With its long-term track record, Arbuthnot Banking Group (ARBB) places great emphasis on stability and experience and has also been adroit in taking opportunities that emerged in the post-financial crisis environment. The acquisition and recent sale of Everyday Loans Group has provided scope for additional organic loan growth at both Arbuthnot Latham and 51.9%-owned Secure Trust Bank (STB). While near-term returns on equity will be diluted by excess capital, successful development of loan books should underpin a stronger valuation.
