Latest News from Hodge Bank

7th June 2017

Hodge reports record results

Cardiff-based Hodge, has announced its financial results for the financial year ended 31 October 2016. Combined pre-tax profits for the group exceeded £50 million, principally generated by its two financial services subsidiaries.

Hodge Bank, which specialises in commercial and later life lending recorded pre-tax profits of £22.8 million, driven primarily by excellent new business and fee levels in commercial lending.

Net interest income rose by 97% to £13.2 million and net operating income from trading activities rose by 86% to £14.3 million.

Hodge Life Assurance Company, which offers equity release and annuities under the Hodge Lifetime brand, made £27.4 million pre-tax, resulting from strong trading underpinned by a significant increase in pension annuity new business premiums which were 61% up on the previous year.

Group total assets exceeded £1.9 billion at the end of the financial year.

Keith James, Chairman of both companies said:

“It has been a tremendous year. Following the business’ move to One Central Square last September, and its rebrand to trade under the Hodge name, the group’s result has been underpinned by a record performance in both of our main businesses, and we have created a very strong platform for future growth”

David Austin, Group Managing Director noted:

“We are very proud of our 2016 results, and I’m grateful to our staff who have played an important part in this achievement. Nevertheless, we enter 2017 with a degree of caution.

The adoption of a new financial reporting regime has meant that market factors such as interest rates and house prices have a much greater influence on the reported outcome than previously, and whilst the effect has been favourable in 2016, our results will inevitably be more volatile in future.

However, the fundamentals underpinning our business remain strong and I have no doubt we can deal with the vagaries of market movements as they occur.”

The success of the Hodge group has enabled dividends to be paid to The Hodge Foundation, a charity supporting welfare, medical, academic and religious causes which owns 79% of the Hodge group.

By helping its customers to achieve their goals and being successful in its own right, the group assists the Foundation in meeting its charitable objectives.

1st March 2017

Respected City economist Roger Bootle to give annual Julian Hodge lecture

Roger Bootle

Roger Bootle

One of the City of London’s best-known economists, Roger Bootle will be the guest speaker at this year’s Julian Hodge Institute of Applied Macroeconomics annual lecture.

As the UK continues to digest the potential ramifications of Brexit, Mr Bootle will look across the Channel at the broader issues affecting our near neighbours in his lecture entitled “The Future of Europe”.

Roger Bootle is the founder and chairman of Capital Economics, one of the world’s largest economics consultancies. He is also an Honorary Fellow of the Institute of Actuaries and a Specialist Adviser to the House of Commons Treasury Committee. Roger is a regular columnist for The Daily Telegraph.

Roger has written several books, including his widely acclaimed latest, The Trouble with Europe, which examines how the EU needs to be reformed and what could take its place if it fails to change. It follows The Trouble with Markets, Money for Nothing and the prophetic The Death of Inflation, published in 1996. In July 2012 Roger and a team from Capital Economics won the Wolfson Prize.

The Julian Hodge Institute of Applied Macroeconomics was established 17 years ago in association with Cardiff Business School. Its aim is to carry out research into the UK economy and the UK’s relationship with other European economies. Its director is Professor Patrick Minford of Cardiff Business School, who is also the economic adviser to the Hodge group.

This year’s lecture takes place in Cardiff on 10th May.

1st March 2017

New student building backed by Hodge Bank

Iesis Group chief executive Iestyn Lewis (right) with Hodge Bank’s Gareth Davies, in Cumberland Street, Bristol, which is being converted into 86 apartments.

Work has started to convert into student accommodation five adjoining properties close to the centre of Bristol.

Empty for five years and formerly offices, 31-35 Cumberland Street has been bought by Iesis Group, the Bristol-based property and engineering company.

Due to be complete by September, the new building will provide high-quality, individual apartments for 86 students, behind the original grade two listed Victorian façade.

The development is being backed by Hodge Bank, which specialises in providing senior debt funding for real estate investors and developers.

The deal was negotiated by Gareth Davies on behalf of the bank. “We have a long-standing relationship with the Iesis Group and have watched it grow into a major property and engineering enterprise,” said Mr Davies.

“From its offices in Bristol and London, the group has developed a reputation for transforming complex and sensitive sites into attractive buildings across wide-ranging asset classes.

“Valued at £8m when complete, the Cumberland Street scheme will be the latest example of the group’s skill in taking derelict real estate and turning it into a building that meets today’s needs,” he added.

Iesis Group chief executive Iestyn Lewis said: “We are delighted to have secured this complex site and once again to be working with Hodge Bank.

“Cumberland Street represents an area undergoing significant positive change and our development will help preserve this important listed building for the long term.”