Arbuthnot Banking Group Plc · LSE:ARBB
Arbuthnot Banking — FY2020 Earnings Presentation
25 slides from Arbuthnot Banking's earnings presentation, Mar 24, 2021
Slide 1: Arbuthnot Banking Group PLC 2020 Year-end Results
Classification: Confidential Arbuthnot Banking Group PLC 2020 Year end Results ARBUTHNOT BANKING GROUP PLC 2020 Year-end Results 24 March 2021 Bank of the Year CityAM Awards 2019
Slide 2: Highlights
Classification: Confidential Arbuthnot Banking Group PLC 2020 Year end Results Highlights Strategy & group overview Financial review Appendix 2
Slide 3: Key Messages
Classification: Confidential Arbuthnot Banking Group PLC 2020 Year end Results Key Messages Financial Key Indicators • Reported loss before tax of £1.1m however the business broke even when acquisition costs are excluded • Gross yield of 4.7% • Strong performance from new lending businesses drove a
Slide 4: Financial Highlights and KPIs
Classification: Confidential Arbuthnot Banking Group PLC 2020 Year end Results Financial Highlights and KPIs Key Performance Indicator FY20 FY19 % Change Commentary Net revenue margin 4.1% 4.5% (7%) • Net margin reduction to 4.1% driven by Total cost income ratio 99% 97% 2% reduction in Bank of Engl
Slide 5: Strategy & group overview
Classification: Confidential Arbuthnot Banking Group PLC 2020 Year end Results Highlights Strategy & group overview Financial review Appendix 5
Slide 6: Group Strategic Overview
Classification: Confidential Arbuthnot Banking Group PLC 2020 Year end Results Group Strategic Overview Business model Relationship led Transactional Banking Core banking Investment Management Higher rate lending deposits Wealth Planning Cost of funding Gross interest yield (FY20) (FY20) 0.54% 4.7%
Slide 7: Strategic “Future State” vision
Classification: Confidential Arbuthnot Banking Group PLC 2020 Year end Results Strategic “Future State” vision Risk Return on Risk Cost : Income Division Loans £ bn Weighted Capital £m Gross Margin Capital Weighting Ratio Assets £m Employed Core Bank 1.5 40% 600 76 3-5% 85% 14% Renaissance Asset Fin
Slide 8: Banking Overview
Classification: Confidential Arbuthnot Banking Group PLC 2020 Year end Results Banking Overview Overview of the business Banking Loan book growth and gross interest yield Private Banking Private Bank since 1833, focussed on low risk sustainable growth. £1,200m Loan book Gross Interest Yield 7.0% Pro
Slide 9: Banking Overview
Classification: Confidential Arbuthnot Banking Group PLC 2020 Year end Results Banking Overview Overview of the business Deposit growth and interest expense rate Commercial Banking Founded in 2015. Provide a high quality banking service to our clients, typically owner-managed, independent businesses
Slide 10: Renaissance Asset Finance (RAF)
Classification: Confidential Arbuthnot Banking Group PLC 2020 Year end Results Renaissance Asset Finance (RAF) Overview of the business RAF Loan book growth A specialist asset finance provider, Acquired in April 2017, the subsidiary is based in Basildon with a making funding facilities available, bo
Slide 11: Arbuthnot Commercial Asset Based Lending (ACABL)
Classification: Confidential Arbuthnot Banking Group PLC 2020 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 22 staf
Slide 12: Arbuthnot Specialist Finance Limited (ASFL)
Classification: Confidential Arbuthnot Banking Group PLC 2020 Year end Results Arbuthnot Specialist Finance Limited (ASFL) Overview of the business Business Model / Strategy ASFL acts as a specialist lender operating in the niche markets Short term lending secured against properties in England, Wale
Slide 13: Financial review
Classification: Confidential Arbuthnot Banking Group PLC 2020 Year end Results Highlights Strategy & group overview Financial review Appendix 13
Slide 14: Summarised Income Statement & Balance Sheet
Classification: Confidential Arbuthnot Banking Group PLC 2020 Year end Results Summarised Income Statement & Balance Sheet Income statement (£m) Commentary Financial Year 2020 Financial Year 2019 % Change Interest income 75.08 76.87 (2%) • Interest income down 2% due the BoE base Interest expense (1
Slide 15: Profit Before Tax Progression in FY20
Classification: Confidential Arbuthnot Banking Group PLC 2020 Year end Results Profit Before Tax Progression in FY20 25,000 Commentary 1,807 • 2020 PBT (£1.1m), down from £7.0m in 2019 • Core lending growth £2.6m [higher year-on- 20,000 year average lending balances] 6,109 10,335 • Incremental subsi
Slide 16: Summary Financials - Operating Segments
Classification: Confidential Arbuthnot Banking Group PLC 2020 Year end Results Summary Financials - Operating Segments Financial Year 2020 Financial Year 2019 % Change Commentary Banking £0.48m £10.21m (95%) • Banking (95%)/(£9.7m) lower due to the Mortgage Portfolios impact of the BoE base rate on
Slide 17: Loan Portfolio Analysis - key metrics
Classification: Confidential Arbuthnot Banking Group PLC 2020 Year end Results Loan Portfolio Analysis - key metrics £349k Average loan amount 89% secured at an average 50% LTV average for the 47% LTV norm - a maximum LTV of 47% Core property book 70% LTV permitted 4.7% Gross interest yield in 4.1%
Slide 18: Loan Book Development in 2020
Classification: Confidential Arbuthnot Banking Group PLC 2020 Year end Results Loan Book Development in 2020 Decrease of £11m (0.7%) year on year Commentary FY2020 FY2019 • Banking growth of c£27m 0% 0% 5% 5% • Acquired mortgage portfolio continued pay 6% 6% down £37m Banking • Net zero subsidiary m
Slide 19: Customer Deposit Analysis - key metrics
Classification: Confidential Arbuthnot Banking Group PLC 2020 Year end Results Customer Deposit Analysis - key metrics 19.2 Month 0.46% Average 0.54% FY20 cost £662m Notice £375m Call and £2,365m Average term deposit interest of funding and Time inflows Current Net Flow Customer (original) rate (0.6
Slide 20: Capital Surplus
Classification: Confidential Arbuthnot Banking Group PLC 2020 Year end Results Capital Surplus 100 Commentary 1.6 6.4 90 4.9 1.7 • Total capital position at year end of £218.2m, 1.4 8.6 3.6 1.3 with surplus capital of £84.2m 80 2.7 • CET1 capital ratio at the period end of 15.4% 10.3 70 • Regulatory
Slide 21: Group Summary
Classification: Confidential Arbuthnot Banking Group PLC 2020 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 Co
Slide 22: Appendix
Classification: Confidential Arbuthnot Banking Group PLC 2020 Year end Results Highlights Strategy & group overview Financial review Appendix 22
Slide 23: Substantial Track Record of Value Creation
Classification: Confidential Arbuthnot Banking Group PLC 2020 Year end Results Substantial Track Record of Value Creation Overview Share Price Performance & TSR 3000 ̵ Market capitalisation of £150 million1 ̵ £77m cumulatively returned to shareholders 2500 since 2014 2000 ̵ A special dividend of 21
Slide 24: Disclaimer
Classification: Confidential Arbuthnot Banking Group PLC 2020 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 solicitati
Slide 25: Thank You
Classification: Confidential Arbuthnot Banking Group PLC 2020 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.c
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