Arbuthnot Banking group, made up of Arbuthnot Private Bank and Secure Trust Bank reported 64 per cent growth in underlying profits to £7.2 million in the first half of the year.
Arbuthnot plans to break into the small and medium-sized enterprise lending market by targeting cash-hungry businesses who have been turned down for funding from the big banks.
The private bank’s loans increased 8.5 per cent to £307 million, while its pre-tax profits hit £1 million.
The group’s pre-tax profit for the six months ending June 30 was £2 million, compared to £10.8 million in the same period last year. A figure much lower as a result of the costs related to an employee share scheme and due to the acquisition of Everyday Loans last year.
Retail lender Secure Trust Bank saw lending rise 40.3 per cent year-on-year to £366 million, generating a pre-tax profit of £6.2 million.
The bank expects to draw down £10m to £20m from the FLS today, launching its entry into the small business lending market.
And it is setting up another loan referral programme with a major high street bank, where borrowers that do not meet the larger firm’s criteria are referred to Secure Trust.
The move is part of a longer term strategy to broaden its lending portfolio.
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