REG - Arbuthnot Banking - Mortgage portfolio acquisition <Origin Href="QuoteRef">ARBB.L</Origin>

Arbuthnot BankingAnnouncement

18/12/2014 15:25

RNS Number : 2201A
Arbuthnot Banking Group PLC
18 December 2014
PRESS RELEASE
For Immediate Release
18 December 2014
ARBUTHNOT BANKING GROUP PLC
Mortgage Portfolio Acquisition
Arbuthnot Banking Group PLC ("Arbuthnot" or the "Group") today announces that its subsidiary Arbuthnot Latham ("AL" or "the Bank") has completed the purchase of a residential mortgage portfolio.
The mortgages are being acquired from the administrators of the Dunfermline Building Society ("DBS"). The portfolio has been in run off since 2009 and was previously acquired by DBS from other originators principally GMAC with the balances being geographically distributed around the UK.
Based on balances at 31 October 2014, the portfolio consists of loans totalling 117.6 MN of which 58 per cent are residential buy to let and the remaining are owner occupied. The average loan to value is 72 per cent with a current expected yield of approximately 4 per cent.
The consideration of 106.3 MN has been satisfied by cash from the Group's resources.
Having regard to the recent developments in the Sterling Monetary Framework, including the Funding for Lending Scheme ("FLS"), this transaction will further diversify AL's asset base which may be offered as collateral. This should enable the Bank to use more sophisticated and stable mechanisms, with which to manage its liquidity.
Enquiries:
Arbuthnot Banking Group
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
Zo Pocock
020 3772 2500

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