UTB reports £1.9bn gross new lending in 2022

According to its latest results, gross new lending surpassed figures in 2021 and 2020 of around £1.4bn and £1.3bn respectively.

The firm said that growth was driven by “good origination levels”, normalised loan repayment activity post-Covid and utilization of the government’s Recovery Loan scheme.

UTB added that on the mortgage side it had seen “high demand” for first charges, with origination volumes closing in on its more established second charge business.

It continued that growth in second charge was “helped by growth in this specific market”, and that its buy-to-let suite of products was “well-received”.

UTB said the “mortgage market remains a growth opportunity” for the bank.

The lender added that asset finance was “particularly buoyant market” in the first half of the year with record levels of new business.

Its asset finance platform, which went live at the start of this year, also provides a “solid platform for further growth in the areas” and enhanced the customer and broker experience.

UTB’s profit before tax came to £60.2m, an increase of 35 per cent, which it said was due to its strong loan book growth and stable net interest margin.

The lender’s loan book at year end came to £2.4bn, which is up from £1.8bn and £1.6bn in 2021 and 2020 respectively. This growth was driven by new business volumes.

Staff numbers grew 17 per cent year-on-year to 359.

UTB’s chief executive Harley Kagan (pictured), said: “Consumers and businesses have had a lot to contend with over the last year and the outlook for 2023 looks equally challenging. Higher inflation, energy prices and borrowing costs are putting a lot of pressure on household and corporate finances, and we have to be mindful that the consequences of those pressures are likely to worsen.

“Our people have had to deal with a lot of change in 2022, much of this due to the Bank’s growth, emerging from the pandemic, and the volatile markets. These impressive results would not have been possible without the dedication of our staff who have collectively delivered on every measure.”

He continued: “Their resilience and tenacity, together with the skilled leadership of the Bank’s senior management team, have driven this strong performance and we can look to the future confident that we can overcome any challenges which lie ahead.

“I would like to congratulate and thank all our people for their contributions and also thank our customers and broker partners for their continued support.”