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Arbuthnot Banking (ARBB) AI Stock Analysis

8 Followers
GB:ARBB

Arbuthnot Banking

(LSE:ARBB)

Select Model
Rating:79Outperform
Price Target:GBX 933.00â–²(6.63% Upside)
Action:reiterated
Date:11/05/26

Arbuthnot Banking earns a strong overall score, primarily driven by a highly attractive valuation, a robust 6.79% dividend yield, and a significantly de-risked balance sheet. Consistent cash flow and top-line revenue growth further bolster its position. However, these strengths are somewhat offset by ongoing profit margin contraction, which remains the primary operational risk to monitor.

Positive Factors
Lower leverage and stronger equitySteady equity growth and the sharp reduction in debt strengthen Arbuthnot’s ability to absorb credit losses and manage funding pressure. This improves financial flexibility for lending and investment while reducing balance-sheet sensitivity to adverse banking conditions over the next several quarters.
Negative Factors
Recent revenue contractionThe negative latest revenue-growth figure signals that the group’s recent top-line momentum has not been consistently sustained. Continued contraction would constrain operating leverage, reduce capacity to absorb cost increases, and make the broader recovery more dependent on margins and credit performance.

Arbuthnot Banking (ARBB) vs. iShares MSCI United Kingdom ETF (EWC)

-10%-5%0%5%10%15%20%25%GB:ARBB+4.11%EWC+19.77%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
GBP 141.63M
Dividend Yield
6.29%
Average Volume (3M)
32.58K
Price to Earnings (P/E)
7.5
Beta (1Y)
0.06
Revenue Growth
-6.35%
EPS Growth
16.23%
Country
UK
Employees
890
Sector
Financial
Sector Strength
68
Industry
Banks - Regional

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 segme...

How the Company Makes Money

Arbuthnot Banking Group primarily makes money through its banking activities. The core revenue stream is interest income: it pays interest (and incurs funding costs) on customer deposits and other funding sources, and earns interest on loans and othe...

Arbuthnot Banking Financial Statement Overview

Summary

Arbuthnot Banking displays a robust financial profile marked by phenomenal revenue growth, significant debt reduction, and excellent cash flow generation. However, a steady decline in net income indicates margin compression, posing a risk to long-term profitability.

Income Statement

65Positive

Balance Sheet

85Very Positive

Cash Flow

78Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue296.58M304.30M229.73M178.25M160.48M105.41M
Gross Profit175.88M172.73M229.73M220.25M128.93M88.83M
EBITDA120.22M35.03M46.92M031.93M12.60M
Net Income19.01M17.81M24.85M35.38M16.46M6.79M
Balance Sheet
Total Assets5.23B5.00B4.73B4.34B3.61B3.36B
Cash, Cash Equivalents and Short-Term Investments522.67M437.55M911.89M-119.82M848.52M888.14M
Total Debt117.42M98.33M285.72M284.90M281.49M298.38M
Total Liabilities4.95B4.72B4.46B4.09B3.40B3.16B
Stockholders Equity279.47M276.40M266.96M252.44M211.98M200.88M
Cash Flow
Free Cash Flow55.70M52.91M7.59M-29.02M21.80M-3.54M
Operating Cash Flow55.76M54.01M369.16M-24.18M29.04M37.49M
Investing Cash Flow-494.26M-715.09M-282.87M-543.47M-305.71M-242.96M
Financing Cash Flow169.97M237.26M-13.37M625.08M237.06M346.54M

Arbuthnot Banking Technical Analysis

Technical Analysis SentimentPositive
Last Price875.00

Price Trends

50DMA806.70Positive
100DMA803.83Positive
200DMA810.81Positive

Market Momentum

MACD15.17Negative
RSI74.59Negative
STOCH82.23Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:ARBB, the sentiment is Positive. The current price of 875.00 is above the 20-day moving average (MA) of 827.25, above the 50-day MA of 806.70, and above the 200-day MA of 810.81, indicating a bullish trend. The MACD of 15.17 indicates Negative momentum. The RSI at 74.59 is Negative, neither overbought nor oversold. The STOCH value of 82.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:ARBB.

Arbuthnot Banking Peers Comparison

Overall Rating

UnderperformOutperform
Sector (68)

Financial Indicators

GB:ARBB against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
GB:ARBBGB:ARBB79OutperformGBP 139.20M7.486.84%6.29%-6.35%16.23%
GB:PAGGB:PAG74OutperformGBP 1.36B8.2311.98%5.99%-6.82%-7.03%
GB:MTROGB:MTRO68NeutralGBP 1.20B24.567.00%―0.76%-49.33%
Sector *68Neutral$18.00B11.429.92%3.81%9.73%1.22%
GB:NBSGB:NBS67NeutralGBP 1.32B1.075.68%―7.19%-54.08%
GB:STBGB:STB52NeutralGBP 260.49M10.966.44%2.52%-8.35%5.35%

* Financial Sector Average

Performance Comparison

0%25%50%75%GB:ARBBGB:BGEOGB:MTROGB:NBSGB:PAGGB:STBDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
GB:ARBB and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
GB:ARBBArbuthnot Banking875.0034.554.11%
GB:BGEOBank of Georgia Group Plc13720.006021.0578.21%
GB:MTROMetro Bank196.0089.4083.86%
GB:NBSNationwide Building Society12450.00-600.00-4.60%
GB:PAGParagon Banking757.50-17.37-2.24%
GB:STBSecure Trust Bank1434.00455.0746.49%

Arbuthnot Banking Corporate Events

Business Operations and StrategyFinancial Disclosures

Arbuthnot Banking Group Lifts Profit Outlook on Strong Q3 Growth

Positive
Oct 22, 2026

Arbuthnot Banking Group reported robust third-quarter trading, with customer loans and leased assets rising 12% to £2.5bn, deposits up 10% to £4.9bn and funds under management and administration climbing 21% to £3.1bn over the past 12 months. Broad-b...

Business Operations and StrategyRegulatory Filings and Compliance

Arbuthnot Banking Chairman Sir Henry Angest Lifts Stake to 60% Voting Control

Positive
Sep 29, 2026

Arbuthnot Banking Group PLC has disclosed that its Chairman and Chief Executive, Sir Henry Angest, purchased 20,000 ordinary shares in the company on 29 September 2026 via the London Stock Exchange. The transaction, conducted at a price of £8.008 per...

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.

Date of analysis: Nov 04, 2026