Arbuthnot Banking Group – Audited final results for the year to 31 December 2021
Arbuthnot Banking Group today announces its audited results for the year ended 31 December 2021.
Arbuthnot Banking Group PLC is the holding company for Arbuthnot Latham & Co., Limited.
• Profit Before Tax of £4.6m (2020: loss £1.1m*)
• Operating income increased to £88.7m (2020: £72.5m)
• Earnings per share of 45.2p (2020: negative 8.9p)
• Final dividend declared of 22p (2020: nil**)
• Special dividend of 21p and interim dividend of 16p already paid in the year (2020: nil)
• Net assets of £200.9m (2020: £194.0m)
• Net assets per share of 1315p (2020: 1270p)
• Total capital ratio of 14.9% (2020: 18.7%)
• Profit before tax and group recharges of £15.3m (2020: £8.3m), an increase of 84%
• Average net margin at 4.1% (2020: 4.1%)
• Customer loans increased 25% to £2bn*** (2020: £1.6bn)
• Customer deposits increased 18% to £2.8bn (2020: £2.4bn)
• Assets under management increased 18% to £1.36bn (2020: £1.15bn) driven by both strong net inflows and investment
• Completed acquisition of commercial truck leasing business, Asset Alliance, generating a bargain purchase of £8.6m
• Continued modernisation of our digital channels including introduction of Apple and Google pay facilities to
complement the upgraded Arbuthnot Card app
Commenting on the results, Sir Henry Angest, chairman and chief executive of Arbuthnot, said: “The Group made good progress in 2021, returning to growth and restoring profitability, notwithstanding the ultra-low interest rate environment prevailing in theperiod.
The Group delivered well against our Future State plan achieving significant growth and continuing to diversify through the development of specialist finance businesses, with the successful acquisition and integration of Asset Alliance, a significant strategic step.
Our lending businesses performed well with lending balances growing 25% and reaching two billion pounds for the first time in the Bank’s history. The return to profitability has allowed us to reinstate our normal practice of paying interim and final dividends, and with the special dividend paid earlier in the year this indicates the Board’s confidence in the Group’s future prospects.”
Note: * The prior year results included £1m of transaction costs related to acquisition of Asset Alliance. Excluding these the business broke even.
** On 18 February 2021 the Board declared a special dividend of 21p in lieu of the final dividend for 2019 that had been withdrawn after guidance from the Group’s Regulators.
*** This balance includes both customer loans and assets available for lease.
The Directors of the Company accept responsibility for the contents of this announcement