- Total lending of £289 million up 16 percent against previous quarter and increased 77 percent year-on-year
- Deposits increase steadily despite drop in interest rates
- Bank raising additional share capital of £3 million in Q4
- David Huntley joins Board and will become Chairman of the Risk Committee upon regulatory approval
- Hampden & Co sees a relationship-driven approach “in demand and even more important” during Covid-19
- Hampden & Co extends services with launch of retirement mortgages
UK private bank Hampden & Co has reported strong results during Q3 on the back of demand for borrowing. Total lending was up 16 percent against the previous quarter at £289 million and increased 77 percent on a year-on-year basis. Deposits also increased over the quarter, up £5.2 million, despite the drop in interest rates to historic lows, and were up 13% at £65 million on a year-on-year basis.
The bank, which has offices in Edinburgh and London, is raising an additional £3 million from existing investors during Q4 which will take its overall share capital raise to approximately £10 million in 2020.
Following on from board announcements earlier this year, including the arrival of Simon Miller as Hampden & Co-Chairman, David Huntley has joined the board and will become Chairman of the Risk Committee upon regulatory approval. Huntley, who is a qualified actuary, brings significant financial sector experience from Pearl Life, Scottish Re, and Swiss Re Life. Graeme Hartop, Hampden & Co CEO, said: “We strengthened both the leadership team and the board this year, and David is another key appointment for the bank.”
Hampden & Co has seen its relationship-driven approach to banking as a differentiator to the rest of the market, something that Hartop says has become “in demand and even more important” since the onset of the coronavirus pandemic. Hartop added: “New clients of the bank have expressed their need for access to banking expertise, especially during the pandemic, and their increased dissatisfaction with the service levels at high street banks. We have all been facing up to such a challenging environment this year, it has not been an easy time for anyone, and we have concentrated our efforts on helping clients to mitigate the economic impact and to navigate these difficult times.”
In September, Hampden & Co extended its range of services with the launch of an interest-only retirement mortgage aimed at people managing their inheritance tax liabilities or who want to raise a lump sum without disturbing other assets. Graeme Hartop said: “We have established a strong position in the market, in no small part by supporting clients with complex finances who typically fall outside the algorithm-driven lending approach of the mainstream banks. This new mortgage service extends our overall offering in this area.”
In August, Hampden & Co reported first-half revenue up to £4.8 million.
