ARBB

Arbuthnot Banking Group PLC

Banks First-pass screen £138m

360/1000 Overall fit

AI beneficiary 35% 25

Operating leverage 25% 35

Valuation 25% 30

Downside protection 15% 70

First-pass take

Strong downside protection (net cash, 49% LTD, 13.3% CET1) and deposit growth (+11%), but zero AI exposure. Profitability fell 31% YoY with margin compression (operating margin 19.5%→14.3%) from rate cuts and staff inflation; conservative lending strategy reflects counter-cyclical posture in stagnant UK economy.

Flags

no-ai-exposuremargin-compressionprofit-declinerate-sensitiveuk-cyclical