ABG’s 2022 results delivered the expected strong profit and franchise growth (pre-tax profit up from £4.6m to £20m). Core business profitability increased primarily because of widening spreads increasing the value of deposits. Core credit quality remained good. The scale of growth has been driven by the way in which ABG has managed its franchise, building a relationship bank with less price-sensitive deposits. In recent years, ABG has invested in multiple, new, specialised SME financing businesses. These delivered franchise/profit growth in 2022. There is no Silicon Valley Bank (SVB) read-across. The dividend rose by more than expected, and the medium-term Return on Capital (RoC ) target was achieved early.
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