Arbuthnot Banking - Mortgage portfolio acquisition London Stock Exchange
RNS Number : 2201A
Arbuthnot Banking Group PLC
18 December 2014



For Immediate Release


18 December 2014


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.



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


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