C. Hoare & Co., the UK’s oldest bank recorded pre-tax profits of £23.94 million for the year to 31 March 2018, according to its latest annual report and accounts.
This was £44.85 million or 63.36 percent lower than the £70.78 million registered for the year to 31 March 2017.
The 2017 result, however, reflected the impact of the sale of the bank’s wealth management business to Cazenove.
Ignore the impact of this and the bank’s continuing operations delivered a pre-tax profit of £28.82 million, an £11.18 million or 38.81 percent increase on the £17.63 million recorded for the previous year.
Total income from continuing operations amounted to £105.49 million, a £12.63 million or 13.60 percent increase. This mainly reflected an £9.50 million or 12.81 percent increase in net interest income from £74.17 million to £83.67 million.
Net fee and commission income from continuing operations came in at £13.16 million, a small increase on the £13.41 million registered for the previous year.
Total operating expenses from continuing operations amounted to £73.97 million, a £3.42 million or 4.42 percent reduction on the £77.39 million recorded for the year to 31 March 2017.
As a consequence the cost income ratio amounted to 70.12 percent and the pre-tax profit margin 27.31 percent.
Credit quality on the bank’s loan book remained good according to its strategic report and the loan impairment charge as a proportion of the loan book amounted to 0.2 percent. It was, however, necessary to increase the loan impairment provision to £2.74 million due to the impact to collateral of lower property prices in specific segments of the lending portfolio.
Customer deposits increased by 4.47 percent from £3.87 billion to £4.05 billion.
Customer lending grew by 6.4 percent to £1.66 billion or 40.98 percent of deposits.
“The growth in the loan book was in line with our expectations and was largely driven by our fixed rate and term facilities,” said David Green, C. Hoare’s chief executive in his strategic report. “We continue to see a good pipeline of new loans.”