Trading Statement

Arbuthnot Banking Group PLC
11 January 2007



                           ARBUTHNOT BANKING GROUP PLC

                          PRE CLOSE TRADING STATEMENT


Arbuthnot Banking Group PLC ('the Group') is today issuing a trading update
ahead of the close period relating to the year ended 31 December 2006.

Investment Banking

Following on from the profits reported at the time of publication of the Group's
interim results in September 2006, the Group's investment banking subsidiary,
Arbuthnot Securities, continued to trade in line with the improved first half
performance despite market conditions softening over the summer and the AIM
market in particular entering a more restrained phase. Profitability for the
year is anticipated to be well ahead of last year.

Private Banking

The investment in the Private Banking franchise continued in the second half of
2006 in building the relationship management expertise and providing a base for
future growth. Overall, divisional profitability for the year ending December
2006 is anticipated to be in line with the previous year.

Retail Banking

Trading has continued to soften in the second half of 2006 due to a decline in
customer numbers of the 'One Bill' account and a reduction in the amount of new
unsecured lending as a result of the changing credit environment.

Since joining as Chief Executive in September 2006, Gary Jennison has recruited
a new team consisting of a Chief Operating Officer, Sales and Marketing Director
and Finance Director. They have embarked on a detailed review of the business,
looking at all aspects of performance.

In 2004, Secure Trust Bank entered into an arrangement to provide motor
insurance broking services to customers of Yes Car Credit that was terminated in
the second half of 2005. It has now become apparent that debts totalling £2.9
million relating to this business may not be recoverable and accordingly full
provision will be made in the 2006 results.

Overall impact on Group Results

As announced on 12 December 2006, the Group entered into a sale and leaseback on
its London Headquarters, realising a pre tax profit of £11.0 million. The Group
additionally announced exceptional items of £0.9 million restructuring costs in
the second half of 2006.

The Board expects profit before tax and exceptional items for the year ended 31
December 2006 to be approximately £8 million. After allowing for the exceptional
items referred to above, the Board anticipates a pre tax profit of approximately
£14.5 million for the year ended 31 December 2006.


Press enquiries:

Arbuthnot Banking Group PLC                                Tel: [phone]
Henry Angest, Chairman and Chief Executive
Andrew Salmon, Chief Operating Officer
Paul Sheriff, Group Finance Director

Maitland                                                   Tel: [phone]
Emma Burdett
Lydia Pretzlik





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