Arbuthnot falls on trading losses – MoneyWeek

Theresultswillalsoshow£3。

5mofprovisionsinrespectofthecostsofanemployeesharescheme,butwillexcludethefinallossonthesaleofArbuthnotSecurities(ASL),whichisexpectedtobearound£1m。

ThefirmexpectstorecordagainonthesaleofthesharesinSTBofapproximately£16。

5m。

ASLsresultsfortheyearwillbereportedasdiscontinuedoperations。

Despitetheongoingdifficultiesoftheeconomicandbusinessenvironment,thefirminsisted2011hasbeenasuccessfulyearforArbuthnotBanking。

ThegroupscapitalpositionhasbeenfurtherstrengthenedbytheinitialpublicofferingofSecureTrustBank(STB),whichcontinuestogrowitsbalancesheetandfeeincome。

Inastatement,thefirmsaid:STBcontinuestoworkonsignificantorganicandexternalbusinessopportunities。

However,inrespectoftheconsumerfinancejointventurepreviouslymentionedbyABG,despiteexhaustiveeffortswehavebeenunabletoagreeastructurewhichmeetstheregulatoryrequirementsandfallswithinourriskappetite;consequentlythejointventurewillnotbeproceedingasexpected。

Asaresultanticipatedincomeassociatedwiththejointventurehasnotbeenreceivedandsomeextracostsassociatedwithcarryingexcessdepositshavebeenincurred。

Thesharepricefell4。

41%to325pby14:27。

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