AIM:ARBB

Stock Analysis Report

Arbuthnot Banking Group

Executive Summary

Arbuthnot Banking Group PLC, together with its subsidiaries, provides private and commercial banking products and services in the United Kingdom.

Snowflake

Fundamentals

Established dividend payer with reasonable growth potential.

Share Price & News

How has Arbuthnot Banking Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

10.0%

ARBB

6.9%

GB Banks

1.9%

GB Market


1 Year Return

-15.4%

ARBB

-2.2%

GB Banks

2.4%

GB Market

Return vs Industry: ARBB underperformed the UK Banks industry which returned -2.2% over the past year.

Return vs Market: ARBB underperformed the UK Market which returned 2.4% over the past year.


Shareholder returns

ARBBIndustryMarket
7 Day10.0%6.9%1.9%
30 Day-1.3%1.9%-1.1%
90 Day-15.1%-4.4%-1.8%
1 Year-13.1%-15.4%3.9%-2.2%7.4%2.4%
3 Year-11.9%-18.1%12.7%-2.1%18.2%3.7%
5 Year36.4%-1.3%1.8%-18.3%35.7%6.1%

Price Volatility Vs. Market

How volatile is Arbuthnot Banking Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Arbuthnot Banking Group undervalued compared to its fair value and its price relative to the market?

23.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate ARBB's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate ARBB's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ARBB is poor value based on its PE Ratio (23.8x) compared to the Banks industry average (9.1x).

PE vs Market: ARBB is poor value based on its PE Ratio (23.8x) compared to the UK market (16.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: ARBB is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: ARBB is overvalued based on its PB Ratio (0.8x) compared to the GB Banks industry average (0.8x).


Next Steps

Future Growth

How is Arbuthnot Banking Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

34.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARBB's forecast earnings growth (34.8% per year) is above the savings rate (1.2%).

Earnings vs Market: ARBB's earnings (34.8% per year) are forecast to grow faster than the UK market (12.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ARBB's revenue (14.9% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: ARBB's revenue (14.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ARBB's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

How has Arbuthnot Banking Group performed over the past 5 years?

12.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ARBB's earnings have grown by 12.8% per year over the past 5 years.

Accelerating Growth: ARBB's earnings growth over the past year (1216.4%) exceeds its 5-year average (12.8% per year).

Earnings vs Industry: ARBB earnings growth over the past year (1216.4%) exceeded the Banks industry 29.6%.


Return on Equity

High ROE: ARBB's Return on Equity (3.5%) is considered low.


Return on Assets

ROA vs Industry: ARBB's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate ARBB's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Arbuthnot Banking Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ARBB has a low level of unsold assets or inventory.

Debt Coverage by Assets: ARBB's debt is covered by short term assets (assets are 24.789460x debt).


Financial Institutions Analysis

Asset Level: ARBB's level of assets compared to its equity is moderate.

Allowance for Bad Loans: ARBB has a low allowance for bad loans.

Low Risk Liabilities: ARBB's liabilities are made up of primarily low risk sources of funding.

Loan Level: ARBB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ARBB's loans are broadly funded by customer deposits.

Level of Bad Loans: ARBB has a high level of bad loans (3.01%)


Next Steps

Dividend

What is Arbuthnot Banking Group's current dividend yield, its reliability and sustainability?

3.03%

Current Dividend Yield


Dividend Yield vs Market

company3.0%marketbottom25%2.0%markettop25%5.4%industryaverage5.7%forecastin3Years3.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ARBB's dividend (3.03%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: ARBB's dividend (3.03%) is low compared to the top 25% of dividend payers in the UK market (5.42%).

Stable Dividend: ARBB's dividends per share have been stable in the past 10 years.

Growing Dividend: ARBB's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.3%), ARBB's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ARBB's dividends in 3 years are forecast to be well covered by earnings (44.7% payout ratio).


Next Steps

Management

What is the CEO of Arbuthnot Banking Group's salary, the management and board of directors tenure and is there insider trading?

10.3yrs

Average management tenure


CEO

Henry Angest (79yo)

0yrs

Tenure

UK£1,279,000

Compensation

Mr. Henry Angest, LLL, Hon.F.UHI serves as the Chief Executive of Arbuthnot Banking Group. Mr. Angest serves as the Non-Executive Chairman of Arbuthnot Banking Group PLC, Arbuthnot Latham & Co Limited and  ...


CEO Compensation Analysis

Compensation vs. Market: Henry's total compensation ($USD1.65M) is about average for companies of similar size in the UK market ($USD646.82K).

Compensation vs Earnings: Henry's compensation has been consistent with company performance over the past year.


Management Age and Tenure

10.3yrs

Average Tenure

58.5yo

Average Age

Experienced Management: ARBB's management team is seasoned and experienced (10.3 years average tenure).


Board Age and Tenure

7.5yrs

Average Tenure

66yo

Average Age

Experienced Board: ARBB's board of directors are considered experienced (7.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Nick Jennings (60yo)

    Group Company Secretary

    • Tenure: 1.3yrs
  • Henry Angest (79yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: UK£1.28m
  • Robert Taylor

    Head of Sales for Arbuthnot Securities Limited and Director of Arbuthnot Securities Limited

    • Tenure: 0yrs
  • Andrew Salmon (57yo)

    COO, Head of Business Development & Director

    • Tenure: 15.6yrs
    • Compensation: UK£1.86m
  • James Cobb (51yo)

    Group Finance Director & Director

    • Tenure: 10.9yrs
    • Compensation: UK£977.00k
  • Adrian Neave

    Head of New Structured Products Distribution Business

    • Tenure: 10.3yrs

Board Members

  • Christopher Meyer (76yo)

    Non-Executive Director

    • Tenure: 12yrs
    • Compensation: UK£60.00k
  • Henry Angest (79yo)

    Chairman & CEO

    • Tenure: 0yrs
    • Compensation: UK£1.28m
  • Alan Colin Yarrow (66yo)

    Independent Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: UK£70.00k
  • Robert Taylor

    Head of Sales for Arbuthnot Securities Limited and Director of Arbuthnot Securities Limited

    • Tenure: 0yrs
  • Andrew Salmon (57yo)

    COO, Head of Business Development & Director

    • Tenure: 15.6yrs
    • Compensation: UK£1.86m
  • Nigel Patrick Boardman (68yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs
  • James Cobb (51yo)

    Group Finance Director & Director

    • Tenure: 10.9yrs
    • Compensation: UK£977.00k
  • Ian Dewar (61yo)

    Independent Non-Executive Director

    • Tenure: 4.2yrs
    • Compensation: UK£75.00k

Company Information

Arbuthnot Banking Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Arbuthnot Banking Group PLC
  • Ticker: ARBB
  • Exchange: AIM
  • Founded: 1833
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: UK£168.475m
  • Shares outstanding: 15.03m
  • Website: https://www.arbuthnotgroup.com

Number of Employees


Location

  • Arbuthnot Banking Group PLC
  • Arbuthnot House
  • 7 Wilson Street
  • London
  • Greater London
  • EC2M 2SN
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARBBAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPJan 1992

Biography

Arbuthnot Banking Group PLC, together with its subsidiaries, provides private and commercial banking products and services in the United Kingdom. The company offers a range of bank accounts, loans, and ove ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 20:34
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.