United Trust Bank reports 21.9% increase in operating income to £61.2m
United Trust Bank (UTB) has reported a 21.9% increase in operating income for the year ending 31 December 2018.
The results demonstrate another year of sustained growth at the specialist bank which increased its profit before tax to £31.4m, more than double its 2015 level. The Bank’s loan and deposit books each exceeded £1bn for the first time in 2018.
2018 highlights include:
Loan book grew by 20.0% to £1.034bn
Operating income increased by 21.9% to £61.2m
Profit before tax increased by 19.3% to £31.4m
Return on Average Equity was 22.3%
UTB is a leading specialist bank providing a wide range of secured property and asset finance facilities to individuals and businesses, and deposit accounts for individuals, businesses and charities.
The Bank continued to expand and diversify its operations during 2018 with the launch of a new Motor Finance division, the introduction of additional mortgage products including first charge loans and the provision of UTB savings products through Hargreaves Lansdown’s innovative Active Savings platform.
United Trust Bank chief executive officer, Graham Davin, commented:
“United Trust Bank has performed extremely well in 2018 despite considerable economic and political uncertainty and I am very pleased to report another strong set of results.
“The increase in profits was driven by further growth in lending and deposits, with both books exceeding £1bn, combined with good cost management. A reduction in the cost income ratio from 45.4% to 43.9%, despite the costs associated with the creation of the new Motor Finance division, reflects increasing scale effects throughout the business and most particularly the Mortgage division. We expect this ratio to continue to fall as scale increases further and we invest in systems to improve efficiency. The key measure of return on average equity remains strong at 22.3%.
“Notwithstanding the economic and political headwinds, we are planning for another year of growth and solid returns. We operate in large growing markets where the clearing banks are less active. We have experience of developing and building business units and of collecting loans in less benign markets. We also benefit from having a balanced, experienced and highly effective team.
“On behalf of the board and management team, we extend our thanks to our customers and brokers for their support and to all our staff, across all departments, for their contribution towards achieving these results. It is the staff’s dedication, consistent hard work, focus and passion for getting things right that makes the Bank what it is. It is a privilege to work with such a talented team.”
United Trust Bank’s Annual Report and Accounts for the period ending 31st December 2018 have now been published and placed on UTB’s website at: