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Arbuthnot Banking
(LSE:ARBB)
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Rating:69Neutral
Price Target:
909.00 p
▲(8.21% Upside)
Action:Downgraded
Date:08/04/26
The score is led by improving financial performance (growth, profitability recovery, and lower leverage) and strong valuation support (low P/E and high dividend yield). These positives are tempered by only neutral technical positioning (price below longer-term averages) and uneven cash-flow consistency, while recent corporate events add a supportive but secondary tailwind.
Positive Factors
Revenue growth & profitability recovery
Multi-year revenue expansion, especially in 2024–2025, combined with a return to sustained profitability, indicates improving franchise momentum. That strengthens the recurring net interest and fee base, supports loan origination capacity and gives management more flexibility for long-term capital allocation.
Negative Factors
Variable cash generation
Cash generation has been inconsistent: exceptional operating cash in 2024 but a large free cash flow decline in 2025 and historical weak/negative years. This variability reduces predictability for reinvestment, dividends and buffer building, limiting durable financial flexibility compared with steadier peers.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & profitability recovery
Multi-year revenue expansion, especially in 2024–2025, combined with a return to sustained profitability, indicates improving franchise momentum. That strengthens the recurring net interest and fee base, supports loan origination capacity and gives management more flexibility for long-term capital allocation.
Read all positive factors
Arbuthnot Banking (ARBB) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£135.97M
Dividend Yield6.31%
Average Volume (3M)3.22K
Price to Earnings (P/E)7.2
Beta (1Y)0.10
Revenue Growth-6.35%
EPS Growth16.23%
CountryUK
Employees890
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.17
Shares Outstanding16,186,344
10 Day Avg. Volume3,561
30 Day Avg. Volume3,219
Financial Highlights & Ratios
PEG Ratio-0.29
Price to Book (P/B)0.52
Price to Sales (P/S)0.47
P/FCF Ratio2.71
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.96
Revenue Forecast (FY)£181.76M
Arbuthnot Banking Business Overview & Revenue Model
Company Description
Arbuthnot Banking Group PLC, operating with its various subsidiaries, provides a comprehensive array of private and commercial banking services and products throughout the United Kingdom. Its diverse operations are structured across several key se...
How the Company Makes Money
Arbuthnot Banking Group makes money primarily by earning net interest income and fee/commission income from its banking and lending activities. (1) Net interest income: The group takes customer deposits and other funding and uses this funding to o...
Arbuthnot Banking Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
67
Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 296.58M | 304.30M | 229.73M | 178.25M | 160.48M | 105.41M |
| Gross Profit | 175.88M | 172.73M | 229.73M | 220.25M | 128.93M | 88.83M |
| EBITDA | 120.22M | 88.50M | 46.92M | 56.94M | 31.93M | 12.60M |
| Net Income | 19.01M | 17.81M | 24.85M | 35.38M | 16.46M | 6.79M |
Balance Sheet | ||||||
| Total Assets | 5.23B | 5.00B | 4.73B | 4.34B | 3.61B | 3.36B |
| Cash, Cash Equivalents and Short-Term Investments | 522.67M | 437.55M | 911.89M | -119.82M | 848.52M | 888.14M |
| Total Debt | 117.42M | 98.33M | 285.72M | 284.90M | 281.49M | 298.38M |
| Total Liabilities | 4.95B | 4.72B | 4.46B | 4.09B | 3.40B | 3.16B |
| Stockholders Equity | 279.47M | 276.40M | 266.96M | 252.44M | 211.98M | 200.88M |
Cash Flow | ||||||
| Free Cash Flow | 55.70M | 52.91M | 7.59M | -29.02M | 21.80M | -3.54M |
| Operating Cash Flow | 55.76M | 54.01M | 369.16M | -24.18M | 29.04M | 37.49M |
| Investing Cash Flow | -494.26M | -715.09M | -282.87M | -543.47M | -305.71M | -242.96M |
| Financing Cash Flow | 169.97M | 237.26M | -13.37M | 625.08M | 237.06M | 346.54M |
Arbuthnot Banking Technical Analysis
Negative
840.00
Price Trends
830.75
Negative
837.54
Negative
845.75
Negative
Market Momentum
1.21
Negative
49.17
Neutral
33.93
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ARBB, the sentiment is Negative. The current price of 840 is above the 20-day moving average (MA) of 830.37, above the 50-day MA of 830.75, and below the 200-day MA of 845.75, indicating a bearish trend. The MACD of 1.21 indicates Negative momentum. The RSI at 49.17 is Neutral, neither overbought nor oversold. The STOCH value of 33.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:ARBB.
