Shares in Arbuthnot (ARBB) enjoyed a 4 per cent increase after the challenger bank announced it would be paying a £3 special dividend, following a solid first-half trading performance. The bank generated pre-tax profit of £225m during the six months, after taking into account the proceeds from the sale of the majority of its stake in Secure Trust Bank (STB) in June.
Private banking business Arbuthnot Latham is taking on new premises in Manchester to cover the north west and expects to have a further six commercial bankers in place by early next year. Meanwhile, management says its commercial bank continues to develop at a good rate. However, Arbuthnot Latham has experienced a short-term fall in its net interest margin following the further reduction in the base rate.
