Arbuthnot Banking Group grows deposits to £4.6bn as RAF loan book jumps 27%

Arbuthnot Banking Group has reported strong early momentum across its specialist asset finance and commercial lending businesses, with Renaissance Asset Finance (RAF) and Arbuthnot Commercial Asset Based Lending (ACABL) delivering double-digit growth in the first four months of 2026, while Asset Alliance Group (AAG) showed signs of stabilisation in challenging market conditions.

In a trading update ahead of its Annual General Meeting, the group said total loan balances, including leased assets, reached £2.32bn at 30 April 2026, up 3% since the year end, despite continued economic headwinds.

Among the standout performers was Renaissance Asset Finance, which increased its loan book to £336m, representing growth of 17% since the end of 2025 and 27% year on year. The group said the majority of the growth came from RAF’s core specialist market of financing high-value cars for high-net-worth individuals.

RAF also passed a significant milestone during the period, exceeding £1bn of lending since its launch in 2014. The business’s Block Discounting division, introduced in late 2021, continued its strong trajectory, recording an 8% increase over the four-month period.

Arbuthnot Commercial Asset Based Lending also delivered strong performance, with its loan book growing from £219m at the end of 2025 to £247m by the end of April, an increase of 13% in four months and 14% year on year.

The group said ACABL’s growth was driven by a combination of new client wins and increased facilities for existing customers, with around two-thirds of new business linked to event-driven transactions. Current pipeline activity indicates that momentum is expected to continue through the remainder of the first half of 2026.

Arbuthnot added that many ACABL portfolio clients had strengthened their balance sheets in response to previous economic uncertainty, helping shield them from rising energy costs, inflationary pressures and supply chain disruption. As a result, new watchlist cases within the portfolio remained limited.

Meanwhile, Asset Alliance Group maintained broadly stable assets available to lease at £384m, compared with £383m at the end of 2025, while generating £34m of origination during the first four months of the year.

The group noted that while the coach market had come under pressure from rising fuel costs, the bus sector remained more resilient. Arbuthnot said AAG’s lending portfolio is now well balanced between commercial vehicles and buses, providing greater resilience against wider macroeconomic pressures.

AAG also saw improving conditions in the used commercial vehicle market, with end-of-lease vehicle sales returning to profitability after losses experienced during 2025.

Across the wider group, Arbuthnot Banking Group reported deposit growth of 9% year on year to £4.63bn and funds under management and administration of £2.8bn, up 25% year on year.