Arbuthnot Banking Group PLC Trading Statement and Notice of Meeting (9671M)
May 14 2020 - 10:54AM
UK Regulatory
TIDMARBB
RNS Number : 9671M
Arbuthnot Banking Group PLC
14 May 2020
14 May 2020
ARBUTHNOT BANKING GROUP PLC
Trading Statement and Notice of Meeting
Trading Statement
As today would normally have been the date of the Company's
Annual General Meeting ("AGM") we are, in line with the Company's
practice of providing a trading update at the time of its AGM,
making the following statement regarding the trading performance of
the Group since the start of 2020.
The Group had traded well up to the introduction of the
Coronavirus lockdown. At the end of March 2020, Customer loan
balances were 35% higher than the prior year and had increased by
4% from the level reported at 31 December 2019. New loan
origination volumes were 38% greater than the same period in the
prior year. Deposit raising activities had also continued with
customer deposit balances increasing by 2% from the level at the
year-end which itself reflected recent strong underlying growth.
Despite the uncertainties in the markets the Investment Management
business continued to see net inflows from clients.
Following the introduction of the UK Government's public health
restrictions, the Group reacted swiftly to protect its staff and
clients. All activities have been moved to remote operation with
all staff working successfully from home. Client communications
with our bankers has been more in-depth and on average longer in
duration, which in the long term should prove mutually beneficial,
as we continue the progress made in 2019 on developing deeper
relationships with clients. At the same time recorded client
complaints have fallen in volume.
Given the strength of the Group's resources, we have not sought
to use any of the emergency support measures that are available
from the UK Government; no staff have been placed on furlough or
made redundant and we have continued to pay all of our tax
liabilities by their original due dates.
The Bank has remained open to new introductions and lending
opportunities and has funded GBP26m of new loans during the
lockdown. Lending has proved more challenging given the uncertainty
that exists in property valuations but other credit mitigants have
allowed our bankers to continue to support the clients' needs. The
Investment Management business has continued to see net inflows and
in line with our cautious private banking approach, ensured that
the most popular portfolios saw limited falls in values and as a
result, overall in the first four months assets under management
fell by 6%.
The Group has applied to join the British Business Bank schemes
to provide funding to support the SME sector. The Group has also
followed the guidance from the Government regarding provision of
payment holidays and other forbearance measures. These have been
provided where appropriate and without delay.
To date the core lending portfolios have seen modest take up of
payment holiday requests. The purchased mortgage portfolios have
granted payment holidays to 25% of the borrowers and RAF, our asset
finance business, has granted payment holidays to 67% of its
customers. These appear to be comparable to similar portfolios in
the same markets and these loans remain well secured by properties
or assets and where appropriate other guarantees.
Key metrics such as liquidity and capital have continued to be
monitored in the normal fashion and have remained strong.
As outlined on 26 March 2020 in our audited 2019 results
announcement, the reduction in the base rate to a historically low
level, will materially reduce the Group's income and profitability
for 2020. However, the Group has taken steps to manage its cost
base and, together with the action the Bank of England has taken in
reducing capital buffer requirements, anticipates that even after
the issues that are likely to arise in the coming months concerning
IFRS9 and other credit issues, the Group will have greater surplus
capital at the end of 2020 than originally planned. The Board
believes that this will provide a robust platform from which the
Group should be able to grow strongly, once the economy begins to
recover.
Notice of Meeting
Arbuthnot Banking Group PLC announces that the Company's AGM has
now been arranged to be held at Arbuthnot House, 7 Wilson Street,
London EC2M 2SN on Tuesday 16 June 2020. At the AGM, Shareholders
will be asked to vote on a number of resolutions including the
re-appointment of Mazars LLP as the Company's auditor. The
resolutions to be put to the Meeting are set out in the Notice of
Meeting, available on the Company's website at
http://www.arbuthnotgroup.com/results_presentations.html.
The Company is closely monitoring the COVID-19 situation,
including UK Government guidance and will continue to do so in the
lead up to the AGM. The health of our shareholders, employees and
stakeholders remains extremely important to us and accordingly, the
Board has taken into consideration the compulsory 'Stay at Home'
measures that have been published by the UK Government. These
measures provide that public gatherings of more than two people are
currently not permitted. Accordingly shareholders, advisers and
other guests will not be allowed to attend the AGM in person and
anyone seeking to attend the meeting will be refused entry.
Shareholders are requested therefore to submit their votes, in
respect of the business to be discussed, via proxy as early as
possible. Shareholders should appoint the Chairman of the meeting
as their proxy. If a shareholder appoints someone else as their
proxy, that proxy will not be able to attend the meeting in person
or cast the shareholder's vote.
The business at the AGM will be curtailed to the formal business
section only, with no wider presentations on business performance
or Q&A.
In the event that further disruption to the 2020 AGM becomes
unavoidable, we will announce any changes to the meeting (such as
timing or venue) as soon as practicably possible through the
Company's website.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
The Directors of the Company accept responsibility for the
contents of this announcement.
Enquiries:
Arbuthnot Banking Group
Sir Henry Angest, Chairman and Chief Executive
Andrew Salmon, Group Chief Operating Officer
James Cobb, Group Finance Director 0207 012 2400
Grant Thornton UK LLP (Nominated Adviser and
NEX Exchange Corporate Advisor)
Colin Aaronson/Samantha Harrison /Niall McDonald 0207 383 5100
Numis Securities Ltd (Joint Broker)
Stephen Westgate 0207 260 1000
Shore Capital Ltd (Joint Broker)
Hugh Morgan/Daniel Bush 0207 408 4090
Maitland/AMO (Financial PR)
Neil Bennett/Sam Cartwright/Jonathan Cook 0207 379 5151
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCBSGDUDUBDGGS
(END) Dow Jones Newswires
May 14, 2020 10:54 ET (14:54 GMT)
Arbuthnot Banking (LSE:ARBB)
Historical Stock Chart
From Apr 2024 to May 2024
Arbuthnot Banking (LSE:ARBB)
Historical Stock Chart
From May 2023 to May 2024