Last checked at 21 Aug 2009 16:51
PURCHASE OF CONSUMER FINANCE ASSETS
Arbuthnot Banking Group plc ("Arbuthnot Banking Group") today announces that its retail banking subsidiary Secure Trust Bank plc ("Secure Trust"), has reached agreement with Citifinancial Europe plc, a subsidiary of Citigroup to purchase a portfolio of personal instalment loans (the "Loan Portfolio") for a consideration of £21.1 million. The consideration represents a discount to the gross amount receivable under the Loan Portfolio. None of the loans were in arrears as at the effective date of transfer.
The consideration for the transaction will be satisfied in cash on completion. The Loan Portfolio is expected to be immediately accretive to earnings.
During the twelve month period to 31st December 2008 the Loan Portfolio earned an average interest margin (before funding, administration and other costs) of 18.5 per cent. The Loan Portfolio will be serviced using Secure Trust's existing platform.
Enquiries:
| Arbuthnot Banking Group PLC | Tel. No: 020 7012 2400 | |
| Henry Angest | Chairman and Chief Executive | |
| Andrew Salmon | Chief Operating Officer | |
| James Cobb | Group Finance Director | |
| Hawkpoint Partners Ltd | Tel No: 020 7665 4500 | |
| Lawrence Guthrie | ||
| Sunil Duggal | ||
| Numis Securities Limited | Tel No: 020 7260 1000 | |
| Christopher Wilkinson | ||
| Mark Lander | ||
| Maitland | Tel. No: 020 7379 5151 | |
| Emma Burdett | ||
| Richard Farnsworth | ||