A pair of business disposals produced a surge in headline profits for the UK lender. Its private banking arm also reported stronger profits and client assets.

UK-listed Arbuthnot Banking Group today reported a profit of £225 million ($297 million) in the first six months of 2016, surging from £12.7 million a year ago as a result of completing two business disposals.

Underlying profit before tax was £2.0 million, up from £1.4 million a year earlier, the group, parent of private banking operation Arbuthnot Latham, said in a statement.

Earnings per share were £11.11 per share, up from £0.44 a year ago.

The sale of the Everyday Loans business produced a gain on sale of £117 million, explaining much of the jump in the headline profit figure. The placement of a 33 per cent share stake in Secure Trust Bank generated a gain of £100 million, it said.

Private bank
Arbuthnot Latham reported a profit before tax for the half year of £4.5 million (H1 2015: £3.7 million), which includes the impact of the investment programme that commenced during 2015, with the building out of the commercial banking business and the banking infrastructure upgrade project. This offset a 13 per cent increase in revenues.

Customer assets rose 14 per cent to £657 million (H1 2015: £584 million), while deposits increased by 23 per cent. Assets under management increased to £797 million (H1 2015: £701 million).