Arbuthnot profit surges after sale of Everyday Loans

Arbuthnot Banking Group announced a profit for the 2016 calendar year of £228m on Thursday, up from £27m in 2015.

The AIM-traded company, which is the holding company for Arbuthnot Latham & Co and has an 18.6% shareholding in Secure Trust Bank, said that profit was boosted by a £228m gain realised from the sale of Everyday Loans and Secure Trust Bank shares.

Its profit before tax on continuing operations was £0.2m, swinging from a loss of £2.6m in 2015, and its underlying profit before tax was £4m, up from £3m.

Special dividends paid in the year totalled 325p per share.

The company said its operating income increased by 20% to £41.5m, and earnings per share were 1127.2p, up from 86.3p.

Its board declared a final dividend per share of 18p, up 6% from 17p, while its total dividend per share was 356p, up from 29p.

Underlying net assets increased by 90% to £234m, while net assets per share improved 23% to 1534p.

Arbuthnot Banking Group said its return on equity for the year was 88%, up from 15%, while its underlying return on deployed equity improved to 9.6% from 9.2%.

“This has been a momentous and highly profitable year for Arbuthnot Banking Group,” commented chairman and chief executive Sir Henry Angest.

“We have completed a number of major corporate transactions which have transformed the group and set it on a new path of development.

“The capital generated by these corporate transactions will allow Arbuthnot Latham to develop overtime into a more significant private and commercial bank.”