Skip to content
 

The private bank that is making money from higher interest rates

*

It may seem strange to readers that we are tipping a UK bank this week and adding it to our short term trading portfolio, but we think this stock stands out for its quality in a sector which has been battered recently by negative news sentiment. This bank delivered some extremely good results for 2022, showing massive improvement in its core business profitability.

This bank is also a specialist in asset-backed lending to small business, which is something I know a bit about, having worked with a fund manager that runs a $1.5bn ABL book in the UK. In this case the bank in question is diversifying heavily into this market using a number of SME financing businesses. The asset-backed lending market is still very much a growth space for smaller and medium-sized players, as larger banks retreat from looking after the financing needs of the British small business (something they have been doing since the financial crisis in 2008).


Want the full story? Access all of The Armchair Trader's content for just £5.99 per month.

Get weekly investment ideas and tips that will take your investing to the next level. Sign up here.

Free 28 day trial. Cancel anytime.


Log In or Sign Up to Armchair Trader+

Already a member? Log in here:


Not a member yet? Sign up for your free trial or check out the benefits of membership.

Further content of this article is not available as it is for members only. Please visit the registration page for Armchair Trader Plus+ for further details on the benefits of becoming a member.

Like this article? Sign up to our free newsletter.

This article does not constitute investment advice. Do your own research or consult a professional advisor.

'How to' Guides

Our latest in-depth company reports

Detailed reviews of selected companies and investment trusts.

On the podcast

Sign up for great investing stock tips

Thanks to our Partners

Our partners are established, regulated businesses and we are grateful for their support.

Aquis
FP Markets
Pepperstone
WisdomTree
CME Group
Back To Top