Arbuthnot Banking Group Plc · LSE:ARBB
Arbuthnot Banking — FY2021 Earnings Presentation
27 slides from Arbuthnot Banking's earnings presentation, Mar 24, 2022
Slide 1: 2021 Year-end Results
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results ARBUTHNOT BANKING GROUP PLC 2021 Year-end Results 24 March 2022
Slide 2: Highlights; Strategy & group overview; Financial review
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Highlights Strategy & group overview Financial review Appendix 2
Slide 3: Key Messages
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Key Messages Financial Key Indicators • Reported profit before tax of £4.6m (FY20: loss of £1.1m) • Gross yield of 4.5% • Underlying profit before tax of £17.0m (FY20: £5.1m) • Cost of funding remains low, falling to 0.
Slide 4: Financial Highlights and KPIs
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Financial Highlights and KPIs Key Performance Indicator FY21 FY20 % Change Commentary Net revenue margin 4.1% 4.1% - • Total dividend of 59 pence per share Total cost income ratio 92% 98% 6% including a Special dividend
Slide 5: Strategy & group overview
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Highlights Strategy & group overview Financial review Appendix 5
Slide 6: Group Strategic Overview
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Group Strategic Overview Business model Deposits Lending Property Lending Deposits Truck Leasing Asset Finance Wealth Management Invoice Finance 0.39% 4.5% Cost of funding Gross interest yield (FY21) (FY21) 6
Slide 7: Strategic "Future State" vision
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Strategic “Future State” vision Pre tax Return on Loans £ bn Risk Weighting Capital £m Gross Margin Capital Employed Division Future Future Future Future Future 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 State St
Slide 8: Banking Overview
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Banking Overview Overview of the business Banking Loan book growth and gross interest yield Full service Private & Commercial Bank with a heritage going £1,600m Loan book Gross Interest Yield 7.0% back to 1833 that is f
Slide 9: Wealth Management Overview
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Wealth Management Overview Overview of the business Assets under Management and revenue yield Wealth Management A service led business that provides high quality advice across all Closing AUM Average revenue yield £1,60
Slide 10: Renaissance Asset Finance (RAF)
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Renaissance Asset Finance (RAF) Overview of the business RAF Loan book growth & gross interest yield A specialist asset finance provider, Acquired in April 2017, the subsidiary is based in Basildon with a making funding
Slide 11: Arbuthnot Commercial Asset Based Lending (ACABL)
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Arbuthnot Commercial Asset Based Lending (ACABL) Overview of the business ACABL Loan book growth & gross interest yield Growth Established in January 2018. Commenced trading in May 2018 Based in Gatwick, employing 28 st
Slide 12: Arbuthnot Specialist Finance Limited (ASFL)
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Arbuthnot Specialist Finance Limited (ASFL) Overview of the business ASFL Loan book growth & gross interest yield Arbuthnot Specialist Finance provides ASFL acts as a specialist lender operating in the niche markets a f
Slide 13: Asset Alliance Group (AAG)
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Asset Alliance Group (AAG) Overview of the business AAG Loan book growth & gross interest yield A specialist lender focusing on the UK commercial vehicle and Top 5 provider of Contract Hire, bus & coach sectors. Widespr
Slide 14: Financial review
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Highlights Strategy & group overview Financial review Appendix 14
Slide 15: Summarised Income Statement & Balance Sheet
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Summarised Income Statement & Balance Sheet Income statement (£m) Financial Year 2021 Financial Year 2020 % Change Commentary Interest income 77.10 75.08 3% • Interest income up 3% with organic loan Interest expense (13
Slide 16: Profit Before Tax Progression in FY21
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Profit Before Tax Progression in FY21 Commentary 25.0 • 2021 PBT £4.6m, up from £(1.1m) in 2020 • Asset Alliance Bargain purchase profit £8.6m 2.2 1.6 1.9 2.8 • Asset Alliance PBT (£4.8m)* 20.0 1.2 • Funding benefit fro
Slide 17: Summary Financials - Operating Segments
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Summary Financials - Operating Segments Profit/(Loss) before Tax £m Financial Year 2021 Financial Year 2020 % Change Commentary Banking 6.53 2.33 180% • Banking 180%/£4.2m higher due to loan book Wealth Management growt
Slide 18: Loan Portfolio Analysis - key metrics
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Loan Portfolio Analysis - key metrics £451k Average loan amount 99.2% of total lending 51% LTV average for the 53% LTV norm - a maximum (£349k in 2020) secured Core property book 70% LTV permitted 4.5% Gross interest yi
Slide 19: Loan Book Development in 2021
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Loan Book Development in 2021 Increase of £405m (25%) in 2021 vs 2020 Commentary 2,000 130 1,800 182 1,600 97 • Banking growth of c£262m 87 92 178 32 1,400 9 • Acquired mortgage portfolio continued pay 30 269 243 8 down
Slide 20: Customer Deposit Analysis - key metrics
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Customer Deposit Analysis - key metrics 16.7 Month 0.32% Average 0.39% FY21 cost £778m Notice £728m Call and £2.84bn Average term deposit interest of funding and Time inflows Current Net Flow Customer (original) rate (0
Slide 21: Capital Surplus
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Capital Surplus 110.0 Commentary 6.7 • Total capital position at year end of £214.0m, 100.0 with surplus capital of £50.5m 3.0 • CET1 capital ratio at the period end of 12.3% 5.6 90.0 • FV adjustment of STB shares £5.6m
Slide 22: Underlying Profit reconciliation
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Underlying Profit reconciliation £’000 2021 2020 Profit before tax and group recharges 4,648 (1,090) Exceptional reduction in BoE Base Rate* 11,492 10,335 Suspension of discretionary bonus payments (6,109) Cost of estab
Slide 23: Group Summary
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Group Summary One of the oldest specialist banks in the UK, having served our clients since 1833 Well capitalised with strong liquidity and low cost of funding from a deposit-based funding model Established Private and
Slide 24: Appendix
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Highlights Strategy & group overview Financial review Appendix 24
Slide 25: Substantial Track Record of Value Creation
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Substantial Track Record of Value Creation Overview Share Price Performance & TSR ̵ Market capitalisation of £134 million1 2500 ̵ £95m (£6.36 per share) cumulatively returned to shareholders since 2012 2000 ̵ Total divi
Slide 26: Disclaimer
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results Disclaimer This presentation and the information, statements and opinions in it do not constitute, and should not be construed as, a public offer under any applicable legislation or an offer to sell or issue or solicita
Slide 27: Thank You
Classification: Confidential Arbuthnot Banking Group PLC - 2021 Year end Results ARBUTHNOT BANKING GROUP PLC Thank You Arbuthnot Banking Group PLC Arbuthnot House 7 Wilson Street Arbuthnot Banking Group: 0207 012 2400 London EC2M 2SN Sir Henry Angest – Chairman and Chief Executive www.arbuthnotgroup
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