REG - Arbuthnot Banking - 2015 Third Quarter Trading Update <Origin Href="QuoteRef">ARBB.L</Origin>

Arbuthnot BankingAnnouncement

15/10/2015 07:00

RNS Number : 3046C
Arbuthnot Banking Group PLC
15 October 2015
 
PRESS RELEASE
For Immediate Release
15 October 2015
ARBUTHNOT BANKING GROUP PLC
2015 Third Quarter Trading Update
Arbuthnot Banking Group PLC ("Arbuthnot" or the "Group") today issues an update on trading for the three months to 30 September 2015.
The Group has continued to make good progress in the quarter and has reached another significant milestone in its development as total assets have exceeded 2 billion for the first time.
Retail Banking
Secure Trust Bank (STB) traded strongly during the quarter. Demand for its consumer lending products remained healthy, especially in Retail and Motor Finance, where lending volumes are materially higher than the previous year.
The SME lending divisions continue to make positive progress. As a result, the overall lending balances of the Bank have now exceeded 900 million.
STB continues to see favourable conditions in the retail deposit market and remains able broadly to match its lending growth by attracting deposits into two, three, four, five and seven year fixed rate products.
The Bank has continued its investment for the future and is in the process of developing a deposit platform that will enable STB to offer Cash ISA products. Also the Bank recently announced the appointment of Ian Henderson who will be responsible for strategy, personal lending and mortgages. Ian was recently the CEO of Kensington Mortgages and prior to that the CEO of Shawbrook Bank.
Private Banking
Arbuthnot Latham (AL) has seen a continued increase in the number of new client introductions and is now taking on in excess of 50 new clients per month.
As noted in the 2015 interim results, AL has seen an increase in market activity following the decisive outcome of the General Election. As a result a healthy pipeline of approved lending applications has been generated. However, the improvement in the property market has resulted in the repayment of a number of loans, as projects have been completed. This has resulted in a temporary slowing of the growth in customer lending balances. Given the robust nature of the pipeline, we anticipate that this will recover and the year-end balance will be in line with market expectations.
Following the Bank's stated intention to develop its commercial banking capabilities, AL was pleased to announce recently the arrival of Stephen Fletcher to lead this business. Stephen was previously a Managing Director at Coutts with over 25 years of experience in these markets.
Overall the Group remains confident that it can continue to make positive progress and seize the opportunities that exist for both its banks. Accordingly, we expect the Group's results to be in line with market expectations for 2015. However, we continue to monitor the increasingly uncertain economic environment and remain vigilant as to the impact that the current geopolitical events may have on our plans.
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.
-ENDS-
Enquiries:
Arbuthnot Banking Group
Sir Henry Angest, Chairman and Chief Executive
Andrew Salmon, Group Chief Operating Officer
James Cobb, Group Finance Director
David Marshall, Director of Communications
020 7012 2400
Canaccord Genuity Ltd (Nominated Advisor) 
Sunil Duggal
020 7665 4500
Numis Securities Ltd (Broker)  
Chris Wilkinson
Mark Lander
020 7260 1000
Bell Pottinger (Financial PR) 
Ben Woodford
Zoe Pocock
020 3772 2563

This information is provided by RNS
The company news service from the London Stock Exchange
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