Arbuthnot Banking Group Plc · LSE:ARBB
Arbuthnot Banking — FY2022 Earnings Presentation
26 slides from Arbuthnot Banking's earnings presentation, Mar 30, 2023
Slide 1: Arbuthnot Banking Group PLC 2022 Year-end Results
Classification: Confidential Arbuthnot Banking Group PLC - 2022 Year-end Results ARBUTHNOT BANKING GROUP PLC 2022 Year-end Results 30 March 2023
Slide 2: Highlights
Classification: Confidential Arbuthnot Banking Group PLC - 2022 Year-end Results Highlights Strategy & group overview Financial review Appendix 2
Slide 3: Key Messages
Classification: Confidential Arbuthnot Banking Group PLC - 2022 Year-end Results Key Messages Financial Key Indicators • Reported profit before tax of £20.0m (FY21: £4.6m) • Gross yield on loan book of 5.7% (FY21: 4.5%) • Underlying profit before tax of £31.1m (FY21: £17.0m), an increase of 83% • Co
Slide 4: Financial Highlights and KPIs
Classification: Confidential Arbuthnot Banking Group PLC - 2022 Year-end Results Financial Highlights and KPIs Key Performance Indicator FY22 FY21 % Change Net revenue margin 5.1% 4.1% 24% Commentary Total cost income ratio 79% 92% (14%) Underlying PBT £31.1m £17.0m 83% • Total ordinary dividend of
Slide 5: Strategy & group overview
Classification: Confidential Arbuthnot Banking Group PLC - 2022 Year-end Results Highlights Strategy & group overview Financial review Appendix 5
Slide 6: Group Strategic Overview
Classification: Confidential Arbuthnot Banking Group PLC - 2022 Year-end Results Group Strategic Overview Business model Deposits Lending Property Lending Deposits Truck Leasing Asset Finance Wealth Management Invoice Finance 0.61% 5.7% Cost of funding Gross interest yield (FY22) (FY22) 6 0.39% (FY2
Slide 7: Strategic “Future State” Vision
Classification: Confidential Arbuthnot Banking Group PLC - 2022 Year-end Results Strategic “Future State” Vision Pre tax Return on Capital Loans £ bn Capital £m Gross Margin Employed Division Future Future Future Future Future Future Future Future 2021 2022 2021 2022 2021 2022 2021 2022 State 1 Stat
Slide 8: Banking Overview
Classification: Confidential Arbuthnot Banking Group PLC - 2022 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 - 2022 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 - 2022 Year-end Results Renaissance Asset Finance (RAF) Overview of the business RAF Loan book growth & gross interest yield Acquired in April 2017, the subsidiary is based in Basildon with a sales team giving UK wide coverage. 45 staff in tot
Slide 11: Arbuthnot Commercial Asset Based Lending (ACABL)
Classification: Confidential Arbuthnot Banking Group PLC - 2022 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 30 st
Slide 12: Asset Alliance Group (AAG)
Classification: Confidential Arbuthnot Banking Group PLC - 2022 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. Widesp
Slide 13: Financial review
Classification: Confidential Arbuthnot Banking Group PLC - 2022 Year-end Results Highlights Strategy & group overview Financial review Appendix 13
Slide 14: Summarised Income Statement & Balance Sheet
Classification: Confidential Arbuthnot Banking Group PLC - 2022 Year-end Results Summarised Income Statement & Balance Sheet Income statement (£m) Financial Year 2022 Financial Year 2021 % Change Commentary Interest income 120.01 77.10 56% • Interest income up 56% due to a combination Interest expen
Slide 15: Profit Before Tax Progression
Classification: Confidential Arbuthnot Banking Group PLC - 2022 Year-end Results Profit Before Tax Progression Commentary • 2022 PBT £20.0m, up from £4.6m in 2021 • Subsidiary profit growth over £1.4m as loan book increases 60.0 • Core funding benefit from subsidiaries 3.8 increased £8.8m 2.1 • Core
Slide 16: Summary Financials - Operating Segments
Classification: Confidential Arbuthnot Banking Group PLC - 2022 Year-end Results Summary Financials - Operating Segments Commentary Profit/(Loss) before Tax £m Financial Year 2022 Financial Year 2021 % Change • Banking 193%/£12.6m higher, mainly due to Banking 19.14 6.53 193% increased loan rates re
Slide 17: Loan Portfolio Analysis - Key Metrics
Classification: Confidential Arbuthnot Banking Group PLC - 2022 Year-end Results Loan Portfolio Analysis - Key Metrics £597k Average loan amount 98.7% of total lending 52.5% LTV average for the (£481k in 2021) secured Banking loan book – maximum 70% permitted 5.7% Gross interest yield in 5.1% Net in
Slide 18: Loan Book Development
Classification: Confidential Arbuthnot Banking Group PLC - 2022 Year-end Results Loan Book Development Increase of £215m (11%) in 2022 vs 2021 Commentary 2,500 189 2,000 • Banking growth of £57m 130 269 182 97 134 • Acquired mortgage portfolio continued to 1,500 32 178 149 31 amortise down £29m 9 6
Slide 19: Customer Deposit Analysis - Key Metrics
Classification: Confidential Arbuthnot Banking Group PLC - 2022 Year-end Results Customer Deposit Analysis - Key Metrics 11.1 Month 1.30% Average 0.61% FY22 cost £919m Notice £69m Call and £3.09bn Average term deposit interest of funding and Time inflows Current Net Flow Customer (original) rate at
Slide 20: Capital Surplus
Classification: Confidential Arbuthnot Banking Group PLC - 2022 Year-end Results Capital Surplus Commentary • Total capital position at year end of £213.0m, with surplus capital of £35.6m 60.0 • CET1 capital ratio at the period end of 11.6% 16.5 • Regulation: Reversal of Intangible software deductio
Slide 21: Underlying Profit Reconciliation
Classification: Confidential Arbuthnot Banking Group PLC - 2022 Year-end Results Underlying Profit Reconciliation £’000 2022 2021 Profit before tax and group recharges 20,009 4,638 Exceptional reduction in BoE Base Rate* - 11,492 Loss on sale of King Street property 4,590 - Write down of repossessed
Slide 22: Group Summary
Classification: Confidential Arbuthnot Banking Group PLC - 2022 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. Significant 2022 profit
Slide 23: Appendix
Classification: Confidential Arbuthnot Banking Group PLC - 2022 Year-end Results Highlights Strategy & group overview Financial review Appendix 23
Slide 24: Substantial Track Record of Value Creation
Classification: Confidential Arbuthnot Banking Group PLC - 2022 Year-end Results Substantial Track Record of Value Creation Overview Share Price Performance & TSR ̵ Market capitalisation of £141 million1 ̵ £94m (£6.30 per share) cumulatively returned to shareholders since 2012 ̵ Total dividends of 4
Slide 25: Disclaimer
Classification: Confidential Arbuthnot Banking Group PLC - 2022 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 26: Thank You
Classification: Confidential Arbuthnot Banking Group PLC - 2022 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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