AIM:ARBB

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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 Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

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

Stable Share Price: ARBB's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

12.6%

ARBB

15.6%

GB Banks

5.5%

GB Market


1 Year Return

-35.1%

ARBB

-34.7%

GB Banks

-9.2%

GB Market

Return vs Industry: ARBB exceeded the UK Banks industry which returned -37.3% over the past year.

Return vs Market: ARBB underperformed the UK Market which returned -10% over the past year.


Shareholder returns

ARBBIndustryMarket
7 Day12.6%15.6%5.5%
30 Day1.8%11.0%10.8%
90 Day-15.5%-15.5%-0.4%
1 Year-34.3%-35.1%-32.8%-34.7%-4.8%-9.2%
3 Year-36.1%-39.8%-34.4%-41.8%-0.8%-12.9%
5 Year-21.3%-42.5%-32.8%-45.3%18.1%-8.2%

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?

21.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ARBB (£8.7) is trading above our estimate of fair value (£1.84)

Significantly Below Fair Value: ARBB is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ARBB is poor value based on its PE Ratio (21.1x) compared to the Banks industry average (6x).

PE vs Market: ARBB is poor value based on its PE Ratio (21.1x) compared to the UK market (15x).


Price to Earnings Growth Ratio

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 (0.6x) compared to the GB Banks industry average (0.5x).


Next Steps

Future Growth

How is Arbuthnot Banking Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

29.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARBB's forecast earnings growth (29.8% per year) is above the savings rate (1.2%).

Earnings vs Market: ARBB's earnings (29.8% per year) are forecast to grow faster than the UK market (21.2% per year).

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

Revenue vs Market: ARBB's revenue (4.3% per year) is forecast to grow faster than the UK market (3.6% per year).

High Growth Revenue: ARBB's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARBB's Return on Equity is forecast to be low in 3 years time (7%).


Next Steps

Past Performance

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

41.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARBB has a large one-off gain of £1.5M impacting its December 31 2019 financial results.

Growing Profit Margin: ARBB's current net profit margins (8.6%) are lower than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: ARBB has become profitable over the past 5 years, growing earnings by 41.6% per year.

Accelerating Growth: ARBB's earnings growth over the past year (9.1%) is below its 5-year average (41.6% per year).

Earnings vs Industry: ARBB earnings growth over the past year (9.1%) underperformed the Banks industry 9.1%.


Return on Equity

High ROE: ARBB's Return on Equity (3%) is considered low.


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


Financial Institutions Analysis

Asset Level: ARBB's Assets to Equity ratio (12.5x) is moderate.

Allowance for Bad Loans: ARBB has a low allowance for bad loans (15%).

Low Risk Liabilities: 97% of ARBB's liabilities are made up of primarily low risk sources of funding.

Loan Level: ARBB has an appropriate level of Loans to Assets ratio (62%).

Low Risk Deposits: ARBB's Loans to Deposits ratio (69%) is appropriate.

Level of Bad Loans: ARBB has an appropriate level of bad loans (1.9%).


Next Steps

Dividend

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

4.60%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ARBB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ARBB's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ARBB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ARBB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ARBB is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ARBB's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.2yrs

Average board tenure


CEO

Henry Angest (79yo)

no data

Tenure

UK£1,293,000

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 and Arbuthnot Securities Limited. H ...


CEO Compensation Analysis

Compensation vs Market: Henry's total compensation ($USD1.64M) is above average for companies of similar size in the UK market ($USD727.02K).

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


Board Members

NamePositionTenureCompensationOwnership
Henry Angest
Chairman & CEOno dataUK£1.29m48.93% £64.2m
James Cobb
Group Finance Director & Director11.58yrsUK£1.25m0.040% £52.4k
Andrew Salmon
COO, Head of Business Development & Director16.25yrsUK£1.86m0.34% £451.8k
Christopher Meyer
Independent Non-Executive Director12.67yrsUK£60.00kno data
Alan Colin Yarrow
Independent Non-Executive Director4yrsUK£70.00kno data
Nigel Patrick Boardman
Independent Non-Executive Director1yrUK£35.00k0.033% £43.9k
Ian Dewar
Independent Non-Executive Director4.83yrsUK£75.00kno data

8.2yrs

Average Tenure

66yo

Average Age

Experienced Board: ARBB's board of directors are considered experienced (8.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ARBB insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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£131.281m
  • Shares outstanding: 15.02m
  • 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 overdrafts, as well as foreign trade services. It also provides wealth structuring, tax mitigation, estate preservation, and retirement planning services. In addition, the company offers insurance, asset finance, property development, and investment management services, as well as invests in properties. Arbuthnot Banking Group PLC was founded in 1833 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 20:42
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.