The bank will take on new premises in Manchester to increase its presence in the North West and expects to have a further six commercial bankers in place by early 2017.
In a third-quarter trading update, Arbuthnot Banking Group stated: “The disruption in the larger UK banks has led to a number of direct approaches from experienced bankers who are interested in the potential that a well-established banking brand like Arbuthnot Latham can offer commercial banking clients.
“Accordingly, we have accelerated our expansion plans.”
The group revealed that its overall lending pipeline had experienced good growth during the three months to 30th September 2016.
However, Arbuthnot Latham warned that the recent reduction in the base rate will result in a short-term fall in the bank’s net interest margin.
The longer-term impact of this change may be reduced dependant on where rates in the deposit market stabilise.
Arbuthnot Banking Group is currently the largest single shareholder in challenger Secure Trust Bank PLC, holding an 18.9% investment that is treated as an associated undertaking.
In June, the group agreed to sell a 33% stake in Secure Trust Bank as the challenger hoped to move to a premium listing on the main market of the London Stock Exchange.
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