Edinburgh-based private bank hails double-digit growth

Graeme Hartop is the chief executive of Hampden & Co. Picture: Stewart Attwood
Graeme Hartop is the chief executive of Hampden & Co. Picture: Stewart Attwood
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Hampden & Co, the Edinburgh-based private bank, has continued its strong run of growth into 2019, notching up double-digit gains in lending and deposits.

Unveiling its first-half results, the bank said it had grown deposits by £95 million, a year-on-year increase of 39 per cent, while lending was up by £47m, a rise of 44 per cent.

It added that it had continued to grow its client base, which translated into income growth of 48 per cent compared to the same period last year.

The first half of 2019 saw the launch of an “enhanced” digital banking service and the strengthening of the banking teams in both Edinburgh and London.

The bank also launched its property finance review in which high net worth respondents answered questions around their top financial priorities and experiences in setting up mortgages. This highlighted that only three in ten individuals feel like they are treated as a person by their provider when arranging a mortgage.

Hampden & Co’s chief executive, Graeme Hartop, said: “Despite the industry wide move towards automation and anonymity, the ongoing growth demonstrated in these figures shows a pent-up demand for our personalised private banking service.

“We continue to strengthen our banking teams in Edinburgh and London to match our financial growth and we feel confident as we head into the second half of the year.

“Our analysis of the market in the first half of the year showed how frustrating the mortgage application process can be, which is where our personalised approach comes to the fore, particularly around helping families get on the property ladder.”

He said the bank had continued to perform strongly into the second half of the year, adding: “Even during the more traditionally quiet months of July and August, the bank has continued to attract new clients, driving both sides of the balance sheet, maintaining Hampden & Co’s growth trajectory.”

Hampden & Co became the first UK private bank to be established in a quarter of a century when it opened for business in June 2015. It is headquartered on Edinburgh’s iconic Charlotte Square and also runs an office in London’s fashionable Mayfair district.

Releasing results for 2018 earlier this year, the bank said lending was up 40 per cent to £132.5m and deposits up 38 per cent to £267.5m, while total income jumped 63 per cent to £6.4m.

The bank’s founder, Ray Entwistle, retired as chairman in 2018, succeeded by industry stalwart Alan Hughes. Hughes was previously chief executive of First Direct Bank and a former executive board member at HSBC.

Last December, 11 lenders including Hampden & Co were deemed eligible to tap into a £775m Royal Bank of Scotland fund aimed at boosting competition in the banking sector.

The firms, which also include Clydesdale Bank, will be entitled to a share of a £350m incentivised switching scheme aimed at encouraging small business customers to switch to a rival lender. RBS is freeing up the cash as part of conditions attached to its £45 billion state bailout at the height of the financial crisis.