BANKING group Arbuthnot has shelved plans for a consumer finance joint venture because of concerns over the impact of red tape.
Arbuthnot announced plans in July for a JV through Secure Trust Bank (STB), its listed subsidiary in which it retains a 75 per cent stake, as well as an unnamed partner.
It said yesterday: “Despite exhaustive efforts we have been unable to agree a structure which meets the regulatory requirements and falls within our risk appetite.”
In the pre-close statement Arbuthnot said 2011 pre-tax profit from continuing operations would be around £5m after raising £16.5m through the sale of shares in STB.
STB said in a separate announcement that new lending volumes had risen by a third.