FTSE COMPANY REPORT Share price analysis relative to sector and index performance Arbuthnot Banking Group ARBB Banks — GBP 10.025 at close 18 June 2021 Absolute Relative to FTSE UK All-Share Sector Relative to FTSE UK All-Share Index PERFORMANCE 18-Jun-2021 18-Jun-2021 18-Jun-2021 12 120 130 1D WTD MTD YTD Absolute 0.2 5.0 -4.1 28.9 11 110 120 Rel.Sector 3.1 8.1 2.0 10.9 Rel.Market 2.0 6.7 -3.7 18.4 10 100 110 VALUATION 9 90 100 Trailing Relative Price Relative Price Relative 8 80 90 PE -ve Absolute Price (local (local currency) AbsolutePrice EV/EBITDA - 7 70 80 PB 0.8 PCF -ve 6 60 70 Div Yield 0.0 Jun-2020 Sep-2020 Dec-2020 Mar-2021 Jun-2021 Jun-2020 Sep-2020 Dec-2020 Mar-2021 Jun-2021 Jun-2020 Sep-2020 Dec-2020 Mar-2021 Jun-2021 Price/Sales 1.7 Absolute Price 4-wk mov.avg. 13-wk mov.avg. Relative Price 4-wk mov.avg. 13-wk mov.avg. Relative Price 4-wk mov.avg. 13-wk mov.avg. Net Debt/Equity 1.5 100 100 100 Div Payout 0.0 90 90 90 ROE -ve 80 80 80 70 70 Index) Share 70 Share Sector) Share - - 60 60 60 DESCRIPTION 50 50 50 The Company is a banking and financial services 40 40 40 RSI RSI (Absolute) group. It operates through two divisions, personal 30 30 30 financial services and private and merchant banking. 20 20 20 10 10 10 RSI (Relative to FTSE UKFTSE All to RSI (Relative RSI (Relative to FTSE UKFTSE All to RSI (Relative 0 0 0 Jun-2020 Sep-2020 Dec-2020 Mar-2021 Jun-2021 Jun-2020 Sep-2020 Dec-2020 Mar-2021 Jun-2021 Jun-2020 Sep-2020 Dec-2020 Mar-2021 Jun-2021 Past performance is no guarantee of future results. Please see the final page for important legal disclosures. 1 of 4 FTSE COMPANY REPORT: Arbuthnot Banking Group 18 June 2021 Valuation Metrics Price to Earnings (PE) EV to EBITDA Price to Book (PB) 31-May-2021 31-May-2021 31-May-2021 40 100 ‖‖ ‖ ‖ 2 35 90 80 30 1.5 +1SD 70 +1SD 25 60 +1SD 20 50 1 Avg 15 Avg 40 30 -1SD 10 0.5 20 Avg 5 -1SD 10 0 ‖ ‖ ‖ ‖ 0 0 Jun-2016 Jun-2017 Jun-2018 Jun-2019 Jun-2020 Jun-2016 Jun-2017 Jun-2018 Jun-2019 Jun-2020 Jun-2016 Jun-2017 Jun-2018 Jun-2019 Jun-2020 Standard Chartered 63.0 Lloyds Banking Group 23.9 Close Brothers Group 1.7 Lloyds Banking Group 40.6 HSBC Hldgs 22.6 Bank of Georgia Group 1.1 Banks 36.8 Natwest Group 21.2 TBC Bank Group 1.0 HSBC Hldgs 30.7 Investec 20.2 Arbuthnot Banking Group 0.8 Close Brothers Group 22.7 HSBC Hldgs 0.7 Banks 18.5 Barclays 20.8 Banks 0.6 Bank of Georgia Group 9.6 TBC Bank Group 8.1 Virgin Money UK 0.6 Metro Bank -0.6 Barclays 6.3 Natwest Group 0.6 Virgin Money UK -13.8 Metro Bank 0.0 Barclays 0.5 Natwest Group -33.2 Virgin Money UK 0.0 Standard Chartered 0.4 Arbuthnot Banking Group -116.8 Arbuthnot Banking Group 0.0 Metro Bank 0.1 -140 -120 -100 -80 -60 -40 -20 0 20 40 60 80 0 5 10 15 20 25 30 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 Price to Cash Flow (PCF) Dividend Yield % Price to Sales (PS) 31-May-2021 31-May-2021 31-May-2021 0.7 5 4.5 0.6 +1SD 4 4 3.5 0.5 +1SD Avg 3 0.4 3 +1SD 2.5 Avg Avg 0.3 2 -1SD 2 0.2 -1SD 1.5 1 -1SD 0.1 1 0 ‖ ‖ ‖ ‖ 0 0.5 Jun-2016 Jun-2017 Jun-2018 Jun-2019 Jun-2020 Jun-2016 Jun-2017 Jun-2018 Jun-2019 Jun-2020 Jun-2016 Jun-2017 Jun-2018 Jun-2019 Jun-2020 Banks 80.0 Investec 3.8 Close Brothers Group 2.3 Lloyds Banking Group 20.0 Close Brothers Group 2.4 Natwest Group 1.8 Natwest Group 11.5 HSBC Hldgs 2.4 Arbuthnot Banking Group 1.7 Close Brothers Group 11.3 Banks 1.7 HSBC Hldgs 1.5 Barclays 6.9 Natwest Group 1.5 Bank of Georgia Group 1.3 Bank of Georgia Group 4.2 Standard Chartered 1.3 Banks 1.3 Investec -4.6 Barclays 0.5 Barclays 1.2 Standard Chartered -7.6 Virgin Money UK 0.0 Investec 1.1 Arbuthnot Banking Group -34.5 Metro Bank 0.0 Lloyds Banking Group 1.0 HSBC Hldgs -42.7 Bank of Georgia Group 0.0 Standard Chartered 1.0 Virgin Money UK -100.0 Arbuthnot Banking Group 0.0 Metro Bank 0.3 -120 -100 -80 -60 -40 -20 0 20 40 60 80 100 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 0 0.5 1 1.5 2 2.5 Note: bar chart reflects the top and bottom five current values for the valuation ratio in question for FTSE All Shares stocks in the same sector as the stock concerned. All valuation metrics are trailing. 