Staff at Hodge Bank, the only bank headquartered in Wales, are celebrating after it reported record results for the year ending 31 Oct 2016.
Combined pre-tax profits for the group exceeded £50m during 2016, mainly generated by its two financial services subsidiaries.
Hodge Bank, which specialises in commercial and later life lending recorded pre-tax profits of £22.8m, driven primarily by excellent new business and fee levels in commercial lending.
Net interest income rose by 97% to £13.2m and net operating income from trading activities rose by 86% to £14.3m.
Hodge Life Assurance Company, which offers equity release and annuities under the Hodge Lifetime brand, made £27.4m pre-tax, resulting from strong trading underpinned by a significant increase in pension annuity new business premiums which were 61% up on the previous year.
Group total assets exceeded £1.9bn at the end of the financial year.
Keith James, chairman of both companies, said: “It has been a tremendous year. Following the business’ move to One Central Square last September, and its rebrand to trade under the Hodge name, the group’s result has been underpinned by a record performance in both of our main businesses, and we have created a very strong platform for future growth.”
David Austin, group managing director, added: “We are very proud of our 2016 results, and I’m grateful to our staff who have played an important part in this achievement. Nevertheless, we enter 2017 with a degree of caution.
“The adoption of a new financial reporting regime has meant that market factors such as interest rates and house prices have a much greater influence on the reported outcome than previously, and whilst the effect has been favourable in 2016, our results will inevitably be more volatile in future.
“However, the fundamentals underpinning our business remain strong and I have no doubt we can deal with the vagaries of market movements as they occur.”
The success of the Hodge group has enabled dividends to be paid to The Hodge Foundation, a charity supporting welfare, medical, academic and religious causes which owns 79% of the Hodge group.
By helping its customers to achieve their goals and being successful in its own right, the group assists the Foundation in meeting its charitable objectives.
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