Hampden & Co announces results for H1 2020
- Income up 16% - continued strong balance sheet growth despite Covid-19 impact and base rate headwinds
- Successful £7m capital raise, Simon Miller takes over as chair and further strengthening of London and Edinburgh banking and management teams
Hampden & Co plc, the private bank, has announced continued strong growth in lending and deposits in the first half of 2020. Despite the headwinds of Covid-19, the lockdown and the reduction of UK base rates to historic lows, the bank grew its deposits by £82 million (+24% vs 30th June 2019) and lending by £94 million (+61% vs 30th June 2019), and continues to build its client base. Overall, this translated to income growth of 16% compared to the same period last year.
The first half of 2020 saw the bank transition rapidly to remote working during Covid-19 lockdown, remaining fully open for business and maintaining a focus on high levels of client service while supporting a range of clients by providing liquidity and refinancing loans. The bank completed a successful £7 million capital raise in accordance with its capital plan, Simon Miller took over from Alex Hammond-Chambers as chairman at the AGM in May, and the banking and management teams in Edinburgh and London were further strengthened by a series of appointments. A dedicated business unit supporting mortgage intermediaries in the high net worth sector was launched during the first half and the bank is set to expand its range of mortgage services later this month. The second part of the planned 2020 capital raise will take place in the fourth quarter to support balance sheet growth, with all shareholders having the opportunity to invest on terms expected to be similar to the earlier capital raise.
CEO, Graeme Hartop, said: “The extraordinary circumstances of the last few months have been challenging for all of us, but I’m very pleased with the way we have supported our clients in this environment, with our expert team working closely with clients to mitigate the economic impact and to help them navigate difficult times. Our systems and processes have allowed us to operate effectively throughout lockdown, at a time when many banks have been forced to reduce their levels of service. We continue to strengthen our banking teams in Edinburgh and London to keep pace with our growth.”
Hartop added “We are continuing to attract new clients who value the bespoke, relationship-driven way we do business, and we will shortly be launching a retirement mortgage product designed to give our older clients greater flexibility for their borrowing needs.”