Arbuthnot profits are flat as it warns of tough year

BOUTIQUE lender Arbuthnot Banking yesterday posted flat profits for last year and cautioned on difficult market conditions for the year ahead.

The group, one of the oldest independent banks in London, posted pre-tax profits of £5.1m.

Arbuthnot’s retail arm posted pre-tax profits of £8.5m, down from £10.2m a year earlier – although it saw underlying profits up 19 per cent after one off items.

Its investment division hit pre-tax profits of £1m, after a £0.1m loss a year earlier, boosted by 16 corporate transactions.

However, the bank warned market volatility, driven by tension in the Middle East and the disaster in Japan, could hit financial services firms.

“There does seem to be a never ending stream of uncertainties. From the Middle East and Japan to the sovereign debt crisis. This is making the markets more difficult and that will have an effect.”