PRESS RELEASE
For Immediate Release
18 December 2014
ARBUTHNOT BANKING GROUP PLC
Mortgage Portfolio Acquisition
Arbuthnot Banking Group PLC ("Arbuthnot" or the "Group") today announces that its subsidiary Arbuthnot Latham ("AL" or "the Bank") has completed the purchase of a residential mortgage portfolio.
The mortgages are being acquired from the administrators of the Dunfermline Building Society ("DBS"). The portfolio has been in run off since 2009 and was previously acquired by DBS from other originators principally GMAC with the balances being geographically distributed around the UK.
Based on balances at 31 October 2014, the portfolio consists of loans totalling £117.6 MN of which 58 per cent are residential buy to let and the remaining are owner occupied. The average loan to value is 72 per cent with a current expected yield of approximately 4 per cent.
The consideration of £106.3 MN has been satisfied by cash from the Group's resources.
Having regard to the recent developments in the Sterling Monetary Framework, including the Funding for Lending Scheme ("FLS"), this transaction will further diversify AL's asset base which may be offered as collateral. This should enable the Bank to use more sophisticated and stable mechanisms, with which to manage its liquidity.
Enquiries:
Arbuthnot Banking Group Henry Angest, Chairman and Chief Executive Andrew Salmon, Group Chief Operating Officer James Cobb, Group Finance Director David Marshall, Director of Communications |
020 7012 2400 |
Canaccord Genuity Ltd (Nominated Advisor) Sunil Duggal |
020 7665 4500 |
Numis Securities Ltd (Broker) Chris Wilkinson Mark Lander |
020 7260 1000 |
Bell Pottinger (Financial PR) Ben Woodford Zoë Pocock |
020 3772 2500 |
