Hampden Bank sticks to profits target despite fall – Daily Business

Tracey Davidson: position of strength

Hampden Bank chief executive Tracey Davidson is sticking to her £20 million profit target despite a second successive annual fall.

Profit before tax at the Edinburgh-based private bank came in at £7 million, down from £8.2m in 2024 and £9.1m in 2023, as interest rates fell faster than forecast and it invested in expanding its operations.

Ms Davidson is putting her faith in a growing team and a client base that leapt by 7% to almost 6,500 during 2025.

Client deposits also increased, from £991m to £1.12 billion. Loans and advances rose from £586m to £640m, while total income edged up slightly from £30.3m to £31.5m.

The bank followed up the 2025 dividend with proposed a 5% increase for this year.

Its 10th anniversary year was marked by the opening of an office in Manchester and moves into new offices in Edinburgh and London. It now has 162 staff.

Ms Davidson said: “Our strategy sets out a vision for a sustainable, growing private bank, recognised for the quality of its client relationships, the strength of its risk management, and the professionalism of its people, all of which are vital to deliver on our strategic ambition to generate in excess of £20m of annual profit before tax by 2030.

“Whilst economic and geopolitical uncertainties are likely to persist, the bank enters its next phase of growth from a position of strength – we have a clear strategic direction, a resilient business model, a growing and loyal client base, and a committed team of talented colleagues.”

David Huntley, who became chair in September, replacing Simon Miller on his retirement, commented: “The year witnessed several important milestones, including the bank’s first decade in business, surpassing £1 billion in deposits, expansion into the north and Midlands with the addition of a new banking team and significant new office upgrades in both Edinburgh and London.”

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