Private bank Hampden & Co hails first-ever annual profit - and says it has 'come of age'

Private bank Hampden & Co has cheered it achieving its first full-year profit as well as record lending in 2022, saying it has “come of age” after launching less than a decade previously.

The Edinburgh-based company – which says it was the first new private bank in the UK in 30 years when it opened to clients in 2015 – has revealed after previously flagging a record first half that its total income notched up in 2022 was £23 million, a year-on-year jump of 73 per cent. Its profit before tax came in at £2m, and taking into account a deferred tax credit totalled £6.9m.

Total deposits for the year rose 14 per cent to just under £800m, and lending increased 6 per cent to a record £448m. Hampden & Co added that it saw strong demand for its lending services, including residential, retirement interest-only, and self-build mortgages, plus investment portfolio lending. Borrowing through introductions from professionals, including wealth-managers, solicitors, accountants, and mortgage-introducers jumped 40 per cent to £135m.

The bank – which also has an office in London – added that it continued to attract “high-quality” clients, with the number up more than a tenth to 4,700 last year, during which it boosted its own team of bankers too, and in October it announced the appointment of two directors with a collective 60-plus years of experience, for example. “With client retention rates remaining very high and a conservative balance sheet, [we have] been unaffected during the recent banking market volatility,” it added.

Hampden & Co has 'a secure base for future growth given the clear demand for personalised banking services', says CEO Graeme Hartop. Picture: Stewart Attwood.

Chairman Simon Miller said: “The bank had a very successful 2022, achieving its first full-year profit and it has come of age. This is the result of building strong relationships with our loyal clients, professional partners, shareholders, and of course the efforts of our very capable team.”

Chief executive Graeme Hartop said: “Hampden & Co has been built on solid foundations with a strong capital base and conservative risk appetite, and has continued to perform strongly in the first few months of 2023. These foundations will provide a secure base for future growth given the clear demand for personalised banking services.”