UK's Arbuthnot Banking H1 pretax profit edges up, raises dividend
UK's Arbuthnot Banking H1 pretax profit edges up, raises dividend
Overview
UK private and commercial bank's H1 pretax profit rose slightly to £11 mln yr/yr
Earnings per share increased to 49.9p from 42.5p a year earlier
Company raised interim dividend by 2p to 24p per share
Outlook
Company says UK economy faces stubborn inflation and possibility of higher-for-longer interest rates
Arbuthnot says war in Middle East affecting supply chains and global energy markets
Company expects to continue growing by taking market share despite uncertain economic backdrop
Result Drivers
SPECIALIST LENDING GROWTH - Strong growth in specialist lending balances, with Specialist Division lending up 18% since year end and 17% yr/yr, and Renaissance Asset Finance loan book up 29% in H1, mainly from high-value car financing for high-net-worth clients
WEALTH MANAGEMENT INFLOWS - Wealth Management division FUMA rose 12% since year end and 26% yr/yr, with net inflows of £189 mln in H1, supported by new product launches and organic growth
DEPOSIT GROWTH - Customer deposits increased 4% in H1 and 8% yr/yr to £4.78 bln, with commercial banking deposit growth offsetting seasonal outflows in private banking
Company press release: ID:nRSU1054Na
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 56.99 mln |
|
H1 Net Income |
| GBP 8.14 mln |
|
H1 Net Interest Income |
| GBP 59.57 mln |
|
H1 Net Fee Income |
| GBP 16.77 mln |
|
H1 Pretax Profit |
| GBP 11.04 mln |
|
Analyst Coverage
Wall Street's median 12-month price target for Arbuthnot Banking Group PLC is GBp1,500.00, about 80.7% above its July 20 closing price of GBp830.00
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago
Reuters Recommended Reads
July 21 - BAWAG Q2 net profit rises on higher interest income, expects PTSB acquisition to close by Q4
July 21 - Julius Baer posts H1 net profit of $831 million
July 20 - UK finance firms sharpen staff scrutiny as new misconduct regime looms
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)