REG - Arbuthnot Banking - Half-year Report <Origin Href="QuoteRef">ARBB.L</Origin> - Part 2
18/07/2017 07:06
- Part 2: For the preceding part double click ID:nRSR3046La
- (507)
Profit after tax - 2,027
Profit on sale of business - 116,754
Total profit from discontinued operation - 118,781
Profit attributable to:
Equity holders of the Company - 61,667
Non-controlling interests - 57,114
Profit after tax - 118,781
Earnings per share for profit attributable to the equity holders of the Company from discontinued operations during the year
(expressed in pence per share):
- basic 5 - 418.4
- diluted 5 - 417.0
6. Discontinued operations - continued
The following unaudited assets were sold as part of the sale of ELL:
Recognised values on sale
2016
£000
Loans and advances to banks 457
Loans and advances to customers 116,744
Property, plant and equipment 452
Intangible assets 1,258
Deferred tax assets 371
Prepayments and accrued income 451
Other assets 11
Total assets 119,744
Intercompany funding 108,088
Current tax liability 3,212
Other liabilities 4,748
Total liabilities 116,048
Net identifiable assets 3,696
Consideration 123,206
Costs (2,756)
Profit on sale of ELL 116,754
The intercompany funding was repaid by NSF at the time of completion.
6. Discontinued operations - continued
Cash flow from discontinued operations - ELL Six months ended 30 June From 1 January to 13 April
2017 2016
£000 £000
Cash flows from operating activities
Interest received - 11,137
Fees and commissions received - 23
Cash payments to employees and suppliers - (8,626)
Taxation paid - (507)
Cash flows from operating profits before changes in operating assets and liabilities - 2,027
Changes in operating assets and liabilities:
- net increase in loans and advances to customers - (3,618)
- net increase in other assets - (249)
- net increase in other liabilities - 2,621
Net cash inflow from operating activities - 781
Cash flows from investing activities
Purchase of property, plant and equipment - (9)
Net cash outflow from investing activities - (9)
Cash flows from financing activities
Increase in borrowings
Dividends paid
Net increase in cash and cash equivalents - 772
Cash and cash equivalents at 1 January - 1,661
Cash and cash equivalents at 13 April - 2,433
6. Discontinued operations - continued
On 15 June 2016 Arbuthnot Banking Group ('ABG') sold 6 million shares in
Secure Trust Bank PLC ('STB'), which reduced its shareholding in STB from
51.92% to 18.93%. From this date the Group accounted for its remaining
shareholding in STB as an associate. After the sale of the 6 million shares,
the Group retained Board representation and as such is seen to have
significant influence over STB. The profit and cash flow from discontinued
operations relating to ELL have been shown in the tables above. The ELL
entities were subsidiaries of STB and therefore formed part of the STB number
reported in the operating segments of ABG. The tables below therefore reflect
the profit and cash flow from the STB group excluding ELL. The combined
impact can be seen in the operating segments (see note 1 - Retail banking).
Six months ended 30 June From 1 January to 15 June
2017 2016
Note £000 £000
Interest income - 57,498
Interest expense - (12,107)
Net interest income - 45,391
Fee and commission income - 7,981
Fee and commission expense - (779)
Net fee and commission income - 7,202
Operating income - 52,593
Net impairment loss on financial assets - (12,172)
Operating expenses - (29,074)
Profit before tax - 11,347
Tax expense - (2,198)
Profit after tax - 9,149
Profit on sale of shares - 100,180
Total profit from discontinued operation - 109,329
Profit attributable to:
Equity holders of the Company - 105,017
Non-controlling interests - 4,312
Profit after tax - 109,329
Earnings per share for profit attributable to the equity holders of the Company from discontinued operations during the year
(expressed in pence per share):
- basic 5 - 712.5
- diluted 5 - 710.1
6. Discontinued operations - continued
The following unaudited assets were deconsolidated as part of the sale of 6 million shares in STB:
Recognised values on sale
2016
£000
Cash and balances at central banks 176,647
Loans and advances to banks 27,618
Loans and advances to customers 1,117,700
Other assets 5,805
Financial investments 15,030
Deferred tax asset 606
Intangible assets 7,017
Property, plant and equipment 8,606
Total assets 1,359,029
Deposits from banks 25,000
Deposits from customers 1,046,009
Current tax liability 293
Other liabilities 29,748
Total liabilities 1,101,050
Net identifiable assets 257,979
Profit on sale of shares were calculated as follows:
2016
£000
Consideration received 150,000
Less costs (2,001)
Less net identifiable assets (257,979)
Add back non-controlling interest 124,046
Add back fair value of remaining investment in STB 86,114
Profit on sale of STB 100,180
6. Discontinued operations - continued
Cash flow from discontinued operations - STB excluding ELL Six months ended 30 June From 1 January to 15 June
2017 2016
£000 £000
Cash flows from operating activities
Interest received - 68,635
Interest paid - (12,107)
Fees and commissions received - 7,226
Cash payments to employees and suppliers - (51,552)
Taxation paid - (6,034)
Cash flows from operating profits before changes in operating assets and liabilities - 6,168
Changes in operating assets and liabilities:
- net increase in loans and advances to customers - (165,976)
- net decrease in other assets - 117,395
- net decrease in deposits from banks - (10,000)
- net increase in amounts due to customers - 12,936
- net decrease in other liabilities - (5,031)
Net cash outflow from operating activities - (44,508)
Cash flows from investing activities
Purchase of computer software - (1,754)
Purchase of property, plant and equipment - (531)
Disposal of property, plant and equipment - 2,179
Proceeds from disposal of businesses - 106,912
Proceeds from sale of property, plant and equipment - 456
Net cash inflow from investing activities - 107,262
Cash flows from financing activities
Increase in borrowings
Dividends paid - (10,005)
Net cash used in financing activities - (10,005)
Net increase in cash and cash equivalents - 52,749
Cash and cash equivalents at 1 January - 141,595
Cash and cash equivalents at 15 June - 194,344
7. Basis of reporting
The interim financial statements have been prepared on the basis of accounting
policies set out in the Group's 2016 statutory accounts as amended by
standards and interpretations effective during 2017 and in accordance with IAS
34 "Interim Financial Reporting" (except for comparatives in the statement of
financial position). The directors do not consider the fair value of the
assets and liabilities presented in these financial statements to be
materially different from their carrying value.
The statements were approved by the Board of Directors on 17 July 2017 and are
unaudited. The interim financial statements will be posted to shareholders and
copies may be obtained from The Company Secretary, Arbuthnot Banking Group
PLC, Arbuthnot House, 7 Wilson Street, London EC2M 2SN.
This information is provided by RNS
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