- Arbuthnot Banking says it traded strongly in the third quarter with both its retail and private banks seeing good demand for products.

It says that as a result of the £75m institutional placing of Secure Trust Bank shares, which was completed on 9 July, the capital base of the Group increased by more than 80%. All of this new capital is available to support growth.

Arbuthnot says Secure Trust Bank (STB) has experienced strong demand for its consumer finance lending, especially in Cycle and Motor Finance. It also successfully launched its Season Ticket financing product and expects this to develop further in 2015. The bank has made good progress with the development of its SME lending business. The Real Estate finance team has built up a significant pipeline of good quality opportunities with prudent loan to values. At the same time it has accelerated its recruitment plans adding to both relationship management and credit risk teams.

Secure Trust Bank Commercial Services, the invoice finance division of the bank, launched as planned on 1 September.

STB's total new lending volumes written during Q3 2014 are over 87% higher than in the same period last year. The loan book, which is now over £500 million, has performed consistently with the trends reported in the first six months of 2014. Impairment levels remain below those expected when the loans were originated.

Arbuthnot says the investment made by Arbuthnot Latham (AL) in its Private Banking distribution continues to be rewarded. The bank has seen a good flow of new client introductions leading to attractive loan opportunities and further increases in funds under management.

The Dubai branch has celebrated its first anniversary and remains on track to break even in 2015 as planned.

The sale of certain assets of Gilliat Financial Solutions and its subsequent cessation of business were completed during the quarter, with no material impact on the profitability of AL.

Accordingly, the group anticipates the full year results will be marginally ahead of market expectations. Given the improving market conditions and the enlarged capital base, the group remains well positioned to maintain its positive progress.

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