Arbuthnot Banking Group PLC Sale of Residential Mortgage Portfolio (5676Q)

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RNS Number : 5676Q

Arbuthnot Banking Group PLC

26 February 2021

Arbuthnot Banking Group PLC

Sale of Residential Mortgage Portfolio

Arbuthnot Banking Group PLC ('Arbuthnot' or 'the Group') today announces that it has exchanged and completed on an agreement with 5D Finance Limited, a member of the OneSavings Bank plc ("OSB") group, to sell a residential mortgage portfolio known as the Tay mortgage portfolio ("the Portfolio")

The portfolio sold consists of the remaining balances from the acquisition made in December 2014, when the Group purchased the loans from the administrators of the Dunfermline Building Society.

As at 31 January 2021, the customer loan balances totalled GBP54.9m and had a blended yield of approximately 2.95%.

The consideration of approximately GBP53.8m received by the Group will be in cash and will represent 97.9% of the outstanding loans. At the same time the Group expects to release as a credit to the profit and loss account the remaining original discount on acquisition which totalled GBP3.4m as at 31 January 2021.

As a result of the deal, the economic benefit of the portfolio will have passed to OSB on 1 February 2021. Beneficial ownership of the Portfolio passed on completion of the deal and legal title will pass approximately three months after the completion of the deal.

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU No. 596/2014) which is part of UK law by virtue of the European Union (withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

The Directors of the Company accept responsibility for the contents of this announcement.

Enquiries:

Arbuthnot Banking Group 0207 012 2400

Sir Henry Angest, Chairman and Chief Executive

Andrew Salmon, Group Chief Operating Officer

James Cobb, Group Finance Director

Grant Thornton UK LLP (Nominated Adviser and

AQSE Exchange Corporate Adviser) 020 7383 5100

Colin Aaronson

Samantha Harrison

Seamus Fricker

Numis Securities Ltd (Joint Broker)

0207 260 1000

Stephen Westgate

Shore Capital (Joint Broker) 020 7408 4090

Hugh Morgan

Daniel Bush

Maitland/AMO (Financial PR) 020 7379 5151

Neil Bennett

Sam Cartwright

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February 26, 2021 11:38 ET (16:38 GMT)