Business
Purchase of Consumer Assets
Purchase of Consumer Assets.
About this update from Arbuthnot Banking Group Plc
[{"type":"text","content":"\n RNS Number : 9259N Arbuthnot Banking Group PLC 26 February 2009 \n \n\n\nArbuthnot Banking Group PLC\n\nPurchase of Consumer Finance Assets\n\nArbuthnot Banking Group plc ('Arbuthnot Banking Group') announces that its retail banking subsidiary Secure Trust Bank plc ('Secure Trust'), has today reached agreement with Liverpool Victoria Banking Services Ltd, part of the insurance and investment group LV=, to purchase a portfolio of personal instalment loans (the 'Loan Portfolio') for a consideration of £16.7 million. The consideration represents a discount to the gross amount receivable under the Loan Portfolio. None of the loans were in arrears as at the effective date of transfer.\n\nThe consideration for the transaction was satisfied in cash on completion. The Loan Portfolio is expected to be immediately accretive to earnings. \n\nDuring the twelve month period to 31st December 2008 the Loan Portfolio earned an average interest margin (before funding, administration and other costs) of 7.9 per cent. The Loan Portfolio will be serviced using Secure Trust's existing platform.\n\nThe Chairman of Arbuthnot Banking Group Mr. Henry Angest said 'Over the past few months, all of our businesses within the Group haven taken a number of steps to position themselves to take advantage of the opportunities presented by the current financial climate. We believe this is a good opportunity for us to act on our previously announced intention, to re-enter the UK Consumer Finance Market, and the transaction that we are announcing today, is an important component of that strategy.'\n\nMike Newton, Chief Executive of Liverpool Victoria Banking Services Ltd, said: 'We have previously announced our intention to exit consumer lending. It is not core to our main strategic businesses of insurance and investment, which are growing and thriving. This arrangement is a better solution for these loan customers, who now become part of an ongoing consumer lending business offering a wider range of products and services in that market.\n\n- ends -\n\nContacts:\n\n\n\n\n\nArbuthnot Banking Group PLC\n\n\nTel: +44 (0) 20 7012 2400\n\n\n\n\nHenry Angest, Chairman and Chief Executive\n\n\n\n\n\n\n\nAndrew Salmon, Chief Operating Officer\n\n\n\n\n\n\n...