Adam & Co sees profits double as costs reduce

ADAM & Co, the private bank owned by Royal Bank of Scotland, saw profits more than double last year as it reaped the benefits of reduced costs and lower writedowns.

Chairman Miller McLean said investment in the Edinburgh-based business over the past three years had enabled it to launch products and services to customers including smartphone applications.

Pre-tax profits rose to £11.5 million from £4.96m as operating costs fell by 20 per cent to £33.4m.

The bottom line also benefited from lower impairment charges of £7.5m, down from £9.7m.

Total deposit balances edged up by £100m to £2 billion. Income fell five per cent to £52.4m which the bank said reflected the increased costs of continuing to hold deposits for clients in excess of its loan book.

The total pay package of the highest paid director, thought to be managing director Graham Storrie, rose to £366,707 from £353,832. Average staff numbers fell to 228 from 248.

McLean said it was clear that “economic conditions will remain challenging for private banks”.

“Despite this often sobering backdrop we also see opportunities and expect to remain the Scottish private bank for discerning private clients.”

A number of former Adam & Co executives are involved in the planned launch of a new private bank Scoban.

Former Adam & Co chairman Ray Entwistle revealed earlier this year that it would seek £30m from investors once it is granted a licence by regulators.