Arbuthnot posts £20.8m profit before tax for H1 2024

The group saw a notable increase in funds under management, rising 43% year on year to £1.96 billion.

Arbuthnot Banking Group PLC, the parent company of Arbuthnot Latham & Co., Limited, has reported its financial results for the six months ending 30 June 2024. The group posted a profit before tax of £20.8 million, down from £26.4 million in the same period in 2023. This decline aligns with expectations due to the repricing of existing fixed-rate deposits onto higher terms upon renewal.

H1 2024

The underlying profit before tax mirrored the reported profit at £20.8 million, compared to £29.3 million the previous year. Earnings per share were 94.6p, a decrease from 129.4p in June 2023 and 222.8p in December 2023.

Arbuthnot’s capital ratios saw a slight decline, with the CET1 capital ratio at 11.6% (12.2% in June 2023, 13.0% in December 2023) and the total capital ratio at 13.6% (14.5% in June 2023, 15.2% in December 2023). The company had previously announced and paid an interim dividend of 20p per share and a special dividend of 20p per share in June. Net assets per share increased to £15.75 from £14.70 in June 2023 and £15.47 in December 2023.

Customer loans, including leased assets, grew by 3% in the first half of 2024 to £2.40 billion, representing a 7% year-on-year increase. The Specialist Lending Divisions’ loan balances saw substantial growth, increasing by 12% in the first half of the year and 29% year-on-year, reaching £861.1 million.

Customer deposits rose to £3.9 billion, marking a 3% increase since year-end and a 19% year-on-year growth. Lower-cost commercial transactional deposits experienced annualised growth of 19%, reaching £1.14 billion, reflecting the group’s successful strategy to expand these balances.

Funds under management and administration grew significantly to £1.96 billion, a 15% increase from December 2023 and a 43% year-on-year rise. This growth was driven by a four-fold increase in net inflows compared to the first six months of 2023.