Heritable Bank has announced its 2005 pre-tax operating profits were up 93% on the previous year, as the property finance specialist’s parent company unveiled record pre-tax profits of £310 million and asset growth to £12.9 billion*.
Heritable Bank also saw asset growth of 71% to £627 million and gross new loan advances rise 38%. This considerable growth coincided with further development of the bank’s range of offerings, including the acquisition of Key Business Finance Corporation, a specialist provider of financing to the legal profession and the start up of an asset financing business.
Mark Sismey-Durrant, ceo of Heritable Bank, said: “Our stated strategy of organic growth and acquisition has been extremely effective through 2005 delivering significant growth in assets and profitability. We will continue to seek opportunities to grow our core businesses as well as diversifying into new specialist markets.
“Our reputation has been enhanced as the bank for serious property investors. We forecast another good year ahead for buy-to-let investors and property developers. In addition, our customer deposit products offer consistently competitive interest rates and grew by 61% to £495 million.”
Ketan Malde, finance director of Heritable Bank, added: “We have delivered both double digit asset and earnings growth to our shareholder whilst reducing the cost/income ratio to 37%. The pre tax operating return on equity was a satisfactory 27%.”
