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Arbuthnot focused on niches
Tue, 07 Feb, 2012
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Arbuthnot focused on niches
Wed, 4 Aug 2010, 15:23:00
Niche retail bank <b>Arbuthnot</b> posted sharply higher interim profits as its securities business swung £1.8m into the black. Overall, profits rose to £2.3m in the half year to June, from £0.7m last time. The firm's securities arm, which is the second largest nominated adviser on AIM, recovered from a loss of £1.3m to a profit of £0.5m. Retail bank Secure Trust also did well, lifting profits to £4.6m from £4.1m. Private banking was the weak spot, with its contribution down from £0.7m to £0.1m, but this included start-up costs of £400,000 for a new structured product business and a £200,000 investment write-off. The group, which is solely funded by retail deposits, is focusing on highly defined niches, such as bike and musical instrument shops, where larger lenders don't compete. Arbuthnot adds that its strong relationships in its private bank arm and new business areas, such as accounts for customers of debt management firms, will enable it to cope if competition for retail deposits increases as more banks start up. "We have several promising initiatives underway across the group to take advantage of market opportunities. Any outlook statement made at this time must recognise that economic recovery remains fragile and vulnerable to shocks. However, in the absence of adverse economic developments we remain optimistic about the remainder of 2010 and beyond," added chairman Henry Angest. The interim dividend is raised by 0.5p to 11p.
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