Arbuthnot Banking - Third Quarter 2026 Trading Update

Arbuthnot Banking

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RNS Number : 9546Z
  
Arbuthnot Banking Group PLC
  
22 October 2026
  
 

		

			

				 
			
			

				22 October 2026
			
			

				Arbuthnot Banking Group PLC 
			
			

				Third Quarter 2026 Trading Update
			
			

				 
			
			

				The Board of Arbuthnot Banking Group PLC ("Arbuthnot", the "Company", the "Bank" or the "Group") provides the following update regarding the trading performance of the Group for the three months to 30 September 2026.
			
			

				Highlights
			
			

				

					Customer loans and leased assets of £2.5bn at the period end (30 September 2025: £2.2bn); 12% growth over the previous 12 months
				
				

					Funds under Management and Administration of £3.1bn at the period end (30 September 2025: £2.5bn); growth of 21% over the previous 12 months
				
				

					Customer deposit balances of £4.9bn at the period end (30 September 2025: £4.4bn); 10% growth over the previous 12 months
				
				

					Broad based growth across all business units, with specialist subsidiaries growing 26% over the last 12 months
				
				

					As a result of the loan book growth, the stable rate environment and the continued momentum in the Wealth Management business over the first nine months of the year, the Board now expects that 2026 full year profit before tax will be ahead of prior expectations
				
			
			

				 
			
			

				Group summary
			
			

				The Group has continued to make good progress in the third quarter despite the challenging economic environment. 
			
			

				 
			
			

				The specialist lending divisions, led performance, delivering 26% growth over the past 12 months. Both Arbuthnot Commercial Asset Based Lending and Renaissance Asset Finance have delivered growth in excess of 40% over the last 12 months. Additionally, the Group’s Wealth Management business continues to see strong growth, following the launch of its fund proposition earlier in the year, driven by both strong new inflows as well as investment portfolio performance with net growth of 15% year-to-date and 21% over the previous twelve month period.
			
			

				 
			
			

				At its September meeting, the Bank of England held rates at 3.75%. At the start of 2026 the expectation was rates would fall. However, the ongoing war in Iran has led to sustained high oil prices and inflation, with the US Fed increasing interest rates by 0.25% for the first time in 3 years. Any UK base rate rises would provide a further tailwind to the Group’s performance.
			
			

				 
			
			

				Taking into account the loan book growth in the first nine months of the year and the continued positive momentum in the Wealth Management business, together with base rate stability across 2026 to date, the Board now expects that 2026 full year profit before tax will be ahead of prior expectations.
			
			

				 
			
			

				Banking
			
			

				During the third quarter deposits remained broadly flat to finish at £4.9bn equating to 2% increase in the quarter, and 10% over the last 12 months. 
			
			

				The deposit market remains competitive, particularly for rate-sensitive liquidity, and we have made a conscious decision not to compete where the rates do not make economic sense for the business.  Our service-led deposit proposition continues to grow, namely in Commercial Banking, which has increased its deposit book by over £200m in 2026 to date. Private Banking deposits have recovered from the tax outflows seen in January, which amounted to approximately £250m. We have seen a continuation of the strong demand from private clients for the Group’s Wealth Management services, where we have seen deposits being transferred into the Group’s wealth management products over the last 12 months.
			
			

				The Banking loan book has grown strongly both since year end and over the past 12 months.  The Bank continues to hold to its principles of maintaining high quality credit lending to borrowers with strong asset bases, resulting in watchlist client numbers now being at low levels.
			
			

				 
			
			

				Wealth Management
			
			

				Funds Under Management & Administration (FUMA) continued to grow in the third quarter of 2026 to finish September at £3.09bn, up 15% from the start of the year and representing growth of 21% year on year (30 September 2025: £2.54bn). Gross inflows of £458m, equivalent to 23% growth on an annualised basis demonstrate the continued strong organic growth of the Wealth Management business. 
			