2 of 4 FTSE COMPANY REPORT: Arbuthnot Banking Group 18 June 2021 Valuation Metrics Net Debt to Equity Dividend Payout (DP) Return on Equity (RoE) 31-May-2021 31-May-2021 31-May-2021 1.5 +1SD 90 50 ‖ ‖ 80 70 40 1 Avg 60 30 50 40 20 0.5 -1SD 30 +1SD 20 10 10 +1SD Avg 0 0 Avg 0 ‖ ‖ ‖ ‖ Jun-2016 Jun-2017 Jun-2018 Jun-2019 Jun-2020 Jun-2016 Jun-2017 Jun-2018 Jun-2019 Jun-2020 Jun-2016 Jun-2017 Jun-2018 Jun-2019 Jun-2020 Metro Bank 3.8 Standard Chartered 86.3 Bank of Georgia Group 12.9 Barclays 3.2 HSBC Hldgs 78.4 TBC Bank Group 11.7 Standard Chartered 3.0 Banks 60.3 Close Brothers Group 7.7 Virgin Money UK 2.9 Close Brothers Group 54.6 Investec 4.9 Banks 2.9 Lloyds Banking Group 46.7 HSBC Hldgs 2.4 HSBC Hldgs 2.9 Virgin Money UK 0.0 Banks 1.7 TBC Bank Group 2.3 Investec 0.0 Standard Chartered 0.7 Close Brothers Group 1.9 Barclays 0.0 Arbuthnot Banking Group -0.7 Bank of Georgia Group 1.9 Bank of Georgia Group 0.0 Natwest Group -1.7 Investec 1.5 Arbuthnot Banking Group 0.0 Virgin Money UK -4.4 Arbuthnot Banking Group 1.5 Natwest Group 0.0 Metro Bank -21.0 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 0 10 20 30 40 50 60 70 80 90 100 -25 -20 -15 -10 -5 0 5 10 15 ROE vs. PB — sector Du Pont Analysis 1.7 CBG 16 60 1.6 14 1.5 ‖ 50 1.4 Regression 12 1.3 1.2 10 40 BGEO 1.1 8 1.0 TBCG 30 PB 0.9 6 0.8 ARBB HSBA 4 20 0.7 LLOY INVP Banks 0.6 VMUK NWG 2 0.5 BARC 10 STAN 0.4 0 0.3 -2 0 0.2 ‖ MTRO 2017 2018 2019 2020 2021 0.1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Net Margin Asset Turnover Gearing ROE (rhs) ‖ ROE Note: bar chart reflects the top and bottom five current values for the valuation ratio in question for FTSE All Shares stocks in the same sector as the stock concerned. All valuation metrics are trailing. 3 of 4 FTSE COMPANY REPORT: Arbuthnot Banking Group 18 June 2021 Brief description Brief description Price to Earnings Price to Earnings (PE) is price over earnings per share. Earnings are based on the latest Gearing Gearing is Total Assets divided by Common Equity. Total Assets and Common Equity are (PE) available fiscal year earnings. each averaged over two years, that is, t and (t-1). Price to Sales (PS) Price to Sales (PS) is price divided by sales per share. It is based on sales from continuing Asset Turnover Asset turnover is Sales divided by Total Assets. Total Assets is averaged over two years, operations for the fiscal year. that is, t and (t-1). Price to Book (PB) Price to Book (PB) is price at the indicated date divided by common equity per share. Dupont Breakdown Return on Equity (RoE) = Net Margin * Gearing * Asset Turnover Common/ordinary equity is generally as reported at the most recent fiscal year-end but is Analysis adjusted to exclude minority interest, preferred stock and selected items as appropriate. RoE vs PB Plot of RoE versus PB at last month end for all FTSE UK All Share stocks in the sector Price to Cash Flow Price to Cash Flow (PCF) is price at the indicated date divided by cash flow per share. relative to the stock in question. Data may be limited to the stock in question if there are (PCF) currently no stocks in the corresponding FTSE UK All Share sector. Net Debt Equity Net Debt Equity is Net Debt as a percentage of common equity. Not calculated if Absolute Absolute graphs reflect performance for the stock in question for up to 366 days adjusted denominator (common equity) is negative for intervening corporate actions.