Trading Statement

Arbuthnot Banking Group PLC 11 January 2008 ARBUTHNOT BANKING GROUP PLC PRE CLOSE TRADING STATEMENT Ahead of entering its close period, Arbuthnot Banking Group issues the following update for the year ended 31 December 2007. Arbuthnot Banking Group is estimating Group pre tax profits of approximately £8.5m for 2007, in line with market expectations. This compares with pre tax and exceptional profits of £8.2m in 2006. The investment banking business, Arbuthnot Securities, maintained its first half performance in the second half despite the deterioration in market conditions. This excellent performance demonstrates the momentum that the business has built up over the last three years. Pre tax profits are estimated at £4.1m in the second half, bringing the total for 2007 to approximately £8.1m representing an approximate 60% increase on 2006. During the year Arbuthnot Securities acted on a total of 49 transactions. These included 29 fund raisings (including 5 IPOs) which raised a total of £672m for clients. In addition, Arbuthnot Securities advised on 20 M&A deals which had a combined value of approximately £1bn. Notwithstanding the challenging market, the business successfully completed all the fund raisings it embarked upon in 2007. At the end of the year the retained corporate client list had grown to 85 with an average market capitalisation of £130m. In private banking Arbuthnot Latham's pre tax profits are estimated at £0.1m for the second half, bringing the 2007 total to approximately £1.5m. The first half performance reflected significant fees in transaction related services which were not repeated in the second half. Market conditions in the wholesale money markets have had little impact on Arbuthnot Latham as the business is well funded through retail deposits in line with the Group's longstanding practice and its substantial banking lines were not utilised in 2007. The investment programme at Secure Trust Bank continues and pre tax profits are estimated at £2.1m for the second half, bringing the total for 2007 to approximately £4.5m. There is a prior year adjustment that relates to the unsecured lending book and which has accumulated over several years. This is likely to result in a downward restatement of retained earnings of approximately £1.1m. As reported in the interim results, the majority of new unsecured lending was outsourced in the first half before the onset of the credit crunch. In summary these results again demonstrate the benefit of the Group's long term and diversified strategic approach. Press enquiries: Arbuthnot Banking Group PLC Tel: 020 70122400 Henry Angest, Chairman and Chief Executive Andrew Salmon, Chief Operating Officer Paul Sheriff, Group Finance Director Maitland Tel: 020 73795151 Lydia Pretzlik Richard Farnsworth This information is provided by RNS The company news service from the London Stock Exchange
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