Arbuthnot Banking Group (LON:ARBB) is the topic of conversation when Mark Thomas, analyst from Hardman & Co., discusses his recent research note titled “2023: delivering strategy with strong profit growth.”
Mark highlights the bank’s successful financial year, noting a significant increase in pre-tax profit, operating income, and net assets, alongside improvements in earnings per share and dividends. Mark also explains how Arbuthnot has strategically positioned itself to thrive in a rising rate environment by adjusting the duration of its securities and increasing fixed-rate SME finance, preparing it for potential rate declines. He touches on the progress made in their SME financing franchises, with notable profit increases and loan book growth. Despite a challenging macroeconomic landscape, the bank’s cautious approach has ensured sustained high credit quality with minimal impairments. The discussion also addresses concerns about net interest margins and inflationary pressures on costs, with an emphasis on the conservative management of the bank’s lending practices to mitigate credit risks.
Arbuthnot Banking Group is a holding company for Arbuthnot Latham & Co., it offers carefully crafted expert private and commercial banking services alongside wealth planning advice from Chartered Wealth Planners and discretionary investment management.
