Arbuthnot Banking Group, a leading private and commercial bank, has announced a significant increase in pretax profit for the first half of 2023, largely driven by higher interest income.
Impressive Financial Results
For the six months ending June 30, the bank recorded a pretax profit of £26.4 million ($34.5 million), compared to £3.4 million for the same period in the previous year. The underlying pretax profit also saw a substantial rise, reaching £29.3 million, up from £10.7 million.
Net interest income experienced substantial growth as well, amounting to £68.4 million, in contrast to the previous year’s figure of £42.5 million.
Strengthened Balance-Sheet
Arbuthnot Banking Group’s common equity Tier 1 ratio, an essential indicator of balance-sheet strength, stood at 12.2%, an improvement from 11.6% as of December 31.
Dividend Increase
The board has confirmed an interim dividend of 19 pence per share, reflecting an increase from the previous year’s 17 pence.
Future Outlook
While acknowledging the increasing uncertainty in the economic landscape, Arbuthnot remains vigilant about potential credit risks. However, with improved profitability and robust financial strength, the company remains confident in its positioning.
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