lending business, which will focus on providing short-term secured lending solutions to professional property businesses and entrepreneurs, is currently undertaking a soft launch and has had Credit Committee approval for its first customer loan.

Arbuthnot direct deposit platform went live this week following a successful pilot. This will enable clients to access deposit products via this new internet platform with rates advertised on “best buy” tables.

The group said this enables it to grow and diversify its revenue and funding sources following the sale of its majority investment in Secure Trust Bank.

Close