Edinburgh private bank Hampden & Co hails double-digit growth as team expands
First-half results reveal strong year-on-year increases in income, deposits and lending against a backdrop of historically low interest rates and wider changes in the UK private banking sector.
In the six months to the end of June, income was up by £1.2 million or 24 per cent against the first half of 2020 to £6m, deposits rose by £180m or 42 per cent to £603m, while lending grew by £133m or 53 per cent to £381m.
The first-half performance follows strong growth in 2020 despite the economic fallout from the pandemic.
Chief executive Graeme Hartop said: “We have continued to experience strong demand for our accessible and flexible approach to banking, particularly during lockdown when clients valued having a banker they can call on.
“With our focus exclusively on banking, we have also been able to grow and strengthen our relationships with other advisers.
“The addition last year of our retirement mortgage service has proved very popular with advisers and their clients as they seek effective solutions to managing finances in later life. This has been reflected in our performance in the first half.”
In April, the bank launched self-build mortgages for clients who are acquiring land and building a new residential home, or who are significantly refurbishing an existing home.
In line with growing client numbers, the group added to its banking and support teams in Edinburgh and London during the first half of 2021, including senior hires, and has vowed to continue investing in its people and technology.
In June, the bank unveiled the appointment of Colin Tate as its chief operating officer, leading its technology strategy and business change programmes.
He joined the capital outfit from Sainsbury’s Bank where he spent more than a decade in senior management roles including head of architecture, head of strategic design and most recently head of digital transformation. In his earlier career, Tate was a management consultant with Accenture, Capgemini and PwC.
Hampden & Co was founded in 2010, opening for business in 2015 when it became the first new UK private bank launch in quarter of a century. It also has offices in London.
In April, the bank reported strong full-year results for 2020 and pointed to “high levels of interest from prospective clients” following the recent sale of fellow capital bank Adam & Co.
Total income for the year to the end of December rose by 18 per cent to £10.2m, from £8.7m in 2019, while loans and advances jumped 60 per cent to £326.3m, compared with £203.8m a year earlier.
The bank pointed to other financial highlights during 2020, including raising an additional £10m from shareholders to support continued balance sheet growth, ongoing costs and regulatory requirements.
It continued to hire during the year to support new business from clients, with appointments to the banking, commercial and administrative teams in Edinburgh and London. Key appointments were also made to the board.
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