According to UTB’s latest financial results, the growth was due to “successful strategic initiatives” supporting origination growth.
The report noted that its loan book grew by 12% year-on-year from £3.49bn in 2024 to around £3.9bn. This is despite “challenging market conditions and high levels of repayments”.
UTB said competition and pricing had “impacted second charge and buy-to-let volumes”, but its “continued digitalisation and strategic focus on quality lending, first-time buyers and professional landlords” positioned it well for “sustainable growth in 2026″.
It added that it saw a “substantial increase” in in volumes in its asset finance division, and building on this moment, it is launching Stance Asset Finance later this year.
UTB said property finance business saw a rise in lending balances despite higher repayments and a subdued housing market, and origination activity and the development of its Living Sector was “expected to drive further growth” in 2025.
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The company said it would build on this moment through “consistent hiring of experienced people and refinement of our product proposition”.
UTB’s profit before tax came to £78.7m in 2025, a drop from £86.4m. However, this was attributed to falling interest rates and heightened competition leading to “significant margin compression” and high provision levels.
The firm said the minority equity investment by Warburg Pincus completed in March strengthened its capital base and brought in strategic insight, sector expertise and global perspective to the bank.
In February, the firm also issued £50m of Additional Tier 1 Capital through its partner, UTB Partners, to several institutional investors.
Along with the Warburg Pincus investment, this enhances its “resilience and capacity to support customers, invest in technology and scales it[s] specialist lending propositions”.
Harley Kagan, UTB’s CEO, said: “The UK faced a challenging economic climate due to global trade tensions and domestic uncertainty ahead of the Autumn Budget. Although inflation fell and GDP growth was steady, high interest rates and low consumer confidence depressed the housing market.
“Against this backdrop, UTB delivered continued growth in lending, increased operating income and strengthened its capital base, underlining the resilience of its specialist business model and the strength of its customer relationships.
“The completion of the Warburg Pincus investment and £50m Additional Tier 1 capital issuance were important milestones that enhance our ability to grow. While higher provisions impacted profit before tax, our underlying performance remains strong, and we continue to invest in technology, people and product development to support sustainable, long-term success.”
Richard Murley, UTB’s chair, added: “Despite a complex economic environment, UTB has demonstrated discipline, resilience and strategic focus in 2025. With a strengthened capital base, the support of a new long-term shareholder and a clear strategy, the bank is well-positioned to deliver disciplined growth, enhance its customer experience and create enduring value for stakeholders in the years ahead.”
