United Trust Bank reported operating income of £176m for the year to 31 December 2025, up 7% on the previous year, as lending volumes continued to rise in what it described as a challenging economic backdrop.
The specialist lender grew its loan book by 12% to just under £3.9bn by the year end, while gross new lending reached £1.98bn.
Operating profit before impairment charges stood at £92.3m, with profit before tax falling to £78.7m from £86.4m in 2024, reflecting higher impairment charges in parts of its property portfolio.
Total customer deposits increased by 13% to £3.8bn, supported by growth across retail, SME and charity savings accounts, alongside the launch of new products and a deposit onboarding platform. Return on equity moderated to 14.1%.
The bank said it had continued to operate comfortably above regulatory capital requirements throughout the year, further bolstered by external investment and capital issuance.
CAPITAL STRENGTHENED THROUGH NEW INVESTMENT
A minority equity investment by Warburg Pincus completed in March 2025, providing additional long-term backing and strengthening the bank’s capital base. United Trust Bank said the new shareholder had contributed strategic insight and sector expertise as the lender refines its priorities for its next phase of development.
In February 2025, the bank also issued £50m of Additional Tier 1 capital through its parent, UTB Partners, to a number of institutional investors. It said the combined capital injections enhanced its resilience and capacity to support customers, invest in technology and scale its specialist lending activities.
RESILIENCE IN A SUBDUED MARKET
Harley Kagan, chief executive officer at United Trust Bank, 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, chair of United Trust Bank, 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.”
