Arbuthnot poised to trump 2009 forecasts

7th Jan 2010 08:02

Shares in banking and wealth management group Arbuthnot Banking rose after it said it expects 2009 pre-tax profit to come in ahead of market expectations as improved market condition continued into the fourth quarter. Arbuthnot, which is the holding company for three businesses, said its two banks remain highly liquid, well funded and well capitalised.Its retail banking unit, Secure Trust Bank performed well, benefiting from the acquisition during the year of the two books of instalment loans. Meanwhile its private banking arm Arbuthnot Latham traded satisfactorily although its full year result will be hit by the start-up costs associated with Gilliat Financial Solutions. The group said its investment banking business, Arbuthnot Securities, continued to trade profitably in the fourth quarter with the result that the second half will show a profit and a significant turnaround from the first half.