Slide 1: Arbuthnot Banking Group PLC 2015 Year End Results
Arbuthnot Banking Group PLC 2015 YEAR END RESULTS 17 March 2016
Slide 2: 2015 Year End Review
2015 Year End Review ANDREW SALMON – Chief Operating Officer JAMES COBB – Group Finance Director
Slide 3: Key Messages
PAGE 3 Key Messages Diversification of business streams underway Record earnings before tax of £34.2m an increase of 52% (including Everyday Loans) Disposal of Everyday Loans agreed and expected to realise a profit of £115m Transaction progressing according to plan Special dividend of 25p
Slide 4: Headline Results
PAGE 4 Headline Results 2015 2014 Operating Income increased 38% Operating Income £126.7m *£92.0m 8% positive operating leverage Operating Expenses £86.1m *£66.2m Statutory PBT increased by 63% Final Dividend per share 17p Profit Before Tax £22.6m *£13.9m Dividend per share 29p, an increas
Slide 5: Divisional Performance
PAGE 5 Divisional Performance £(000’s) 2015 2014 Change Private Banking (Arbuthnot Latham) 5,998 3,628 65% Retail Banking (Secure Trust Bank) 25,174 17,755 42% Group Centre (8,604) (7,452) (15%) Profit Before Tax 22,568 13,931 Tax (5,436) (3,444) Profit from Discontinued Operations After Tax 9,392 6
Slide 6: Private Banking
PAGE 6 Private Banking Profit before tax of £6m increased by 65% Customer assets increased by 15% to £619m Customer deposits increased by 53% to £897m Assets under management increased by 11% to £739m Highlights : Record level of new loan origination £250m up 45% Attracting new clients
Slide 7: Private Banking – Business Momentum
PAGE 7 Private Banking – Business Momentum Customer Loans (£000’s) Customer Deposits (£000’s) Assets Under Management (£000’s) Loan growth CAGR 23% (YoY - 15% in 2015) Deposit growth CAGR 21% (YoY - 53% in 2015) AUM growth CAGR 27% (YoY - 11% in 2015)
Slide 8: Retail Banking
PAGE 8 Retail Banking Profit before tax of £36.8m (including Everyday Loans) Customer assets increased by 73% to £1.1bn (including Everyday Loans) Customer deposits increased by 70% to £1bn Lending volumes increased by 65% to £903m Customer numbers increased 33% to 570,759 Highlights :
Slide 9: Retail Banking – Business Momentum
PAGE 9 Retail Banking – Business Momentum Customer Loans (£000’s) Customer Deposits (£000’s) Lending Volumes (£000’s) Loan growth CAGR 66% (YoY - 73% in 2015) Deposit growth CAGR 49% (YoY - 70% in 2015) Lending Volume growth CAGR 81% (65% in 2015)
Slide 10: Appendix
Appendix
Slide 11: Lending Balances
PAGE 11 Lending Balances £(m’s) 2009 2010 2011 2012 2013 2014 2015 Arbuthnot Latham 178 211 238 289 341 536 619 Personal Lending 15 22 44 68 78 88 74 Motor Finance 5 31 63 90 115 138 166 Retail Finance 6 16 21 26 70 117 220 Everyday Loans - - - 74 81 94 - Commercial Lending (SME) - - - - 2 143 468 O
Slide 12: Underlying profit (1/2)
PAGE 12 Underlying profit (1/2) Underlying Profit Bridge (£m) 46% Growth
Slide 13: Underlying profit (2/2)
PAGE 13 Underlying profit (2/2) £(000’s) 2014 2015 Profit before tax from continuing operations 13,931 22,568 Cost of option scheme 1,542 662 V12 amortisation 893 893 Cost of acquisitions 198 422 Investment in operating systems - 1,123 AL commercial banking investment - 333 Regional office investmen
Slide 14: Forward Looking Statements
PAGE 14 Forward Looking Statements This document is a summary only of certain information contained in the announcement dated 17 March 2016 and should be read in conjunction with the full text of the announcement. This document contains forward looking statements with respect to the business, strate