Arbuthnot set to gain clients in pension reform
ARBUTHNOT Banking Group increased customer numbers across its retail finance operations in 2013, the group revealed yesterday as it published its annual results.
And the bank expects more clients to use its financial planning services in wake of the shake-up of pension rules in this week’s budget.
The lending group – made up predominantly of private bank Arbuthnot Latham and consumer finance lender Secure Trust Bank – reported pre-tax profits of £15.7m, up 24.6 per cent on the year.
Its operating income increased 52.7 per cent to £100m, while operating expenses increased 38.8 per cent.
By unit, Secure Trust made an underlying profit of £25.2m, up 51 per cent on the year. And it increased its customer numbers by the same amount to 350,861.
‘We have benefited in this recovery. We provide a lot of motor finance for instance, where sales have risen in the buoyant recovery,” Secure Trust’s chief Paul Lynam told City A.M.
“Now we are timing our entry into the SME space, to coincide with the economic recovery and an uptick in business investment which those firms will need to fund.”
Meanwhile the private banking arm saw its pre-tax profits rocket from £2.1m in 2012 to £7.7m in 2013.
However, that figure was boosted by the profitable sale and leaseback of its headquarters.
Arbuthnot Latham has also opened a Dubai office and agreed a custody arrangement with Swiss private bank Picet to expand its international operations.