UK-listed Arbuthnot Banking Group, which covers activities including private banking, said today it made a profit before tax of £200,000 (around $326,600) for the six months to 30 June, down from £2.3 million a year ago. However, its private banking business showed sharply improved results.

Both of the group’s banking arms have “traded strongly and have reported results ahead of expectations”, but Arbuthnot Securities made a loss for the period “against a background of exceptionally difficult markets conditions”, the firm said in a statement.

Arbuthnot Banking Group is the holding company for Arbuthnot Latham, the private bank, Secure Trust Bank - a retail bank - and Arbuthnot Securities.

Arbuthnot Latham’s pre-tax profit increased to £1.0 million, up from £100,000 due to “excellent lending opportunities and ability to increase number and average net worth of clients,” the bank said.

Discretionary assets under management rose by 58 per cent, it added.