We recently talked to the head of commercial and private banking at Arbuthnot Latham, a bank that stresses certain qualities amidst the volatility that has roiled global markets in recent weeks.

When Arbuthnot Banking Group, parent of Arbuthnot Latham, reported its 2024 results earlier this year, showing a rise in deposits and assets under management, it continued a pattern of gains by the UK-listed group.

Arbuthnot Latham argues that being financially robust and profitable is worth stressing to clients, given that volatile times put a premium on a bank with such qualities.

“Clients want to bank with a profitable bank,” Kevin Barrett (main picture), head of commercial and private banking, Arbuthnot Latham, told WealthBriefing in a recent interview. 

He spoke at a time when equity and bond markets have been roiled by wrangles over tariffs. Memories are still quite fresh of how a cluster of lenders, such as Silicon Valley Bank in the US (and its UK-based business), got into trouble two years ago.

“We’ve always led with our business principles, which are all about delivering good outcomes for clients, staff and shareholders,” Barrett said. “The three are interdependent as you cannot look after clients and staff without being a profitable, successful bank, and sustained profit only comes from doing the first well.”

Barrett responded to how, as suggested by WealthBriefing, banks appear to be reluctant to make a big deal of their profits or at least not to overly stress the point.  

Growth by the numbers
This bank is one of the fastest growing of its kind in the UK, doubling in size in the past five years. In the Arbuthnot Banking Group figures, it said funds under management and administration (FuMA) increased by 30 per cent to £2.21 billion ($2.93 billion, versus £1.71 billion in 2023), driven by very strong inflows which represented 28 per cent of FuMA at the start of the year. Customer deposits stood at £4.13 billion, up 10 per cent year-on-year in 2024. The group said this rise was driven by the “success of the group’s relationship-based approach across both private and commercial banking.” Pre-tax profit last year was £35.1 million, down from £47.1 million; operating income rose to £179.5 million from £178.9 million. Among the highlights of 2024 was when the bank occupied new offices at 20 Finsbury Circus, which were officially opened by HRH The Princess Royal. Shares in Arbuthnot Banking Group are up around 4.5 per cent since the start of 2025.

The “relationship-based approach” is one that animates Barrett. And it appears to be working: The bank fared well in the WealthBriefing European 2025 Awards, securing accolades for Best UK Private Bank - Overall and Best UK Private Bank - Client Service.

“We pride ourselves on being proactive and responsive, whether that be answering the phone, replying to emails or opening accounts. Clients typically come to us for three main reasons: our team of skilled bankers, the high-quality service our support staff provide, and the direct access they get to our expertise. In some cases, though, a client signs up to Arbuthnot Latham because of bad experiences they have had before,” he said.

“You need bankers to be experts in their fields, and to be listening. The importance of wealth planning is more significant now than it has been in the last few years,” he continued. It is a mistake to think that tech-savvy clients, such as those running sectors such as e-sports, etc, won’t value advice from a real advisor, in person, Barrett said. 

“Our experience is they want the personal touch even more,” he said. In a conversation via a chatbot or even over a video call, it will not always be possible for the bank to know if the client has grasped an idea. ChatGPT cannot tell if a person has really understood something, nor can it build an emotional connection with the client,” Barrett said. 

Arbuthnot Latham has made several hires from other banks; total headcount is about 900; banking headcount alone is 645. It is “really active” in growing its own talent and has an early career programme with about 36 early-career entrants a year across apprenticeships and graduates.

“We are seeing staff attrition at lower than before Covid. Before Covid, it was 20 per cent and now it is 10 per cent,” said Barrett. (The industry average remains closer to 20 per cent.)

Barrett said the way that the bank treats its staff is significant in fostering a stable approach.

A big factor, he said, is that when a banker/advisor seeks promotion, unlike in other banks where they need to apply for a new role, they can keep their existing book of clients and can be promoted in their role. This helps with staff retention and supports personal growth. Clients like to see their banker/RM rising the ladder and becoming more successful, Barrett said. “Clients feel that they are part of the journey.”

Arbuthnot Latham is very much a UK-focused bank; when it comes to the overseas side, it has a “fly-drive” model, such as targeting the reinsurance market in the Caribbean, in Asia and the Middle East. It specialises in clients from a wide range of sectors including sports, media and entertainment. For example, it also offers solutions and personalised services for television production, talent agencies, marketing services, video games, commercial production, music, post-production, theatre, and design businesses.

Is the message getting through to the wider financial world?

“We’re recognised as an organisation that is very dynamic and client-focused,” Barrett added.