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(Alliance News) - Arbuthnot Banking Group PLC on Thursday said its profit was slightly higher in 2019, benefiting from increased customer loans and deposits.
The firm, which provides private banking services via its principal unit Arbuthnot Latham & Co Ltd, reported GBP7.0 million pretax profit on continuing operations for 2019, having posted a GBP6.8 million profit the year before. This represents a 2.9% increase from 2018.
This resulted largely from interest income, which rose 18% to GBP76.9 million from GBP65.3 million and a smaller 6.9% rise to fee and commission income to GBP13.9 million from GBP13.0 million.
The company swung to total comprehensive income of GBP16.8 million from a GBP34.0 million loss the year before, after incurring a GBP25.7 million net loss on the derecognition of associate Secure Trust Bank in 2018, recorded in discontinued operations.
Arbuthnot Latham, the company's core unit, recorded 11% growth in pretax profit before group recharges of GBP16.2 million. Customer loans increased by 31% to GBP1.60 billion and deposits grew by 22% to GBP2.09 billion.
Arbuthnot's full year dividend per share was 5.7% higher at 37 pence versus 35p per share in 2018.
Its total capital ratio at the end of 2019 was 17.3%, compared to 17.2% year-on-year.
Chair & Chief Executive Henry Anges said: "Since the financial year end the global economy has been significantly impacted by the spread of the coronavirus and the drastic measures taken by governments to contain the outbreak. Every business will experience the effects of this, including Arbuthnot. We have taken immediate steps to protect our staff and all are now homeworking wherever possible, while our recent investment in technology has enabled us to remain in close contact with clients.
"In the short term, the cut in base rates will have a material impact on our profitability and while the removal of the countercyclical capital buffer will benefit us, it is difficult to provide any detailed guidance for the year. Longer term however Arbuthnot is a very well capitalised bank, with excellent management and staff and a conservative loan book. We are well positioned to withstand these headwinds and potentially take advantage of opportunities as we eventually emerge from this."
Shares in Arbuthnot were down 1.5% at 736.00 pence in London on Thursday afternoon.
By Anna Farley; annafarley@alliancenews.com
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