Arbuthnot (LSE: ARBB), the 175 year old broking, research, wealth management and market making bank, today reported encouraging trading results for three months ending 30th September 2009, and expressed cautious optimism about outlook for the full year 2009 results.
The management also reported that the loan portfolios acquired from Citi in August, and Liverpool Victoria in February, are performing according to expectations.
Arbuthnot Latham, the company’s private banking and wealth management division, maintained strong capital and liquidity ratios and has traded profitably in third quarter.
Gilliat Financial Solutions - a structured product business started in June - has begun selling its first products to the IFA market in September.
Meanwhile, Arbuthnot Securities, which provides investment banking services, was reported as being profitable in each month of the third quarter. The business also boasts an improved corporate finance pipeline going forward.
Operating income in six months ending 30 June 2009 came to £21.5 million (£23.5 million H1 2008). The reduction stems mainly from the reduced UK private banking interest revenue. Arbuthnot’s cost to income ratio runs at just over 60%, while the Core tier 1 ratio was at 9.6% at end of financial 2008.
Arbuthnot is showing there is life in the banking sector
Published: 15:28 22 Oct 2009 BST