Arbuthnot Banking Group PLC – Unaudited results
Arbuthnot Banking Group PLC is pleased to announce a half yearly profit before tax of £3.0m compared to £0.2m in the prior year. Arbuthnot Banking Group PLC is the holding company for Arbuthnot Latham & Co., Limited.
Financial Highlights
- Profit before tax of £3.0m (30 June 2020: £0.2m)
- Net bargain purchase from the acquisition of Asset Alliance Group Holdings Ltd (“Asset Alliance”) of £8.7m*
- Special dividend paid in March of 21p per share
- Second interim dividend declared of 16p per share
- Capital surplus of £52.8m (31 December 2020: £84.2m)
- CET1 capital ratio of 12.5% (31 December 2020: 15.4%) and total capital ratio of 15.2% (31 December 2020: 18.7%)
- Liquidity surplus of £526m in excess of the minimum regulatory requirement
- Earnings per share 27.2p (30 June 2020: 0.9p)
- Net assets per share of £12.92 (30 June 2020: £12.48; 31 December 2020: £12.70)
Operational Highlights
- Customer loans of £1,726m (30 June 2020: £1,565m; 31 December 2020: £1,536m)** increased by 12% in the first half of the year
- Completed the acquisition of Asset Alliance with integration progressing well, adding £132.3m of leased assets to the balance sheet
- Customer deposits of £2,643m (30 June 2020: £2,207m; 31 December 2020: £2,365m) increased by 12% in the first half of the year
- Assets under management £1,223m (30 June 2020: £1,074m; 31 December 2020: £1,147m) increased by 7% in the first half of the year
- Accredited in March 2021 to provide Government supported Recovery Loans “RLS”
The net bargain purchase is recorded in the Income Statement and is the difference between the £10m purchase price paid for Asset Alliance and the adjusted fair value of the assets and liabilities of the business, which totalled £18.7m. This may be subject to further review and revision in the remaining months of the year.
Comparative results adjusted for the sale of Tay residential mortgage portfolio that was sold in February 2021
Commenting on the results, Sir Henry Angest, chairman and chief executive of Arbuthnot, said: “During the first half of 2021 the Group has returned to growth across its businesses and restored profitability despite the ongoing low interest rate environment. The acquisition of Asset Alliance is a significant step in our strategy to diversify further through the development of specialist commercial finance businesses. The declaration of an interim dividend at the same level as in 2019 is an indication of our confidence for the future prospects of the Group.”
