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(Alliance News) - Arbuthnot Banking Group PLC on Tuesday reported a sharp drop in interim profit but saw its loan book rise.
In the six months to June 30, the private bank recorded pretax profit of GBP201,000, sharply lower than the GBP2.9 million seen the year before.
Net interest income, however, rose to GBP29.7 million from GBP28.8 million. Operating income improved to GBP36.6 million from GBP35.6 million.
The bank's operating expenses rose to GBP35.1 million from GBP33.8 million.
Arbuthnot's customer loan ended the first half at GBP1.62 billion, up from GBP1.50 billion at the end of 2019 and higher from GBP1.28 billion the year before.
Deposits rose to GBP2.21 billion from GBP2.08 billion six months prior and GBP1.83 billion the year before.
The lender's CET1 ratio stood at 13.9% at the end of the first half versus 14.4% at the end of 2019.
Assets under management improved to GBP1.07 billion from GBP1.03 billion the year before.
Chair & Chief Executive Henry Angest said: "I am pleased that the group remained profitable during the first half of 2020 despite the exceptional twin challenges posed by the cut in base rate to historic low levels and the impact of the Covid-19 lockdown on economic activity.
"Since that time the bank has responded positively to remote working and has continued to support all of its clients' needs. The group's strong financial resources leave it in a good position to take advantage of the new opportunities that are likely to arise as business activity resumes."
The bank decided against its interim payout in an effort to save cash amid the pandemic.
Shares in Arbuthnot Banking were 1.5% higher in London on Tuesday afternoon at 842.50 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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