ARBUTHNOT banking group reported rising profits yesterday as it took advantage of big banks cutting back to boost lending.
The group, comprised of a private banking arm and the Secure Trust Bank, saw pre-tax profits jump £12.6m for 2012, up from £5.1m in 2011.
Private bank Arbuthnot Latham recorded modest profit growth from £2m to £2.1m, on the back of a 21 per cent rise in customer lending and a 17.5 per cent rise in deposits.
Secure Trust Bank’s profits soared from £9.1m to £17.3m, with lending balances up 92 per cent to £297.6m.
Part of that growth came from the acquisition of Everyday Loans part way through the year.
“Banking is far less competitive than it was five or six years ago. Many grew lending too fast in the boom which was not a very prudent thing to do,” group finance director James Cobb told City A.M. yesterday.
“We are growing as other lenders shrink, allowing us more choice in who we lend to and so a better quality of loans – credit quality is improving.”