Cambridge and Counties Bank delivers £310m gross lending in 2022

This was slightly down on the previous figure of £323m. 

Gross customer loan balances increased by six per cent annually to £1.05bn while its profit before tax rose by 54 per cent to £28.5m. 

The lender’s net interest margin improved to 4.5 per cent, up from 3.8 per cent in 2021 and its net interest income rose from £44m to £59m. 

Cambridge and Counties Bank’s commercial loan portfolio increased from £900m in 2021 to £942m in 2022. This comprises lending to commercial and residential investors as well as owner-occupied businesses to secure their own premises.  

The average loan to value (LTV) of its real estate finance book was flat at 56 per cent. 

The value of loans with up to three missed payments increased from £11.9m to £20.2m, while the value of loans in default fell from £28.5m to £27.4m. 

The lender had an impairment charge of £4.8m in 2022, which was £1.3m higher than 2021. It said this reflected £2.9m of balance write-offs, £100m of recoveries on previously written off accounts and new provisions of £2m. 

Its asset finance business increased by 31 per cent to £71m, while its car hire purchase and finance lease business rose 17 per cent to £42m. 

‘A forensic focus’

Patrick Newberry, chair of Cambridge and Counties Bank, said: “The key to the bank’s continuing success is a forensic focus on its chosen sectors of real estate lending and asset finance. Our strategy of servicing the market through well-managed relationships with brokers and borrowers continues to deliver strong growth and robust returns.  

“A key component of servicing those relationships is our smart manual underwriting supported by well-honed customer service and strong credit risk management models and tools.” 

Donald Kerr (pictured), CEO at Cambridge at Counties Bank, said: “We delivered an excellent financial performance this year benefitting from higher rates in this more uncertain environment.  

“As customers reassess investment priorities in this challenging macroeconomic environment, our focus continues to be on lending responsibly while also helping our customers navigate the challenges they face.” 

Staff and recruitment 

Cambridge and Counties Bank increased its staff numbers over the year due to growth and customer demand. It ended 2022 with 206 staff, compared to 183 in 2021. 

Its real estate finance team grew by a third and now has 31 members. 

The lender said it met its pledge to increase the number of women in senior management rles, and now has 32 per cent representation. Women account for 30 per cent of its board and a third of its executive committee. 

It aims to continue improving this, with a target of 40 per cent women representation at all levels of senior management by 2025. 

Newberry added: “Our performance would not have been possible without the commitment and hard work of our staff. Our team has moved on from the pandemic, returning to more normal working routines while taking advantage of the best of the hybrid working model.  

“I would like to pay a particular tribute to all of the team and to thank them for their unstinting efforts during the last year.”