UK's Arbuthnot Banking annual profit falls as revenue declines

Arbuthnot Banking

26/03/2026 07:10

Overview

UK banking and wealth management group's 2025 revenue and profit before tax declined yr/yr

Customer deposits rose 11% yr/yr, while lending balances fell 6% amid tight credit discipline

Company increased final dividend, but total dividend for 2025 was lower due to no special dividend

Outlook

Company expects to launch unitised funds in Wealth Management division in Q2 2026

Company anticipates Wealth Management division to reach profitable run rate by end of 2026

Arbuthnot says market conditions for commercial vehicle leasing have normalized in early 2026

Result Drivers

LOWER INTEREST INCOME - Decline in profit before tax and operating income was mainly due to lower interest income from surplus liquidity as Bank of England base rate fell

TIGHTER LENDING & CAPITAL PRESERVATION - Lending balances fell as group maintained tight credit discipline and avoided lending at suboptimal rates, preserving capital ahead of new regulations

STRONG DEPOSIT AND FUMA GROWTH - Customer deposits and funds under management grew strongly, supporting liquidity and fee income

Company press release: ID:nRSZ1713Ya

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
GBP 118.57 mln
FY Net Income
GBP 17.81 mln
FY Net Interest Income
GBP 118.13 mln
FY Net Fee Income
GBP 30.25 mln
FY Pretax Profit
GBP 24.18 mln


Analyst Coverage

Wall Street's median 12-month price target for Arbuthnot Banking Group PLC is GBp1,500.00, about 72.9% above its March 25 closing price of GBp867.50

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)