Arbuthnot Banking Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | £1.52B | 9.10 | 11.98% | 5.57% | -6.82% | -7.03% | |
69 Neutral | £135.97M | 7.18 | 6.84% | 6.31% | -6.35% | 16.23% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
58 Neutral | £1.19B | 22.72 | 5.16% | ― | -10.71% | 23.10% | |
57 Neutral | £1.36B | 1.11 | 5.68% | ― | 7.19% | -54.08% | |
57 Neutral | £293.14M | 17.05 | 4.70% | 2.24% | 0.49% | -11.39% |
* Financial Sector Average
GB:ARBB
Arbuthnot Banking
830.00
-136.65
-14.14%
GB:BGEO
Bank of Georgia Group Plc
12,020.00
4,642.82
62.93%
GB:MTRO
Metro Bank
177.80
65.40
58.19%
GB:NBS
Nationwide Building Society
12,900.00
-150.00
-1.15%
GB:PAG
Paragon Banking Group PLC
840.50
-24.94
-2.88%
GB:STB
Secure Trust Bank
1,604.00
520.05
47.98%
Arbuthnot Banking Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Arbuthnot Banking Group Switches AIM Nominated Adviser After Grant Thornton Reorganisation
Neutral
Jul 31, 2026
Arbuthnot Banking Group PLC has changed its nominated adviser on the AIM market following an internal reorganisation at Grant Thornton UK. The role moves from Grant Thornton UK LLP to Grant Thornton UK Advisory Tax LLP, ensuring continuity of adv...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Arbuthnot Banking Group Announces Board Resignation of Non-Executive Director
Neutral
Jul 21, 2026
Arbuthnot Banking Group PLC has announced that independent non-executive director Jayne Almond will step down from the company’s board, effective 1 September 2026, in order to concentrate on other professional commitments. She will simultane...
Business Operations and StrategyDividendsFinancial Disclosures
Arbuthnot Banking Group Hits £10bn Client Balance Target as Profits Edge Higher
Positive
Jul 21, 2026
Arbuthnot Banking Group reported a modest rise in pre-tax profit to £11.0m for the first half of 2026, alongside higher earnings per share and an increased interim dividend, despite a lower Bank of England base rate. The group’s capital...
Business Operations and StrategyDelistings and Listing Changes
Arbuthnot Banking Group to List Non-Voting Shares on AIM to Boost Liquidity
Positive
Jun 1, 2026
Arbuthnot Banking Group PLC will admit its existing ordinary non-voting shares to trading on AIM, with trading expected to commence around 2 June 2026, while the shares will retain their ARBN ticker and existing ISIN and SEDOL codes. The move, ena...
Business Operations and StrategyExecutive/Board Changes
Arbuthnot Banking Brings Back Veteran Banker Stephen Fletcher to Board
Positive
May 20, 2026
Arbuthnot Banking Group PLC has appointed Stephen Fletcher as a non-independent, non-executive director to its board, effective 1 June 2026, and he will also rejoin the board of its banking subsidiary, Arbuthnot Latham Co., Limited. The move brin...
Business Operations and StrategyShareholder Meetings
Arbuthnot Banking Shareholders Approve All AGM Resolutions
Positive
May 19, 2026
Arbuthnot Banking Group PLC announced that shareholders approved all resolutions presented at its 2026 Annual General Meeting, held on 19 May 2026. The approval of every resolution signals continued shareholder support for the company’s stra...
Business Operations and StrategyFinancial Disclosures
Arbuthnot Banking Group posts strong early-2026 growth across lending and wealth units
Positive
May 19, 2026
Arbuthnot Banking Group reported a strong start to 2026, with loan balances rising 3% to £2.32bn, deposits up 1% since year-end to £4.63bn and funds under management and administration climbing 5% to £2.80bn, a 25% increase year on ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.