Arbuthnot Banking 2022 Pretax Profit Rose on BoE's Rate Increases

By Christian Moess Laursen

Arbuthnot Banking Group PLC said Thursday that its pretax profit and net interest income rose significantly in 2022 thanks to the Bank of England's rate increases, which are expected to further boost revenue in 2023.

The private and commercial bank said its pretax profit rose to 20.0 million pounds ($24.6 million) in 2022 from GBP4.6 million in 2021, helped mainly by the increases of the Bank of England's base rate during the year.

Net interest income increased to GBP99.1 million from GBP64.1 million.

The bank's assets under management decreased slightly to GBP1.33 billion from GBP1.36 billion, despite strong gross inflows of GBP209 million, representing 16% of assets under management at the start of the year, and an increase of 21% on year.

However, market turbulence from the war in Ukraine, along with domestic inflationary pressure resulted in adverse market performance, offsetting the net inflows during the year, the bank said.

The bank's CET1 ratio as of Dec. 31 was 11.6% compared with 12.3% a year prior.

Looking ahead, the bank said revenue will benefit from further rate increases in 2023, but that the cost-of-living crisis will have an impact on the bank's cost base and the ability of borrowers to maintain payments of loan facilities.

Arbuthnot said its board is recommending a final dividend of 25 pence a share, which is an increase from 22 pence a share in 2021.

Write to Christian Moess Laursen at [e-mail]

(END) Dow Jones Newswires

March 30, 2023 02:41 ET (06:41 GMT)

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