Arbuthnot Regulatory News (ARBB)

11 Jan 2007 07:01

Arbuthnot Banking Group PLC11 January 2007 ARBUTHNOT BANKING GROUP PLC PRE CLOSE TRADING STATEMENT Arbuthnot Banking Group PLC ("the Group") is today issuing a trading updateahead of the close period relating to the year ended 31 December 2006. Investment Banking Following on from the profits reported at the time of publication of the Group'sinterim results in September 2006, the Group's investment banking subsidiary,Arbuthnot Securities, continued to trade in line with the improved first halfperformance despite market conditions softening over the summer and the AIMmarket in particular entering a more restrained phase. Profitability for theyear is anticipated to be well ahead of last year. Private Banking The investment in the Private Banking franchise continued in the second half of2006 in building the relationship management expertise and providing a base forfuture growth. Overall, divisional profitability for the year ending December2006 is anticipated to be in line with the previous year. Retail Banking Trading has continued to soften in the second half of 2006 due to a decline incustomer numbers of the "One Bill" account and a reduction in the amount of newunsecured lending as a result of the changing credit environment. Since joining as Chief Executive in September 2006, Gary Jennison has recruiteda new team consisting of a Chief Operating Officer, Sales and Marketing Directorand Finance Director. They have embarked on a detailed review of the business,looking at all aspects of performance. In 2004, Secure Trust Bank entered into an arrangement to provide motorinsurance broking services to customers of Yes Car Credit that was terminated inthe second half of 2005. It has now become apparent that debts totalling £2.9million relating to this business may not be recoverable and accordingly fullprovision will be made in the 2006 results. Overall impact on Group Results As announced on 12 December 2006, the Group entered into a sale and leaseback onits London Headquarters, realising a pre tax profit of £11.0 million. The Groupadditionally announced exceptional items of £0.9 million restructuring costs inthe second half of 2006. The Board expects profit before tax and exceptional items for the year ended 31December 2006 to be approximately £8 million. After allowing for the exceptionalitems referred to above, the Board anticipates a pre tax profit of approximately£14.5 million for the year ended 31 December 2006. Press enquiries: Arbuthnot Banking Group PLC Tel: 020 7012 2400Henry Angest, Chairman and Chief ExecutiveAndrew Salmon, Chief Operating OfficerPaul Sheriff, Group Finance Director Maitland Tel: 020 7379 5151Emma BurdettLydia Pretzlik This information is provided by RNS The company news service from the London Stock Exchange