Arbuthnot Latham, the private banking unit of Arbuthnot Banking Group, has reported pre-tax profit of £11m for the year ended 31 December 2017, a jump of 21% compared to £9.1m in the previous year.
Operating income at the division was £54.9m, a 31% surge from £41.8m last year. Operating expenses increased 29% year-on-year to £47.4m.
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The private bank’s assets under management were £1.04bn as at 31 December 2017, versus £919.8m a year earlier.
Overall, Arbuthnot Banking Group’s pre-tax profit for the year ended 31 December 2017 was £7m, compared to £0.2m in 2016.
Arbuthnot Banking Group chairman and CEO Sir Henry Angest said: “The Group had a good year, with profits increasing substantially, supported by the deployment of capital into the business. Arbuthnot Latham reached a creditable milestone of surpassing £1bn in its key business metrics: Customer Loans, Customer Deposits and Assets under Management.
“With a new banking system successfully installed, strong capital and a good liquidity surplus, the Group is well set for further growth.”
In its annual results, the private bank also unveiled plans to launch an asset based lending business, which will be managed by a seven-member team based in Gatwick.
In addition, it also intends to introduce a commercial property investment fund for professional investors.
“These are new start-up ventures that in time should make strong contributions to the Group, but will require a degree of initial investment,” Angest stated.