			

				 
			
			

				The business turned to a net profit for the quarter. Fees and commission from advising clients through the Wealth Planning business contributed to the improved financial performance and contributed to two-thirds of the inflows this year.
			
			

				 
			
			

				Since its launch in April, our fund range has attracted more than 40% of all new investment clients, representing 6% of total gross inflows in the six-month period. The funds provide access to our core investment decisions via a cost-effective solution and ensure greater operational efficiency for the investment management business.
			
			

				 
			
			

				Arbuthnot Commercial Asset Based Lending (“ACABL”)
			
			

				ACABL continued to grow in the third quarter, ending the period with a loan book of £305.6m, equating to a 39% increase year to date and an annualised growth rate of 46%. This was reassuring after a small decline in lending reported for the year ending 31 December 2025, with 82% of growth generated through new clients, and an increase in Private Equity sponsored deal structures.
			
			

				 
			
			

				A combination of working closely with clients’ management teams as well as clients also managing higher cash reserves to absorb economic shocks continues to mitigate portfolio credit losses.
			
			

				 
			
			

				Renaissance Asset Finance (“RAF”)
			
			

				RAF finished the quarter with a loan book of £409.5m, equating to annual growth of 45% over the last 12 months and 43% since December 2025.
			
			

				 
			
			

				The majority of growth was from RAF's core specialism of financing high value cars for high-net-worth individuals, which has been a particularly strong sector in 2026.  The loan book continues to show strong performance with no significant deterioration in credit quality.
			
			

				 
			
			

				Growth is expected to slow into Q4 given the interest rate outlook, with financing costs expected to increase.  The Block Discounting business, launched in late 2021, continues to generate significant growth, reporting a 25% increase in the loan book since December 2025.
			
			

				 
			
			

				Asset Alliance Group (“AAG”)
			
			

				AAG performance continued to improve and it finished the period with Assets Available to Lease of £384.2m compared to £382.8m at the previous year end and £380.0m at the end of Q3 in the prior year. Origination for the first nine months of 2026 was £86.5m.
			
			

				 
			
			

				The commercial vehicle division continues to show signs of recovery with new vehicle registrations improving and driving increased lending. The coach market however remains subdued primarily due to reduced demand in the tourism industry as a consequence of the Middle East conflict. AAG’s fully diversified portfolio, split across commercial vehicle, bus and coach sectors is now better placed to provide resilience against varying individual market sectors.  
			
			

				 
			
			

				 
			
			

				 
			
			

				The Directors of the Company accept responsibility for the contents of this announcement.
			
			

				 
			
			

				The information contained within this announcement is deemed to constitute inside information as stipulated under the retained EU law version of the Market Abuse Regulation (EU) No. 596/2014 (the "UK MAR") which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. The information is disclosed in accordance with the Company's obligations under Article 17 of the UK MAR. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
			
			

				 
			
			

				

					

						

							Enquiries:
						
						

							 
						
					
					

						

							 
						
					
				
				

					

						

							Arbuthnot Banking Group
						
						

							Sir Henry Angest, Chairman and Chief Executive
						
						

							Andrew Salmon, Group Chief Operating Officer
						
						

							James Cobb, Group Finance Director
						
						

							 
						
					
					

						

							020 7012 2400
						
					
				
				

					

						

							Grant Thornton UK Advisory & Tax LLP (Nominated Adviser and
						
						

							AQSE Exchange Corporate Adviser)
						
						

							Colin Aaronson
						
						

							Samantha Harrison
						
						

							Ciara Donnelly
						
						

							 
						
					
					

						

							020 7383 5100
						
					
				
				

					

						

							Shore Capital (Broker) 
						
						

							Daniel Bush
						
						

							David Coaten
						
						

							Tom Knibbs
						
						

							 
						
					
					

						

							020 7408 4090
						
					
				
				

					

						

							H/Advisors (Financial PR) 
						
						

							Neil Bennett
						
						

							Sam Cartwright
						
						

							 
						
					
					

						

							020 7379 5151
						
					
				
			
			

				 
			
			

				 
			
		
	
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