REG - Arbuthnot Banking - Annual General Meeting 2026 & Trading Update

Arbuthnot BankingAnnouncement

Tue 14:45

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RNS Number : 9583E  Arbuthnot Banking Group PLC  19 May 2026

19 May 2026

Arbuthnot Banking Group PLC

Annual General Meeting 2026

 

Trading Update

 

 

The Board of Arbuthnot Banking Group PLC ("Arbuthnot", "the Company", "the
Bank" or the "Group") announces the following statement regarding the trading
performance of the Group for the four months to 30 April 2026 ahead of the
Annual General Meeting due to be held later today.

 

Highlights

 

 ●    Loan Balances including Leased Assets at 30 April 2026 of £2,322m (30 April
      2025: £2,361m, 31 December 2025: £2,246m), representing growth of 3% since
      the year end.

 ●    Deposits of £4,631m (30 April 2025: £4,257m, 31 December 2025: £4,570m),
      representing a 1% increase since the year end despite the seasonal outflow of
      client tax payments and year on year growth of 9%.

 ●    Funds Under Management and Administration ("FUMA") of £2,804m, (30 April
      2025: £2,250m, 31 December 2025: £2,677m), a 5% increase against 31 December
      2025 and an increase of 25% year on year.

 

Summary

 

The Group made a strong start to the year with good growth in both lending and
FUMA balances. This is despite the headwinds that have persisted in the
economy in 2026.

 

The Group regularly notes that due to the conservative levels of surplus
liquidity, its financial performance can be affected by the base rate which
determines the return the Group can make on these surplus funds. Therefore,
after the base rate reduction in December 2025 and the anticipation of further
cuts in 2026, the Group expected its good trading performance would be offset
by lower revenues earned on the liquidity reserves.

 

Given the issues in the Middle East that have now pushed up energy prices
which seem likely to become embedded in the supply chain, higher inflation
would appear to be inevitable. How the Bank of England policy setters react to
this remains to be seen, but the downside risk appears to have receded for
now.

Group loan balances grew 3% in the first four months of the year to finish the
period at £2,322m with a return to growth across all of the Group's business
segments, whilst maintaining its conservative credit appetite.

Deposits finished the period at £4,631m, a 1% growth in the four months since
the year end and 9% since the same period in the prior year. This was after
the seasonal outflow of clients' tax payments to HMRC in January.  The Wealth
Management business grew 5% in the first four months to 30 April to finish
with FUMA of £2,804m. This was despite volatility in equity markets caused by
the conflict in the Middle East.

Banking

 

Banking's relationship-led approach continued to support the growth and
retention of criteria clients across its Private and Commercial Banking
propositions.

 

Deposits finished the period at £4,631m a 1% increase against the year end.
However, this is after approximately £250m of seasonal outflow of private
banking client payments to HMRC, which was offset by commercial banking
deposit growth.

 

The Banking loan book grew 1% in the first four months of 2026. Although the
business finished 2025 with a strong pipeline, delays in conveyancing and
legal completion timelines across the UK have lengthened materially,
particularly for higher‑value or structurally complex transactions,
resulting in a slower drawdown rate for the business. With a cautious outlook
for the UK economy, along with some headwinds observed for prime London
property, 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 medium term historic low levels.

 

Wealth Management

 

FUMA grew 5% in the period to finish at £2,804m at the end of April,
representing 25% year on year growth. This was despite the conflict in the
Middle East creating volatility in the equity markets as investors weighed up
the potential impact on different regions and sectors.

 

In April the business launched its first fund range. This key milestone
provides an alternative more accessible investment vehicle for those clients
with lower levels of funds, whilst still benefitting from the Investment
Committee's tactical allocation and performance for both new and existing
clients.

 

Arbuthnot Commercial Asset Based Lending ("ACABL")

 

ACABL had pleasing growth in lending balances in the first four months of 2026
increasing its loan book from £219m at the previous year end to £247m at the
end of April, representing growth of 13% for the four months and 14% year on
year.

 

The loan book growth was from a combination of both new clients, two thirds of
which related to event driven transactions as well as additional facilities to
existing relationships, both of which more than offset attrition. The current
pipeline is indicating that the momentum in loan book growth will continue for
the remainder of the first half of 2026.

 

Following previous economic uncertainty, many portfolio clients have built up
cash buffers, which has proven beneficial in shielding them from current
rising energy prices, supply chain disruptions and rising inflation. As a
consequence, new watchlist cases for ACABL have been minimised.

 

Renaissance Asset Finance ("RAF")

 

RAF finished the period with a loan book of £336m up 17% from the end of 2025
and 27% year on year. The majority of growth coming from RAF's core specialism
of financing high value cars for high net worth individuals. The business
also achieved a key milestone in the first four months, exceeding £1bn lent
since its inception in 2014.

 

The Block Discounting business, launched in late 2021, continues to generate
significant growth, reporting an 8% increase over the period.

 

Asset Alliance Group ("AAG")

 

AAG finished the period with Assets Available to Lease of £384m compared to
£383m at the previous year end. Origination for the first four months of 2026
was £34m.  Whilst the coach market has been impacted by sudden fuel rises,
the bus sector remains more resilient.

 

The lending portfolio is now well balanced between commercial vehicles and
buses, providing resilience against external macro-economic forces.  Trading
in used, end of lease commercial vehicles has also shown signs of recovery in
the period, with sales now running at a profit rather than the   losses
experienced in 2025.

 

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                          020 7012 2400

 Sir Henry Angest, Chairman and Chief Executive

 Andrew Salmon, Group Chief Operating Officer

 James Cobb, Group Finance Director

 Grant Thornton UK LLP (Nominated Adviser and     020 7383 5100

 AQSE Exchange Corporate Adviser)

 Colin Aaronson

 Samantha Harrison

 Ciara Donnelly

 Shore Capital (Broker)                           020 7408 4090

 Daniel Bush

 David Coaten

 Tom Knibbs

 H/Advisors (Financial PR)                        020 7379 5151

 Neil Bennett

 Sam Cartwright

 

 

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