Hampden & Co reports strong client and profit growth in 2023

Hampden & Co saw new client numbers increase by almost a fifth in 2023 to finish the year at a new high of 5,598.

Client growth was driven by demand for personalised banking and bespoke lending following introductions from existing clients, professional advisers and mortgage brokers, as well as clients transferring from other private and mainstream High Street banks. Business introduced by mortgage brokers was up 39%, more than double the growth seen in 2022 (16%).

To meet the increased demand and deliver the personalised service expected, the bank grew the number of employees by almost a quarter (23%) to 154.

Key hires included industry veteran Mark Plummer, who joined as Head of Private Banking, London, Patrick Preece who joined as Banking Director in its London office and Claire Mann who joined as Head of Client Propositions. The bank also invested further in its dedicated Mortgage Intermediary team with the appointment of Martin Hillyer as Intermediary Relationship Director.

Launched in 2015, Hampden & Co recorded profit before tax of £9.1 million in 2023 (2022: £2.0m) and an inaugural dividend is recommended by the Board.

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.

Graeme Hartop, CEO, Hampden & Co, 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. Credit quality remains strong.

Retirement interest-only mortgages were consistent year-on-year at £8.7 million. 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 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 further positive endorsement of the bank, our staff and our ability to work in partnership with these other professionals.”