17th Jul 2019 12:29
(Alliance News) - Arbuthnot Banking Group PLC raised its interim dividend payment after reporting a sharp rise in first half pretax profit on increased customer loan and deposit balances, though assets under management.
The company, which provides private banking services via its principal unit Arbuthnot Latham & Co Ltd, said Wednesday pretax profit for the six months to June 30 more than doubled to GBP2.9 million from GBP1.2 million in the year ago period period.
Earnings per share, however, fell to 16.6 pence from 21.7p, due to GBP25.7 million loss on derecognition of Secure Trust Bank as an associate during the second half of 2018. Secure Trust Bank has been treated as a discontinued activity in the 2019 interim statement.
The company sold its remaining 37% stake, or 1.1 million shares, in Secure Trust Bank during the first half at GBP14.60 per share. releasing further GBP15.3 million of capital.
First half net interest income increased to GBP28.8 million from GBP24.9 million, while fee and commissions rose to GBP6.9 million from GBP6.4 million.
Customer loans increased 16% year-on-year to GBP1.28 billion from GBP1.09 billion. Deposits jumped 18% year-on-year to GBP1.83 billion.
Assets under management stood at GBP1.03 billion, down 4% from GBP1.07 billion a year ago, but up 4.5% compared to December 2018.
"The group has had a good start to the year. We have raised new capital, grown our existing businesses and continued to deliver on our plans to diversify. We have also agreed to buy a mortgage portfolio which should help to improve the returns of the group," said Chairman & Chief Executive Henry Angest.
The company in July agreed purchase GBP266 million worth of residential mortgage portfolio. The deal is expected to complete on August 8.
Arbuthnot declared an interim dividend of 16p per share, up from 15p paid a year ago.
Shares were trading 1.8% higher at 1,385.00p each in afternoon trade.
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