Edinburgh's Hampden & Co sees numbers leap amid increased demand for personalised banking

Bosses said the bank had also been boosted by its bespoke lending offering following introductions from existing clients, professional advisers and mortgage brokers, as well as clients transferring from other private and mainstream high street banks. 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. Its client base mainly comprises high-net-worth individuals.

Releasing results for the past financial year, Hampden & Co, which also has a London office, said client numbers increased by 19 per cent to finish the year at a new high of 5,598. Business introduced by mortgage brokers was up 39 per cent, more than double the growth rate seen in the previous year. To meet the increased demand and continue delivering a personalised service, the bank grew its number of employees by almost a quarter to 154.

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

Hampden & Co, which competes with the likes of Adam and Company and Weatherbys, recorded a profit before tax of £9.1 million for 2023, up from £2m the year before. Strong demand for borrowing - including residential, retirement-interest only, buy-to-let and self-build mortgages - saw total lending rise 9 per cent to £488m. Total deposits increased by 8 per cent to £858m, with term accounts seeing net inflows of £142m as cash savers took advantage of higher interest rates.

Chief executive Graeme Hartop said: “Our accessible and personalised approach to banking is valued by our existing clients and has attracted many new clients. It shows that many people, including high-net-worth and affluent customers of high street lenders, appreciate the benefits of relationship banking.”

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

Retirement interest-only mortgages were consistent year-on-year at £8.7m. Self-build mortgages grew by 14 per cent. 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.

With profit before tax growing strongly last year an inaugural dividend is being recommended by the board.

Hartop added: “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 a further positive endorsement of the bank, our staff and our ability to work in partnership with these other professionals.”

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