Results for the year ended 31 December 2017
Highlights
- Pre-tax profit on continuing activities increased to £9.9m (2016: £4.4m)
- Lending assets increased by 36% to £632.3m (2016: £463.5m)
- Customer deposits increased by 14% to £596.3m (2016: £523.3m)
- Customer numbers increased by 20% to 19.6k (2016: 16.3k)
Hampshire Trust Bank has reported a pre-tax profit on continuing activities of £9.9m for the year ending 31 December 2017, a £5.5m increase compared to 2016.
Lending assets at the specialist bank increased by 36% to £632.3m (2016: £463.5m) and customer deposits by 14% to £596.3m (2016: £523.3m). In addition, the bank announced that customer numbers increased to 19,600, a 20% increase on numbers at the end of 2016.
The announcement follows the appointment of Matthew Wyles as the bank’s new Chief Executive Officer on 23 April 2018.
Matthew Wyles said:
“The bank delivered a strong financial performance in 2017 with solid growth across the board. Whilst obviously our business needs to grow further, we will continue to focus on ensuring that this growth is controlled and sustainable.”
“Central to our mission is to deliver consistently positive customer experience and outcomes. To this end we will invest relentlessly in our infrastructure, processes and technology to ensure that the business is standing on a stable, flexible and scalable platform.”
Our developing franchise in the markets we serve will rely on a strategy of differentiation through excellence and expertise. This means that the quality, commitment and capabilities of our people are central to our future success and we will position the bank as a magnet for the brightest and best.
Each of Hampshire Trust Bank’s specialist SME lending businesses delivered significant growth:
- Asset Finance loan book increased to £154.1m (2016: £112.1m)
- Block Discounting, part of Asset Finance, loan book increased to £62.9m (2016: £41.7m)
- Property Finance loan book increased to £222.5m (2016: £207.5m)
- Specialist Mortgages loan book increased to £192.6m (2016: £101.3m)
Key financial and performance information:
- Total assets increased by 22% to £742.3m (2016: £606.7m)
- Originations grew by 21% to £478.3m (2016: £396.6m)
- Return on equity (post tax) on continuing activities of 9.3% (2016: 5.4%)
- Net interest margin of 5.06% (2016: 5.47%)
- Cost income ratio of 58% (2016: 74%)
- Common equity Tier 1 ratio of 21% (2016: 17%)
Continuing activities – excludes Commercial Finance asset-backed lending. During 2016, Hampshire Trust Bank discontinued and withdrew from the asset-backed lending market as it no longer met the bank’s criteria for strong risk adjusted returns and sustainable growth.