The rise in turnover drove pre-tax profit for the first half to £5m, up from £2m for the whole of 2022, as the private bank benefited from rising rates.
Hampden & Co’s total income rose to £15.5m in the first six months of 2023, up 74% year-on-year (yoy).
The rise in turnover drove half-year pre-tax profit to £5m – up from £2m for the whole of 2022. That came amid a strong uptick in demand for the Edinburgh and London-based private bank’s services.
An unaudited release stated the bank had more than 5,000 clients at the end of June, up 8% since the start of the year, aided by increased referrals from professional partners. Client numbers were up 13% yoy.
Total lending by the bank increased 6% from the same period of 2022 to £461m, while total deposits also rose 6% to £773m.
Lending growth was particularly strong for the bank’s retirement mortgages, which allow clients to raise funds against their main home. Lending growth was up 10% in the first half and 39% versus the same period last year.
In the wake of rising interest rates, clients continued to reallocate cash from current and call accounts into notice and term accounts, locking in higher rates. Term deposits rose 44% yoy, while with notice deposits were up 96%.
Hampden & Co chief executive Graeme Hartop said: ‘We believe we are very well positioned to increase market share in the private banking sector as well as to meet the needs of underserved high-net-worth customers of high street banks.
‘It is particularly pleasing to see a high number of referrals from other professionals such as wealth managers, solicitors and accountants, as such partnerships are of significant benefit to our mutual clients.’
In May, Hampden & Co hired Mark Plummer, who previously led Handelsbanken’s office in Mayfair, as head of private banking in its London office.
Other recent appointments include John Glanville, Kevin Eagles, Alistair Macpherson and Gill Saunders, who have all joined as banking directors since the start of 2022.
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