Last checked at 11 Oct 2013 07:00
FOR IMMEDIATE RELEASE
11 October 2013
Arbuthnot Banking Group PLC
Third Quarter Trading Update
Arbuthnot Banking Group PLC ("Arbuthnot" or the "Group") today issues an update of trading for the three months to 30 September 2013.
The Group has traded well in the third quarter with both banks making good progress. The recently announced sale and leaseback is progressing according to plan and once completed further details on the special dividend of 18 pence per ordinary share will be provided.
Retail Banking
Secure Trust Bank (STB) experienced strong demand for both its lending and deposit products. The bank continues to enjoy the favourable funding environment and has actively pursued raising five year fixed rate deposits to position itself for any future increases in interest rates.
STB has also begun to develop its plans to enter the SME lending market. It has recruited two well-regarded and experienced professionals to help build an invoice financing business, which should launch in the first half of 2014.
Private Banking
Arbuthnot Latham (AL) continues to be offered attractive loan propositions, as the larger banks maintain their reduced appetite toward specialised lending. At the same time the bank has maintained its policy of funding its lending from customer deposits.
As indicated in the half year announcement the bank continued to see a fall in its funding rates which is reversing the margin compression that it experienced in 2012.
The bank officially opened its office in Dubai on 28 July and has already seen a good deal of interest from the expatriate community, despite the fact that activity levels are much reduced in the summer months.
Note: Secure Trust Bank also today issued an update on trading for the same three month period. The two announcements should be read in conjunction with each other.
Enquiries:
Arbuthnot Banking Group 0207 012 2400
Henry Angest, Chairman and Chief Executive
Andrew Salmon, Group Chief Operating Officer
James Cobb, Group Finance Director
David Marshall, Director of Communications
Canaccord Genuity Ltd (Nominated Advisor) 0207 665 4500
Lawrence Guthrie
Sunil Duggal
Numis Securities Ltd (Broker) 0207 260 1000
Chris Wilkinson
Mark Lander
Bell Pottinger (Financial PR) 0207 861 3917
Ben Woodford
Zoe Pocock