Private banking

Hampden & Co profits leap as client numbers rise

Graeme Hartop
Graeme Hartop: endorsment

Hampden & Co, the Edinburgh-based private bank, saw pre-tax profits leap last year as client numbers rose by almost a fifth (19%) to a new high of 5,598.

Business introduced by mortgage brokers was up 39%, more than double the growth seen in FY2022 (16%).

Launched in 2015, the firm recorded a surge in profit before tax to £9.1 million in 2023 from £2m in 2022.

To meet the increased demand, the bank grew its headcount by almost a quarter (23%) to 154.

Key hires included industry veteran Mark Plummer, who joined as head of private banking, London, Patrick Preece as banking director in its London office, and Claire Mann as head of client propositions. The bank invested further in its dedicated mortgage intermediary team with the appointment of Martin Hillyer as intermediary relationship director.

Strong demand for borrowing – including residential, retirement-interest only, buy-to-let and self-build mortgages – saw total lending rise 9% to £488 million. Deposits increased 8% to £858 million, with term accounts seeing net inflows of £142 million as savers took advantage of higher rates.

The growth in new business introduced by mortgage brokers was driven by strong demand for high-value, often complex loans as interest rates stabilised. Credit quality remains strong.

Retirement interest-only mortgages were consistent year-on-year at £8.7m. Self-build mortgages increased 14%. Retirement interest-only mortgages allow people to raise funds against their principal property for a range of purposes, including to manage estate planning in relation to inheritance tax liabilities.

Graeme Hartop, CEO, said: “In an environment where interest rate rises have encouraged people to use savings to pay down debt, the bank grew both deposits and lending in 2023.

“The high volume of referrals from other advisers, including wealth managers, solicitors, accountants and mortgage brokers was further positive endorsement of the bank, our staff and our ability to work in partnership with these other professionals.”

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