Arbuthnot Banking Group Plc Regulatory News (ARBB.PL)

Hardman & Co Research on Arbuthnot Banking Group (ARBB)

1H’23: steering through the interest rate wave

ABG’s income has been driven by the way in which it has managed its franchise – specifically, building a relationship bank with less price-sensitive deposits. Spreads have widened in a rising rate environment, despite ABG offering competitive rates to its relationship customers, and group operating income increased by 51% on 1H’22. Margins may have peaked now. We previously expressed the view that, if the base rate were sustained at 4%, or higher, there could be marketwide credit issues. The very early signs of this are now evident. However, ABG’s conservative approach, with its low LTVs, good-quality security (primarily residential real estate) and stress testing curtailing lending, means it is positioned well.

Please click on the link below for the full report:

https://hardmanandco.com/research/corporate-research/1h23-steering-through-the-interest-rate-wave/

If you are interested in meeting the company, you can register your interest by clicking on the above link

Hardman & Co Research can still be accessed for free after MiFID II. Please click here to read the statement.

About Hardman & Co: Hardman Research Ltd, trading as Hardman & Co, is an appointed representative of Capital Markets Strategy Ltd and is authorised and regulated by the Financial Conduct Authority; our FCA registration number is 600843. Hardman Research Ltd is registered at Companies House with number 8256259. Attention is drawn to the important disclaimers at the end of the report.