Arbuthnot Banking Group PLC Directorate Change (1913X)

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RNS Number : 1913X

Arbuthnot Banking Group PLC

08 August 2018

8 August 2018

For immediate release

ARBUTHNOT BANKING GROUP

Board Changes

Arbuthnot Banking Group PLC ("ABG" or "the Group") announces the retirement of Paul Lynam as a Director of ABG with immediate effect.

Paul has been a Director of ABG since 2010 when he joined the Group to be Chief Executive Office of Secure Trust Bank PLC ("STB"). During this time STB and the Group have enjoyed considerable success. He led STB to be the first bank to IPO following the financial crisis. STB initially obtained a quotation on AIM and has subsequently secured a premium listing on the main market.

In recent times, the Group has been seeking to build a Commercial Banking business, has acquired Renaissance Asset Finance Ltd ("RAF") and launched an Asset Based Finance business. These businesses have the potential to represent competition for STB. Therefore, in order to remove the risk of conflicts of interest arising at some time in the future, Paul has decided to step down from the Board of ABG with immediate effect.

Also as announced by STB, Sir Henry Angest and Andrew Salmon have stepped down from the Board of STB for the same reason.

As a result of Sir Henry and Andrew leaving the Board of STB, it is expected that ABG will no longer be seen to have significant influence over STB. As highlighted in the Group's 2017 annual accounts and the 2018 interim results, it is expected that the investment will be accounted for as a financial asset at fair value and no longer be treated as an associate. The Group expects this will therefore result in the investment in an associate being derecognised in its accounts. This is expected to result in a non-cash loss, given that as at 8 August 2018 the Group's holding of 3,444,538 shares in STB were held on the balance sheet at GBP24.53 each.

The resultant loss arising from the de-recognition of the associate is expected to be presented as a discontinued operation in ABG's 2018 annual accounts along with the associate income recorded to 8 August 2018. Going forward the Group will hold the remaining shares in STB as a "financial investment" with changes in the market value being recorded in other comprehensive income. The dividend income will be shown as other income. The Group remains a supportive shareholder of STB.

De-recognition of the associate will have no material impact on the Group's capital surplus available for future growth.

Sir Henry Angest, Chairman and CEO of ABG commenting on the resignation of Paul Lynam from the Board said "Paul has been a Director of ABG for over 7 years and has achieved a lot during his time, both in the role of a Group Director and as CEO of STB. We are grateful for the significant contribution he has made and wish him well as he continues in his role as CEO of STB. We will miss his straightforward and forthright advice."

ENQUIRIES:

 
                            0207 012 
 Arbuthnot Banking Group     2400 
 

Sir Henry Angest, Chairman and Chief Executive

Andrew Salmon, Group Chief Operating Officer

James Cobb, Group Finance Director

 
 Stifel Nicolaus Europe Ltd trading as KBW    0207 710 
  (Nomad and Joint Broker)                     7600 
 

Robin Mann

Gareth Hunt

Stewart Wallace

 
                                        0207 260 
 Numis Securities Ltd (Joint Broker)     1000 
 

Chris Wilkinson

Stephen Westgate

 
                            0207 379 
 Maitland (Financial PR)     5151 
 

Neil Bennett

Jais Mehaji

Sam Cartwright

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August 08, 2018 04:48 ET (08:48 GMT)