Arbuthnot Banking Group continued to expand its lending, deposit and wealth management activities during the first half of 2026, while navigating the effect of lower interest rates on banking income.
Profit before tax for the six months ended 30 June 2026 was £11.0 million, compared with £10.9 million in the same period last year. Earnings per share increased from 42.5p to 49.9p, while the board raised the interim dividend by 9% to 24p per share.
The higher distribution indicates confidence in the group’s capital position and operating outlook, although management remains focused on maintaining discipline across credit, liquidity and capital. Net assets per share increased to 1,712p, from 1,694p at the end of 2025 and 1,649p a year earlier.
A central feature of the period was the continued expansion of the group’s specialist lending operations. Balances in the Specialist Division passed £1 billion for the first time, reaching £1.05 billion at the end of June. This represented an increase of 18% since the end of 2025 and 17% compared with the same point last year.
The expansion gives the group a broader source of lending income at a time when reductions in the Bank of England base rate are placing pressure on returns from traditional banking activities.
Total customer loans, including leased assets, rose to £2.45 billion. This was 9% higher than at the end of 2025 and 6% above the level reported in June 2025. Management said growth had been achieved while retaining a disciplined approach to lending. Customer deposits increased to £4.78 billion, representing growth of 4% during the first half and 8% over the year.
Funds under management and administration also expanded, reaching £3.0 billion. The total was 12% higher than at the end of 2025 and 26% above the previous year’s level, supported by net inflows of £189 million. Arbuthnot also reached its Future State 2 objective of £10 billion in total client balances more than two years ahead of schedule.
Arbuthnot Banking Group PLC (LON:ARBB), operating as Arbuthnot Latham, offers private and commercial banking products and services in the United Kingdom. Established in 1833, Arbuthnot Banking is headquartered in London, United Kingdom.
