Arbuthnot Banking Group Plc · LSE:ARBB
Arbuthnot Banking — FY2023 Earnings Presentation
26 slides from Arbuthnot Banking's earnings presentation, Mar 28, 2024
Slide 1: ARBUTHNOT BANKING GROUP PLC 2023 Year-end Results
Classification: Confidential Arbuthnot Banking Group PLC - 2023 Year-end Results ARBUTHNOT BANKING GROUP PLC 2023 Year-end Results 28 March 2024
Slide 2: Agenda
Classification: Confidential Arbuthnot Banking Group PLC - 2023 Year-end Results Highlights Strategy & group overview Financial review Appendix 2
Slide 3: Key Messages
Classification: Confidential Arbuthnot Banking Group PLC - 2023 Year-end Results Key Messages Financial Key Indicators • Reported profit before tax of £47.1m (FY22: £20.0m), an increase of 135% • Gross yield on loan book of 8.1% (FY22: 5.7%) • Underlying profit before tax of £51.4m (FY22: £31.1m), a
Slide 4: Financial Highlights and KPIs
Classification: Confidential Arbuthnot Banking Group PLC - 2023 Year-end Results Financial Highlights and KPIs Key Performance Indicator FY23 FY22 % Change Net revenue margin 5.7% 5.1% 12% Commentary Total cost income ratio 73% 79% (8%) Reported PBT £47.1m £20.0 135% • Total ordinary dividends for t
Slide 5: Agenda
Classification: Confidential Arbuthnot Banking Group PLC - 2023 Year-end Results Highlights Strategy & group overview Financial review Appendix 5
Slide 6: Group Strategic Overview
Classification: Confidential Arbuthnot Banking Group PLC - 2023 Year-end Results Group Strategic Overview Business model Deposits Lending Property Lending Deposits Truck Leasing Asset Finance Wealth Management Low-cost relationship driven deposit business Invoice Finance model to fund higher margin
Slide 7: Strategic “Future State” Vision
Classification: Confidential Arbuthnot Banking Group PLC - 2023 Year-end Results Strategic “Future State” Vision Pre-tax Return on Capital Balances £bn Capital deployed £m Gross Margin Employed Division Future Future Future Future 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 State 2 S
Slide 8: Banking Overview
Classification: Confidential Arbuthnot Banking Group PLC - 2023 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 8.0% back to 1833 that is f
Slide 9: Wealth Management Overview
Classification: Confidential Arbuthnot Banking Group PLC - 2023 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 £2,00
Slide 10: Renaissance Asset Finance (RAF)
Classification: Confidential Arbuthnot Banking Group PLC - 2023 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. 54 staff in tot
Slide 11: Arbuthnot Commercial Asset Based Lending (ACABL)
Classification: Confidential Arbuthnot Banking Group PLC - 2023 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 32 st
Slide 12: Asset Alliance Group (AAG)
Classification: Confidential Arbuthnot Banking Group PLC - 2023 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 bus & coach and Top 5 provider* of Contract Hire, commercial vehicle sectors. Widesp
Slide 13: Agenda
Classification: Confidential Arbuthnot Banking Group PLC - 2023 Year-end Results Highlights Strategy & group overview Financial review Appendix 13
Slide 14: Summarised Income Statement & Balance Sheet
Classification: Confidential Arbuthnot Banking Group PLC - 2023 Year-end Results Summarised Income Statement & Balance Sheet Income statement (£m) Financial Year 2023 Financial Year 2022 % Change Commentary Interest income 231.84 120.01 93% • Interest income up 93% due to a combination Interest expe
Slide 15: Profit Before Tax Progression
Classification: Confidential Arbuthnot Banking Group PLC - 2023 Year-end Results Profit Before Tax Progression Commentary • 2023 PBT of £47.1m, up from £4.6m in 2021 • Subsidiary profit growth £4.4m due to loan book growth and BoE base rate increases £90m • Core funding benefit from subsidiaries inc
Slide 16: Summary Financials - Operating Segments
Classification: Confidential Arbuthnot Banking Group PLC - 2023 Year-end Results Summary Financials - Operating Segments Commentary Profit/(Loss) before Tax £m Financial Year 2023 Financial Year 2022 % Change • Banking 232%/£44.3m higher, mainly due to Banking 63.45 19.14 232% increased loan income
Slide 17: Loan Portfolio Analysis - Key Metrics
Classification: Confidential Arbuthnot Banking Group PLC - 2023 Year-end Results Loan Portfolio Analysis - Key Metrics £671k average loan amount 99.4% of total lending 43.4% LTV average for the Specialist lending 33% of (£597k in 2022) secured Banking loan book – total loans (27% in 2022) maximum 70
Slide 18: Loan Book Analysis
Classification: Confidential Arbuthnot Banking Group PLC - 2023 Year-end Results Loan Book Analysis Breakdown of Customer Lending Loan balances £m FY 2023 FY 2022 Core 1,566 1,616 9% RAF 199 134 14% ACABL 240 269 12% AAG 327 189 10% 6% Total 2,332 2,208 9% Commentary 73% • Total lending increased by
Slide 19: Customer Deposit Analysis - Key Metrics
Classification: Confidential Arbuthnot Banking Group PLC - 2023 Year-end Results Customer Deposit Analysis - Key Metrics Time deposits 3.17% annualised 2.43% FY23 cost £443m Notice £224m Call and £3.76bn average original average deposit of funding and Time net Current net Customer term 10.0 months i
Slide 20: Capital Surplus
Classification: Confidential Arbuthnot Banking Group PLC - 2023 Year-end Results Capital Surplus £90m Commentary 35.4 • Total capital position at year end of £260.0m, £80m with surplus capital of £42.4m • CET1 capital ratio at the period end of 13.0% 6.9 £70m • Capital raise of £11.6m (net) • 2023 r
Slide 21: Underlying Profit Reconciliation
Classification: Confidential Arbuthnot Banking Group PLC - 2023 Year-end Results Underlying Profit Reconciliation £’000 2023 2022 Profit before tax 47,117 20,009 Loss on sale of King Street property - 4,590 Profits earned on sale of trucks included in bargain purchase 4,267 6,479 Underlying Profit 5
Slide 22: Group Summary
Classification: Confidential Arbuthnot Banking Group PLC - 2023 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 and 20
Slide 23: Agenda
Classification: Confidential Arbuthnot Banking Group PLC - 2023 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 - 2023 Year-end Results Substantial Track Record of Value Creation Overview ARBB Share Price Performance & TSR ̵ Market capitalisation of £170 million1 ̵ £94.4m (£6.31 per share) cumulatively returned to shareholders since 2014 ̵ Total dividen
Slide 25: Disclaimer
Classification: Confidential Arbuthnot Banking Group PLC - 2023 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 - 2023 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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