REG - Arbuthnot Banking - Loan Portfolio Acquisition <Origin Href="QuoteRef">ARBB.L</Origin>

Arbuthnot BankingAnnouncement

19/12/2016 07:00

RNS Number : 1703S
Arbuthnot Banking Group PLC
19 December 2016
FOR IMMEDIATE RELEASE
19 December 2016
Arbuthnot Banking Group PLC 
Loan Portfolio Acquisition
Arbuthnot Banking Group PLC ("Arbuthnot" or "the Group") today announces that its wholly owned subsidiary Arbuthnot Latham ("AL") has completed the purchase of a private banking loan portfolio, which is mainly secured against residential property.
The loans are being purchased from Duncan Lawrie Ltd ("Duncan Lawrie"). As at 31 October 2016 the portfolio had total customer balances of approximately 44.9m and comprised 83 customer accounts. The average loan to value of the portfolio was 43% and the client yield was 5.21% (for the month of October) before applying any yield adjustment for the negotiated discount, which was 5% to the par value of the loans. This discount should result in a higher effective interest rate as the portfolio repays.
The consideration of 42.7m (which is subject to certain completion adjustments relating to the period up to 31 January 2017) will be satisfied in cash from the Group's resources.
Enquiries:
Arbuthnot Banking Group
Henry Angest, Chairman and Chief Executive
Andrew Salmon, Group Chief Operating Officer
James Cobb, Group Finance Director
Ian Henderson, Group Director and Chief Executive Arbuthnot Latham
0207 012 2400
Stifel Nicolaus Europe Ltd trading as KBW (Nomad and Joint Broker)
Robin Mann
Gareth Hunt
Stewart Wallace
0207 710 7600
Numis Securities Ltd (Joint Broker)
Chris Wilkinson
Andrew Holloway
0207 260 1000
Bell Pottinger (Financial PR)
Ben Woodford
0203 772 2563

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