Client growth was driven by the demand for personalised banking and lending following introductions from existing clients, professional advisors and mortgage brokers, as well as clients transferring from other private and mainstream high street banks. Business introduced by mortgage brokers was up 39 per cent, more than double the growth seen in 2022, the firm said in a statement.

Hampden & Co also recorded profit before tax of £9.1 million ($11.55 million) in 2023, compared with £2 million in 2022.

The bank said there was strong demand for borrowing – including residential, retirement-interest only, buy-to-let and self-build mortgages – and saw total lending rise 9 per cent to £488 million. Deposits increased 8 per cent to £858 million, with term accounts seeing net inflows of £142 million as savers took advantage of higher rates.

The growth in new business introduced by mortgage brokers was driven by strong demand for high-value, often complex loans as interest rates stabilised. Credit quality also remains strong, the firm added.

Retirement interest-only mortgages were consistent year-on-year at £8.7 million, according to the bank. Self-build mortgages increased 14 per cent. Retirement interest-only mortgages allow people to raise funds against their principal property for a range of purposes, including managing estate planning in relation to inheritance tax liabilities.

To meet the increased demand and deliver a personalised service, the bank said it increased the number of employees by almost a quarter to 154.

Key hires included industry veteran Mark Plummer, who joined as head of private banking, London, Patrick Preece who joined as banking director in its London office, and Claire Mann who joined as head of client propositions, the firm continued. The bank said it also invested in its dedicated mortgage intermediary team with the appointment of Martin Hillyer as intermediary relationship director.

“In an environment where interest rate rises have encouraged people to use savings to pay down debt, the bank grew both deposits and lending in 2023,” Graeme Hartop, CEO, Hampden & Co, said. “The high volume of referrals from other advisors, including wealth managers, solicitors, accountants and mortgage brokers was further positive endorsement of the bank, our staff and our ability to work in partnership with these other professionals.”