Edinburgh and London-based private bank Hampden & Co said its profit before tax rose to £9.1 million in 2023 from £2 million in 2022 and an inaugural dividend is being recommended by its board.

Strong demand for borrowing – including residential, retirement-interest only, buy-to-let and self-build mortgages – saw total lending at Hampden & Co rise 9% to £488 million.

Deposits at the private bank increased 8% to £858 million, with term accounts seeing net inflows of £142 million as savers took advantage of higher rates.

Launched in 2015, Hampden & Co said its new client numbers increased by almost a fifth in 2023 to finish the year at a new high of 5,598.

“Client growth was driven by demand for personalised banking and bespoke lending following introductions from existing clients, professional advisers and mortgage brokers, as well as clients transferring from other private and mainstream High Street banks,” said the private bank.

“Business introduced by mortgage brokers was up 39%, more than double the growth seen in 2022 (16%).”

To meet the increased demand and deliver the personalised service expected, the bank grew the number of employees by 23% 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 the bank’s London office; and Claire Mann, who joined as Head of Client Propositions.

The bank also invested further in its dedicated Mortgage Intermediary team with the appointment of Martin Hillyer as Intermediary Relationship Director.

Hampden & Co CEO Graeme Hartop said: “Our accessible and personalised approach to banking is valued by our existing clients and has attracted many new clients.

“It shows that many people, including high-net-worth and affluent customers of High Street lenders, appreciate the benefits of relationship banking …

“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.

“The high volume of referrals from other advisers, 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.”