Arbuthnot Banking Group Plc · LSE:ARBB
Arbuthnot Banking — FY2013 Earnings Presentation
14 slides from Arbuthnot Banking's earnings presentation, Mar 20, 2014
Slide 1: Arbuthnot Banking Group PLC 2013 Year End Results
Arbuthnot Banking Group PLC 2013 YEAR END RESULTS 20 March 2014
Slide 2: 2013 Year End Review
2013 Year End Review ANDREW SALMON – Chief Operating Officer JAMES COBB – Group Finance Director
Slide 3: Key Messages
PAGE 3 Key Messages Significant growth with underlying profits increasing Record earnings Profit before tax £15.7m an increase of 25% Operating income exceeded £100m for first time Good growth by both banks in all key businesses Secure Trust Bank acquisitions fully integrated Arbuthnot
Slide 4: Headline Results
PAGE 4 Headline Results 2013 2012 Operating Income exceed £100m for the Operating Income £100.0 £65.6m first time m 14% positive operating leverage Operating Expenses £73.6m £53.0m PBT increased by 25% to record levels Profit Before Tax £15.7m £12.6m Underlying PBT increased 59% EPS falls
Slide 5: Divisional Performance
PAGE 5 Divisional Performance £(000’s) 2013 2012 Change Private Banking (Arbuthnot Latham) 7,728 2,058 276% Retail Banking (Secure Trust) 17,193 17,253 0% Group Centre (9,208) (6,712) (37%) Profit Before Tax 15,713 12,593 Tax (4,198) (1,128) Loss from Discontinued Ops (347) Profit After Tax 11,515 1
Slide 6: Private Banking
PAGE 6 Private Banking Profit before tax of £7.7m Sale and lease back transaction generated a gain of £6.5m Further impairments on legacy equity investments taken £0.8m Customer assets increased by 18% to £341m Customer deposits increased by 5% to £521m Assets under management increased
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 17% (18% in 2013) Deposit growth CAGR 16% (5% in 2013) AUM growth CAGR 31% (40% in 2013)
Slide 8: Retail Banking
PAGE 8 Retail Banking Profit before tax of £17.2m Underlying profit increased to £25.2m (2012:£16.8m) Customer assets increased by 31% to £391m Customer deposits increased by 9% to £437m Customer net margin improved by 190 bps to 16.9% Positive operating leverage of 17% Customer number
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% (31% in 2013) Deposit growth CAGR 47% (9% in 2013) Lending Volume growth CAGR 85% (50% in 2013)
Slide 10: Appendix
Appendix
Slide 11: Underlying profit (1/2)
PAGE 11 Underlying profit (1/2) Underlying Profit Bridge (£m) 59% Growth
Slide 12: Underlying profit (2/2)
PAGE 12 Underlying profit (2/2) £(000’s) 2012 2013 Profit after tax 12,593 15,713 Gain on acquisition of ELL (9,830) ELL fair value amortisation 3,056 4,066 Management incentives post acquisition 1,700 - Excess funding prior to acquisition 1,900 - Cost of acquisitions 1,428 854 Cost of option scheme
Slide 13: Lending Balances
PAGE 13 Lending Balances £(m’s) 2009 2010 2011 2012 2013 Arbuthnot Latham 178 211 238 289 341 Good growth in all portfolios Personal Lending 15 22 44 68 79 Building a diversified lending Motor Finance 5 31 63 90 115 business Retail Finance 6 25 45 66 115 SME lending starting (both Everyday Loa
Slide 14: Forward Looking Statements
Forward Looking Statements PAGE 14 This document is a summary only of certain information contained in the announcement dated 20 March 2014 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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