Pre-Close Period Update

Arbuthnot Banking Group PLC 18 January 2006 ARBUTHNOT BANKING GROUP PLC Pre-Close Period Update Arbuthnot Banking Group PLC ('the Group') is today issuing a trading update ahead of the close period relating to the year ended 31 December 2005. Building on the turnaround indicated at the time of the publication of the Group's interim results in September 2005, the performance of the Group's investment banking subsidiary, Arbuthnot Securities, has been particularly encouraging during the final months of 2005. At the same time, the retail banking division, Secure Trust Bank, has continued to face a challenging consumer lending market. Taking these factors into account, and particularly the positive results in Arbuthnot Securities, the Board now expects on balance that the Group's profit on continuing activities before tax and exceptional gains for the year ended 31 December 2005 will exceed brokers' current forecasts. However, the higher than expected proportionate contribution from Arbuthnot Securities to the overall result also means that there will now be a minority interest relating to the proportion of the share capital of Arbuthnot Securities held by that company's employees via a Long Term Incentive Plan. Allowing for this, the Board expects earnings per share on continuing activities before exceptional gains to be broadly in line with market expectations. 18 January 2006 Enquiries Arbuthnot Banking Group PLC: Henry Angest, Chairman and Chief Executive Tel: 020 7012 2400 Stephen Lockley, Group Finance Director Tel: 020 7012 2055 Andrew Salmon, Chief Operating Officer Tel: 020 7012 2424 College Hill: Tony Friend Tel: 020 7457 2020 Richard Pearson Tel: 020 7457 2020 This information is provided by RNS The company news service from the London Stock Exchange