HTB office

Challenger bank posts first annual profit since relaunch




Specialist challenger Hampshire Trust Bank (HTB) has reported its first annual profit since relaunching in 2014.

The bank posted a pre-tax profit on continuing activities of £4.4m for the year ended 31st December 2016, up from a loss of £3.1m in 2015.

Lending assets also rose by 161% to £463.5m, with HTB’s property finance loan book more than doubling to £207.5m, while its commercial mortgages division – which commenced operations in April 2016 – grew its loan book to £101.3m.

“2016 was a landmark year for the bank,” said Mark Sismey-Durrant, chief executive officer at Hampshire Trust Bank.

“We achieved a full year of profits in only our second full year of trading since relaunch under new ownership.

“We earned strong interest margins on continuing operations and our continued focus on asset quality has resulted in each of our specialist lending lines achieving significant and profitable growth.”

HTB’s asset finance loan book increased to £112.1m, up from £56.1m the previous year.

The bank discontinued and withdrew from the asset-backed lending market in 2016, as it no longer met the bank’s criteria for strong risk-adjusted returns and sustainable growth.

Elsewhere, HTB’s savings customers increased by 134% to over 11,000 during 2016, while customer deposits almost trebled to £523.3m.

Retail and business deposits have provided the bank with a reliable and low cost means of funding the business.

“We are confident that 2017 will be another significant year of strong delivery for the bank,” added Mark.

“Our focus will be on driving greater scale, improving operational efficiency and in further enhancing the experience of our customers.

“We remain committed to creating a specialist bank to be proud of, delivered by experts with high aspirations for delivering great customer service and strong shareholder returns.

“We are well on our way to delivering this vision.”

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