Interest-rate delays impact profit growth

  • Arbuthnot Banking Group reports lower pretax profit
  • Pretax profit falls to £20.8 million from £26.4 million
  • Net interest income decreases to £62.05 million from £68.4 million
  • Customer deposits increase by 3% since year-end and 19% YoY
  • Assets under management and administration rise to £1.96 billion
  • Common equity Tier 1 ratio drops to 11.6% from 13%
  • CEO Henry Angest expects market opportunities in near, medium, and long term

Arbuthnot Banking Group reported a lower pretax profit due to interest-rate delays on existing fixed rate deposits despite attracting new deposits for the first half. The private and commercial bank said Tuesday that for the six months ended June 30, pretax profit fell to £20.8 million ($26.9 million) from GBP26.4 million for the same period a year earlier. Net interest income came in at GBP62.05 million, down from GBP68.4 million. Customer deposits increased to GBP3.9 billion from GBP3.3 billion, representing a 3% increase since the year end and a 19% increase year on year, it said. Arbuthnot’s assets under management and administration rose to GBP1.96 billion from GBP1.38 billion. The bank’s common equity Tier 1 ratio—a key measure of balance-sheet strength—stood at 11.6%, down from 13% as at Dec. 31, it added. ‘While an expected fall in interest rates in the second half will have a short-term impact on profit growth, the group is well positioned to take advantage of the market opportunities we anticipate over the near, medium and long term,’ Chief Executive Henry Angest said. The board declared an interim dividend of 20 pence a share, up from 19 pence a year earlier.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the bank’s financial performance and includes quotes from the CEO, making it generally factual and informative.
Noise Level: 3
Noise Justification: The article provides relevant information about the bank’s financial performance and outlook, but it lacks in-depth analysis or exploration of long-term trends or consequences of decisions on those who bear the risks.
Private Companies: Arbuthnot Banking Group
Key People: Henry Angest (Chief Executive)

Financial Relevance: Yes
Financial Markets Impacted: Banking sector
Financial Rating Justification: The article discusses the financial performance of Arbuthnot Banking Group, including changes in pretax profit, net interest income, and customer deposits, which are relevant to the banking industry and can impact the bank’s operations and stock price.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the article.

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