ABG’s 1H’25 results reflected strong growth in low-capital-intensity businesses such as deposits and wealth management, alongside specialist lending in RAF and leasing, while some loan books, notably property, continued to contract. Profit before tax nearly halved to £10.9m from £20.8m in 1H’24, mainly due to the falling rate environment and softer activity in private equity-driven lending, with lower truck resale profits also weighing. However, these headwinds were largely anticipated, and we expect the noise to moderate over time, and so forecast higher profits in 2H’25 than 1H’25 and the FY’26 run rate to be above that of 2H’25. Watch the full DirectorsTalk interview with Hardman & Co Analyst Mark Thomas.
