Hardman & Co Research on Arbuthnot Banking Group: 1H'24 Highlights

Hardman & Co Research has released its report on Arbuthnot Banking Group (ARBB) for the first half of 2024. The results illustrate the group's ongoing efforts to optimise its franchise value. In 2023, ABG benefited significantly from its relationship deposit franchise amid rising rates, allowing it to offer competitive products while widening margins.

However, profits for 1H'24 decreased by £6 million, a 21% drop compared to 1H'23, due to the maturation of low-cost fixed deposits rolling into higher-rate products. Mitigating factors included substantial growth in specialist lending, a surge in lower-cost SME deposits, and an increase in high-quality debt securities, which replaced placements at the Bank of England.

For further details, the full report is available via the link provided in the announcement.