Hampden & Co sees loans almost double

Hampden & Co, the UK’S newest private bank, almost doubled its lending to clients last year although losses edged up as it continues to invest in building up the business.

The Edinburgh and Londonbased bank, which opened in 2015 to service high net worth clients,sawincomeincreaseto £3.9 million during the year – a rise of 138 per cent – although that was offset by costs rising 30 per cent to £10.3m.

Loans to clients grew by 96 per cent to £94.2m and deposits by 35 per cent to £194.6m. Operating losses edged up 1.6 per cent to £6.4m.

Chief executive Graeme Hartop, who is a former managing director at Scottish Widows Bank, said that the losses were “entirely in accordance with our business plan”, and were to be expected by a new bank.

“The fact that our recent capital raising was oversubscribed demonstrates the justified confidence that our shareholders have in the long term prospects for the bank,” he said.

Increases in costs were down to factors including investment in new staff and premises.

“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,” said Hartop.

The bank was set up by chairman Ray Entwistle, a former chief executive of Adam & Company. 0 Graeme Hartop: Losses to be expected by new bank