“We are certainly becoming a very significant player in the private banking market,” the chief executive of Hampden & Co told thewealthnet.
Speaking after the firm reported strong 2021 results yesterday (20/04/22), Graeme Hartop said he was delighted with the progress the bank had made since its inception in 2015.
“It has been a very interesting time… but it has become really apparent that there is still strong demand for proper, relationship driven private banking,” he said.
This is exactly what the bank delivers. While many firms are looking to branch out into investment management and wealth planning, Hampden & Co only offers traditional banking services for high net worth clients.
Explaining the rationale behind this decision, Mr Hartop said: “We felt we could provide a really top class private banking service. But, as soon as you start offering lots of other services, inevitably it is very difficult to provide a ‘grade A’ service across a whole range of professional services.”
The bank’s results certainly suggest there is demand for this kind of service, having recorded a 29 percent increase in income in 2021. The £13.2 million reported income is Hampden & Co’s highest figure to date.
Mr Hartop attributed this increase to the overall growth of the business, which saw significant increases in loans and deposits during the year.
Deposits from clients rose 39 percent from £501 million to £696 million, while loans and advances were up 29 percent from £326 million to £422 million.
This was the result of both an influx of new clients and existing clients depositing larger sums and using more services.
The firm has increased its range of services in the past year. For example, Hampden & Co now has a new retirement mortgage service, a self-build mortgage and has developed financing for eco-friendly home and renewable energy initiatives.
Looking forward, Mr Hartop believes the predicted rise in interest rates should add “a bit of a tailwind” to earnings in 2022. However, he remains focused on growth.
He said the bank will continue to add to its headcount to allow it to keep scaling and developing its offering.
“I am very pleased with the calibre of people who want to join.” This has been demonstrated by its recent hires of Colin Tate who joined from Sainsbury’s Bank as chief operating officer; and Ryan Beattie who joined as a banking director from Adam & Company.
Despite the obvious challenges, Mr Hartop was keen to stress he remains optimistic about the year ahead and can see lots of opportunities for Hampden & Co to continue growing.
