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LONDON - Arbuthnot Banking Group PLC provided a trading update on Wednesday, ahead of its Annual General Meeting, revealing a stable loan balance and significant growth in deposits and funds under management.
The bank reported loan balances, including leased assets, at £2,361 million as of April 30, 2025, a slight decrease from both the previous year and the end of 2024. This reflects Arbuthnot’s cautious credit approach amid recent economic uncertainties and trade war threats.
Deposits showed a robust increase, reaching £4,257 million, marking a 3% rise since the end of 2024 and a 17% year-on-year growth. The bank attributed this success to its strategy of attracting profitable, relationship-driven deposits.
Funds under management and administration (FUMA) also grew by 2% since the beginning of the year to £2,250 million, despite volatile equity markets. This represents a 20% increase compared to the same period in 2024.
In response to the uncertain economic backdrop, the Bank of England has cut interest rates twice in 2025, following reductions in the previous year. The bank noted that ongoing inflationary pressures and increases in employers’ National Insurance contributions might limit further rate cuts.
Arbuthnot’s cautious lending strategy has been adjusted in anticipation of the delayed implementation of Basel 3.1 in the UK, as announced by the Prudential (LON:PRU) Regulation Authority. The bank is evaluating the benefits of this regime against the alternative Small Domestic Deposit Takers framework.
The banking division’s relationship-led approach has helped increase core deposits by £124 million in the first four months of 2025, while lending decreased by 2% to £1,515 million as capital is reallocated to higher margin opportunities.
Within wealth management, despite market volatility, the bank has seen a year-on-year growth of 20% in FUMA. Arbuthnot Commercial Asset Based Lending saw a 6% reduction in its loan book, while Renaissance Asset Finance reported a 6% increase, and Asset Alliance experienced a 3% rise in assets available for lease.
This trading update is based on a press release statement and presents the latest financial figures from Arbuthnot Banking Group PLC as it continues to navigate a challenging economic climate.
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