Hampden & Co reports rapid growth in second year
Hampden & Co, the Edinburgh-based independent bank which opened in June 2015, has increased income by 138 per cent and nearly doubled the volume of loans it makes to clients.
In the second full year of trading, loans grew by 96 per cent to £94.2m and deposits by 35 per cent to £194.6m.
Hampden & Co is the UK’s newest Private Bank, and was created to provide a personal, professional banking service, in contrast to an industry that is moving in a direction of automation and digital self-service.
Graeme Hartop, CEO of Hampden & Co, said: “I am delighted to be reporting such strong growth figures, which have been driven from both our London and our Edinburgh offices. Our growth demonstrates the fact that there are many successful people who value the service we offer, and are attracted to a bank based on traditional values and personal service.”
Hampden & Co attributes part of this growth to the fact that it focuses purely on providing high quality banking, and does not offer services that compete with other professional advisers such Wealth Managers. This has led to these other professional advisers actively recommending the bank to their clients.
Mr Hartop continued: “When we launched we were the only Private Bank that focused purely on banking. By working alongside other advisers we are able to form part of a client’s advisory team, to work together on a client’s behalf. This focused position has been welcomed by clients and fellow professionals alike.”
While the bank has reported strong balance sheet growth, overall losses increased by 1.6 per cent, with the 138 per cent increase in income to £3.9m offset by increases in costs of 30 per cent to £10.3m.
Mr Hartop positions these losses by saying: “These losses are entirely in accordance with our business plan, and are to be expected by a new bank. The fact that our recent capital raising was over-subscribed demonstrates the justified confidence that our shareholders have in the long term prospects for the bank.”
Asked about the increase to the cost base, Mr Hartop added: “Clearly as the bank grows we need to invest in new people and new services. We recently announced the opening of second premises in Edinburgh, and we continue to hire top talent into the banking team and across the business. We are shortly going to be launching a mobile banking solution as a demonstration of how our traditional banking values are complemented by appropriate technology.”
Hampden Chairman Ray Entwistle said: “The bank has continued to progress very well and is in excellent shape. Whilst I am delighted with our financial results, it is the ongoing feedback I receive from our clients that is particularly pleasing, and shows we are growing from strong foundations. The fact that our clients have been introducing younger generations from their families to us, has also been well received. It is rewarding to see younger people becoming part of Hampden & Co, something we visualised from the inception.”