11th Oct 2013 10:00
LONDON (Alliance News) - Arbuthnot Banking Group PLC said in a trading update Friday that its two subsidiaries made good progress in the three months to September 30, and that its recently announced sale and leaseback was progressing according to plan.
Last Friday the bank announced that it had exchanged contracts with investment company GMS BRICKS for the sale and leaseback of their headquarters building at 7-21 Wilson Street, London. Under the terms of the sale and leaseback agreement the cash consideration receivable by Arbuthnot is GBP26.2 million. It will enter into a 16-year lease on Wilson Street with an initial rent of GBP1.75 million per year.
The net gain for Arbuthnot from the transaction is expected to be GBP5.8 million.
In retail banking, its subsidiary Secure Trust Bank saw strong demand for its lending and deposit products. STB has begun plans to enter the small- to medium-sized enterprise lending market. Arbuthnot said that STB had recruited two experienced professionals to help build an invoice financing business that it plans to launch in the first half of 2014.
In the private banking sector, subsidiary Arbuthnot Latham has seen a fall in its funding rates, reversing margin compression that it experience in 2012. It opened an office in Dubai in July, the company said, and although activity levels were reduced during the hot summer months, the office had seen good interest from the expatriate community.
Shares in Arbuthnot were trading down 0.25 pence at 975.00 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2013 Alliance News Limited. All Rights Reserved.
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