HAMPDEN & Co has underlined the appeal that its traditional banking approach holds for clients as it ramped up deposits and lending in its first full year of trading.

But the private bank, launched by former Adam & Co chief executive Ray Entwistle in 2015, made an operating loss of £6.3 million as it continued to invest heavily in start-up operations. Expenditure at the bank, which made a loss of £8.1m last year, totalled £7.9m amid continued investment in “systems, people and operational build”. It had spent £8.3m on set up costs in 2015.

Hampden, which became the first private bank to launch in the UK in 30 years after it received its licence two years ago, reported “steep growth” in deposits and lending in the year to December 31. Client deposits climbed to £143m from £30m, and with customer numbers now topping more than 2,000 have risen to £200m since year-end.

The bank notes in new accounts that it acquired more than 1,300 individuals and companies as clients from the Lloyd’s of London insurance market over the period, bringing with them £78.4m of deposits.

Lending to clients totalled £48.1m during the period, up from £11.8m the year before. That total has since increased to £76m since year-end.

Hampden & Co chief executive Graeme Hartop, who joined former Adam & Co colleague Mr Entwistle at the bank in 2015, said the accounts show the boutique lender is “making good progress.”

He noted: “We’re seeing a lot of good growth in the business, and that growth has continued into the first half of this year. [We are seeing] very good growth on both sides of the balance sheet.”

Asked whether Hampden’s growth reflected its stated aim of bringing a more personal touch to banking, Mr Hartop replied: “Absolutely. A lot of people are looking for that personal service. There is continued demand for that.”

The period saw Hampden make a succession of moves to add to its senior banking team, with that expansion continuing into its current year. The bank’s most recent senior hire was former Lloyds’ veteran George Grierson in March, who joined a team including Mark Prentice, Frank Hoskins, Malcolm King, Graeme Morris and David Bell. Mr Hartop said the bank, whose headcount is now in the “mid-70s” continues to look for talented bankers to join its roster. “We’re always on the look-out for good people to join us, he said.

“The very pleasing thing is there are so many good people looking to come and join us who are sending unsolicited CVs on to us because they are very keen to come and join a new and very exciting proposition in Edinburgh, and London for that matter too.”

The last week has seen the prospect of the Bank of England lifting interest rates move up the agenda, after chief economist Andy Haldane said he was minded to vote for a rise “relatively soon”. His views appeared at odds with Governor Mark Carney, who the day before had said “now is not the time” to begin raising rates.

Mr Hartop said he would be in favour of a gradual increase in rates.

“It would be helpful,” he noted. “The ultra-low rate environment is not helpful to any of us [banks]. Seeing that very gradual increase I think would be very helpful. But again, I think the timing of that is still very uncertain – Mark Carney obviously having one view and his chief economist Andy Haldane having a very different one. It is very difficult to judge at this stage.”

Meanwhile, Mr Hartop said he welcomed First Minister Nicola Sturgeon’s decision to “reset” the timetable for a second independence referendum, meaning that plans to hold the ballot before the spring of 2019 have effectively been abandoned.

The bank, which has offices in Edinburgh and London, had refused to rule out shifting its headquarters to the UK capital in the run-up to the 2014 referendum. Mr Hartop said “uncertainty is never good in the banking environment”.

He added: “Having that degree of certainty, for however long a period, is something that would be welcome.”