Edinburgh private bank Hampden & Co to cash in on higher rates as income jumps to record level

Hampden & Co, the Edinburgh-based private bank, said it was set to benefit from rising interest rates as it unveiled strong growth in loans and deposits during 2021.

Bosses said the annual results had been driven by a “highly competitive and evolving product suite”, net client growth across the UK, and increased referrals from professional intermediaries.

Deposits from clients rose by 39 per cent to £696 million, from £501m in 2020, while loans and advances were up 29 per cent to £422m, compared with £326m a year earlier.

Total income for the year increased 29 per cent to £13.2m, the highest level since the bank was launched in 2015.

Graeme Hartop, CEO, Hampden & Co. Picture: Stewart Attwood

In 2021, Hampden & Co extended its specialist offerings, complementing its new retirement mortgage service with the launch of a self-build mortgage and financing for eco-friendly home and renewable energy initiatives.

Demand was most marked in London and the south east of England, accounting for around two thirds of total lending. The bank’s traditional Scottish markets also registered strong client and lending growth. In addition, lending via referrals from mortgage intermediaries rose by more than 38 per cent.

Hampden & Co was founded in 2010, opening for business in 2015 when it became the first new UK private bank launch in a quarter of a century. It also has offices in London.

Chief executive Graeme Hartop said: “The bank performed well in 2021 and demonstrated agility and resilience to help clients face the challenges of the pandemic.

“The rise in interest rates from the historic lows of the last few years will help us to achieve profitable scale. We see signs of further rates increases in 2022 in response to inflationary pressure.

“At a time when many banks focus on selling products and direct clients online or to call centres, we provide a bespoke banking service tailored to the needs of our clients, their families, and associated businesses. It’s encouraging to see this approach translate to strong growth, with record numbers of new clients joining us from across the UK.”

Chairman Simon Miller added: “Hampden & Co has established itself as one of the most highly-rated private banks in the UK.

“The bank’s group of cornerstone and larger shareholders are staunch in their support and they have committed to invest £8m in the first half of 2022. This will support the continued growth of the business.”

To further support its growth, the bank has made a series of senior appointments across its London and Edinburgh offices, and to its board.

Colin Tate joined from Sainsbury’s Bank as chief operating officer, Ryan Beattie joined as a banking director from Adam & Company, former Goldman Sachs director Caroline Taylor was appointed to the board as non-executive director and chair of the remuneration committee, and Noble & Co chief executive Angus Macpherson joined the board as a non-exec.

Hartop added: “Our focus exclusively on banking as opposed to investment management has allowed us to develop strong, collaborative relationships with wealth managers, mortgage intermediaries and other professional advisers. Many new clients have come to us following introductions from their accountant, solicitor or wealth manager.”

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