Specialist lender reports surge in profits
Cambridge & Counties Bank notched up its highest ever level of customer loans and deposits in 2022 – resulting in profits of £28.5m.
Gross customer loan balances at the Leicester-headquartered lender increased by 6% across the year to £1.055bn, while customer deposits rose to £1.103bn – and increase of 8% – with the bank delivering £310m in gross new lending for the year.
A strong balance sheet saw Cambridge & Counties’ profits surge by 54% compared to 2021. Its asset finance business, which helps businesses acquire essential assets such as equipment, plant, machinery or vehicles, grew by 31% to £71m, while dedicated finance for the purchase of classic cars and sports vehicles through hire purchase and finance lease products increased by 17% to £42m.
The bank also upped its headcount last year, with staff numbers rising from 183 to 206.
Donald Kerr, CEO of Cambridge & Counties Bank, said: “We continue to deliver against our strategic priorities to become the specialist SME Bank of choice for our customers and the finance brokers that serve them. Our focus on servicing their needs through a personal approach builds on our deep understanding of their requirements and is evidenced by the growing number of satisfied customers and broker partners: we continue to enjoy over 90% customer satisfaction.
“We delivered an excellent financial performance this year benefitting from higher rates in this more uncertain environment. As customers reassess investment priorities in this challenging macroeconomic environment, our focus continues to be on lending responsibly while also helping our customers navigate the challenges they face.”
The bank’s chair Patrick Newberry added: “The key to the bank’s continuing success is a forensic focus on its chosen sectors of real estate lending and asset finance. Our strategy of servicing the market through well-managed relationships with brokers and borrowers continues to deliver strong growth and robust returns. A key component of servicing those relationships is our smart manual underwriting supported by well-honed customer service and strong credit risk management models and tools.
“Our performance would not have been possible without the commitment and hard work of our staff. Our team has moved on from the pandemic, returning to more normal working routines while taking advantage of the best of the hybrid working model. I would like to pay a particular tribute to all of the team and to thank them for their unstinting efforts during the last year.”
