Arbuthnot specialist lending grows 26% as RAF loan book surges 45%

Arbuthnot Banking Group has reported strong growth across its specialist lending businesses in the third quarter of 2026, with Renaissance Asset Finance (RAF) and Arbuthnot Commercial Asset Based Lending (ACABL) both recording loan book growth of more than 40% over the past 12 months.

In its trading update for the three months to 30 September 2026, the Group reported a 26% increase in specialist lending over the previous year, helping drive a 12% rise in total customer loans and leased assets to £2.5bn, compared with £2.2bn in September 2025.

Customer deposits increased 10% year-on-year to £4.9bn, while funds under management and administration rose 21% to £3.1bn.

Following the strong performance across its lending divisions, continued growth in Wealth Management and a stable interest rate environment, Arbuthnot now expects full-year 2026 profit before tax to exceed previous expectations.

Arbuthnot Commercial Asset Based Lending grows loan book to £305.6m

ACABL continued its strong growth trajectory during the third quarter, with its loan book Arbuthnot Commercial Asset Based Lending reaching £305.6m at the end of September.

This represents an increase of 39% since the beginning of 2026 and an annualised growth rate of 46%, marking a significant recovery following a small decline in lending during 2025.

New clients accounted for 82% of the division’s growth, with the business also reporting an increase in private equity-sponsored transactions.

Despite the challenging economic environment, ACABL said its approach to working closely with clients’ management teams, alongside businesses maintaining higher cash reserves to withstand potential economic shocks, continued to help mitigate credit losses across its portfolio.

Renaissance Asset Finance loan book jumps 45% to £409.5m

Renaissance Asset Finance delivered another period of substantial growth, with its loan book reaching £409.5m at the end of September 2026.

The figure represents a 45% increase over the previous 12 months and growth of 43% since December 2025.

The majority of the expansion was driven by RAF’s core specialism in financing high-value vehicles for high-net-worth individuals, a market that has performed particularly strongly during 2026.

The division reported no significant deterioration in credit quality despite the rapid expansion of its lending portfolio.

RAF’s Block Discounting business, launched in late 2021, also continued to grow, with its loan book increasing by 25% since December 2025.

However, Arbuthnot expects RAF’s growth to moderate during the fourth quarter as the interest rate outlook points towards potentially higher financing costs.

Asset Alliance Group sees improving commercial vehicle market

Asset Alliance Group (AAG) reported further improvement in its performance, with assets available to lease reaching £384.2m at the end of September 2026.

This compares with £382.8m at the end of December 2025 and £380.0m at the end of September 2025.

Origination during the first nine months of 2026 totalled £86.5m.

The commercial vehicle division continued to show signs of recovery, supported by improving new vehicle registrations and increased lending activity.

However, the coach market remained subdued, with Arbuthnot attributing weaker demand primarily to the impact of the Middle East conflict on tourism.

The Group highlighted AAG’s diversified portfolio across commercial vehicles, buses and coaches as an important factor in improving resilience against fluctuations in individual market sectors.

Group raises full-year profit expectations

Across the wider Group, Arbuthnot reported continued growth in its Banking and Wealth Management operations.

Funds under management and administration reached £3.09bn at the end of September, representing 15% growth since the beginning of the year and 21% year-on-year.

The Wealth Management division also returned to a net profit during the third quarter, supported by new client inflows and the performance of its investment portfolios.

Arbuthnot noted that the Bank of England’s decision to maintain its base rate at 3.75% in September had provided a more favourable environment than anticipated at the beginning of the year, when interest rate reductions had been expected.

The Group said any further increase in UK interest rates could provide an additional benefit to its financial performance.

With specialist lending continuing to drive growth and Wealth Management maintaining positive momentum, the Board has upgraded its expectations for full-year 2026 profit before tax, reflecting the Group’s performance during the first nine months of the year.