Arbuthnot Banking Group PLC – Third quarter 2026 trading update
The Board of Arbuthnot Banking Group PLC (“Arbuthnot”, the “Company”, the “Bank” or the “Group”) provides the following update regarding the trading performance of the Group for the three months to 30 September 2026.
Highlights
- Customer loans and leased assets of £2.5bn at the period end (30 September 2025: £2.2bn); 12% growth over the previous 12 months
- Funds under Management and Administration of £3.1bn at the period end (30 September 2025: £2.5bn); growth of 21% over the previous 12 months
- Customer deposit balances of £4.9bn at the period end (30 September 2025: £4.4bn); 10% growth over the previous 12 months
- Broad based growth across all business units, with specialist subsidiaries growing 26% over the last 12 months
- As a result of the loan book growth, the stable rate environment and the continued momentum in the Wealth Management business over the first nine months of the year, the Board now expects that 2026 full year profit before tax will be ahead of prior expectations
Group summary
The Group has continued to make good progress in the third quarter despite the challenging economic environment.
The specialist lending divisions, led performance, delivering 26% growth over the past 12 months. Both Arbuthnot Commercial Asset Based Lending and Renaissance Asset Finance have delivered growth in excess of 40% over the last 12 months. Additionally, the Group’s Wealth Management business continues to see strong growth, following the launch of its fund proposition earlier in the year, driven by both strong new inflows as well as investment portfolio performance with net growth of 15% year-to-date and 21% over the previous twelve month period.
At its September meeting, the Bank of England held rates at 3.75%. At the start of 2026 the expectation was rates would fall. However, the ongoing war in Iran has led to sustained high oil prices and inflation, with the US Fed increasing interest rates by 0.25% for the first time in 3 years. Any UK base rate rises would provide a further tailwind to the Group’s performance.
Taking into account the loan book growth in the first nine months of the year and the continued positive momentum in the Wealth Management business, together with base rate stability across 2026 to date, the Board now expects that 2026 full year profit before tax will be ahead of prior expectations.
Banking
During the third quarter deposits remained broadly flat to finish at £4.9bn equating to 2% increase in the quarter, and 10% over the last 12 months.
The deposit market remains competitive, particularly for rate-sensitive liquidity, and we have made a conscious decision not to compete where the rates do not make economic sense for the business. Our service-led deposit proposition continues to grow, namely in Commercial Banking, which has increased its deposit book by over £200m in 2026 to date. Private Banking deposits have recovered from the tax outflows seen in January, which amounted to approximately £250m. We have seen a continuation of the strong demand from private clients for the Group’s Wealth Management services, where we have seen deposits being transferred into the Group’s wealth management products over the last 12 months.
The Banking loan book has grown strongly both since year end and over the past 12 months. The Bank continues to hold to its principles of maintaining high quality credit lending to borrowers with strong asset bases, resulting in watchlist client numbers now being at low levels.
Wealth Management
Funds Under Management & Administration (FUMA) continued to grow in the third quarter of 2026 to finish September at £3.09bn, up 15% from the start of the year and representing growth of 21% year on year (30 September 2025: £2.54bn). Gross inflows of £458m, equivalent to 23% growth on an annualised basis demonstrate the continued strong organic growth of the Wealth Management business.
The business turned to a net profit for the quarter. Fees and commission from advising clients through the Wealth Planning business contributed to the improved financial performance and contributed to two-thirds of the inflows this year.
Since its launch in April, our fund range has attracted more than 40% of all new investment clients, representing 6% of total gross inflows in the six-month period. The funds provide access to our core investment decisions via a cost-effective solution and ensure greater operational efficiency for the investment management business.
Arbuthnot Commercial Asset Based Lending (“ACABL”)
ACABL continued to grow in the third quarter, ending the period with a loan book of £305.6m, equating to a 39% increase year to date and an annualised growth rate of 46%. This was reassuring after a small decline in lending reported for the year ending 31 December 2025, with 82% of growth generated through new clients, and an increase in Private Equity sponsored deal structures.
A combination of working closely with clients’ management teams as well as clients also managing higher cash reserves to absorb economic shocks continues to mitigate portfolio credit losses.
Renaissance Asset Finance (“RAF”)
RAF finished the quarter with a loan book of £409.5m, equating to annual growth of 45% over the last 12 months and 43% since December 2025.
The majority of growth was from RAF’s core specialism of financing high value cars for high-net-worth individuals, which has been a particularly strong sector in 2026. The loan book continues to show strong performance with no significant deterioration in credit quality.
Growth is expected to slow into Q4 given the interest rate outlook, with financing costs expected to increase. The Block Discounting business, launched in late 2021, continues to generate significant growth, reporting a 25% increase in the loan book since December 2025.
Asset Alliance Group (“AAG”)
AAG performance continued to improve and it finished the period with Assets Available to Lease of £384.2m compared to £382.8m at the previous year end and £380.0m at the end of Q3 in the prior year. Origination for the first nine months of 2026 was £86.5m.
The commercial vehicle division continues to show signs of recovery with new vehicle registrations improving and driving increased lending. The coach market however remains subdued primarily due to reduced demand in the tourism industry as a consequence of the Middle East conflict. AAG’s fully diversified portfolio, split across commercial vehicle, bus and coach sectors is now better placed to provide resilience against varying individual market sectors.