Purchase of consumer assets

RNS Number : 8577X

Arbuthnot Banking Group PLC

21 August 2009

 



PURCHASE OF CONSUMER FINANCE ASSETS

Arbuthnot Banking Group plc ('Arbuthnot Banking Group') today announces that its retail banking subsidiary Secure Trust Bank plc ('Secure Trust'), has reached agreement with Citifinancial Europe plc, a subsidiary of Citigroup to purchase a portfolio of personal instalment loans (the 'Loan Portfolio') for a consideration of £21.1 million. The consideration represents a discount to the gross amount receivable under the Loan Portfolio. None of the loans were in arrears as at the effective date of transfer.

The consideration for the transaction will be satisfied in cash on completion. The Loan Portfolio is expected to be immediately accretive to earnings.

During the twelve month period to 31st December 2008 the Loan Portfolio earned an average interest margin (before funding, administration and other costs) of 18.5 per cent. The Loan Portfolio will be serviced using Secure Trust's existing platform.

Enquiries:

Arbuthnot Banking Group PLC		Tel. No: 020 7012 2400
Henry Angest	Chairman and Chief Executive
Andrew Salmon	Chief Operating Officer
James Cobb	Group Finance Director
Hawkpoint Partners Ltd		Tel No: 020 7665 4500
Lawrence Guthrie
Sunil Duggal
Numis Securities Limited		Tel No: 020 7260 1000
Christopher Wilkinson
Mark Lander
Maitland		Tel. No: 020 7379 5151
Emma Burdett
Richard Farnsworth

 

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