Arbuthnot Banking Group Plc · LSE:ARBB
Arbuthnot Banking — FY2014 Earnings Presentation
14 slides from Arbuthnot Banking's earnings presentation, Mar 19, 2015
Slide 1: Arbuthnot Banking Group PLC 2014 Year End Results
Arbuthnot Banking Group PLC 2014 YEAR END RESULTS 19 March 2015
Slide 2: 2014 Year End Review
2014 Year End Review ANDREW SALMON – Chief Operating Officer JAMES COBB – Group Finance Director
Slide 3: Key Messages
PAGE 3 Key Messages Poised for next phase of growth Group now in a position to focus investment toward Arbuthnot Latham Record earnings before tax of £22.5m an increase of 43% No “one off” transactions Successful placing by STB to accelerate growth SME divisions all now extending credit
Slide 4: Headline Results
PAGE 4 Headline Results 2014 2013 Operating Income increased 26% Operating Income £126.3m £100.0m 13% positive operating leverage Operating Expenses £85.2m £73.6m PBT increased by 43% to record levels Underlying PBT increased 65% Profit Before Tax £22.5m £15.7m Dividend per share 27p which
Slide 5: Divisional Performance
PAGE 5 Divisional Performance £(000’s) 2014 2013 Change Private Banking (Arbuthnot Latham) 3,628 7,728 (53%)* Retail Banking (Secure Trust Bank) 26,339 17,193 53% Group Centre (7,452) (9,208) 19% Profit Before Tax 22,515 15,713 Tax (5,499) (4,198) Profit After Tax 17,016 11,515 Of Which Attributable
Slide 6: Private Banking
PAGE 6 Private Banking Profit before tax of £3.6m Prior year included sale and lease back transaction which generated a gain of £6.5m, therefore 200% business growth Customer assets increased by 57% to £536m (26% excluding portfolio purchase) Customer deposits increased by 13% to £590m Ass
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 24% (57% in 2014) Deposit growth CAGR 15% (13% in 2014) AUM growth CAGR 30% (26% in 2014)
Slide 8: Retail Banking
PAGE 8 Retail Banking Profit before tax of £26.3m Underlying profit increased to £33.3m (2013:£25.2m) Customer assets increased by 59% to £622m Customer deposits increased by 39% to £608m Lending volumes increased by 79% to £546m Customer numbers increased 22% to 429,507 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 50% (59% in 2014) Deposit growth CAGR 36% (39% in 2014) Lending Volume growth CAGR 63% (79% in 2014)
Slide 10: Appendix
Appendix
Slide 11: Underlying profit (1/2)
PAGE 11 Underlying profit (1/2) Underlying Profit Bridge (£m) 95% Growth
Slide 12: Underlying profit (2/2)
PAGE 12 Underlying profit (2/2) £(000’s) 2013 2014 Profit after tax 15,713 22,515 ELL fair value amortisation 4,066 4,294 Cost of option scheme 2,221 1,542 V12 amortisation 893 893 Cost of acquisitions 854 198 Sale and lease back (6,535) - Dubai office 879 981 Regional Office Investment - 217 180th
Slide 13: Lending Balances
PAGE 13 Lending Balances £(m’s) 2009 2010 2011 2012 2013 2014 Good growth in all portfolios Arbuthnot Latham 178 211 238 289 341 536 Arbuthnot Latham completed acquisition of Personal Lending 15 22 44 68 78 88 residential mortgage portfolio Motor Finance 5 31 63 90 115 138 Retail Finance 6 25 45
Slide 14: Forward Looking Statements
PAGE 14 Forward Looking Statements This document is a summary only of certain information contained in the announcement dated 19 March 2015 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
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