UTB delivers 7% growth in income and 12% loan book growth to £3.9bn in 2025

United Trust Bank (UTB) has reported a resilient financial performance for the year ending 31 December 2025, delivering growth in both operating income and lending while strengthening its capital base despite a challenging economic environment.

According to the bank’s 2025 Annual Report and Accounts, operating income increased by 7% to £176 million, while its loan book expanded by 12% to reach just under £3.9 billion by the end of the year.

UTB generated £1.98 billion in gross new lending during the year, with operating profit before impairment charges reaching £92.3 million. Profit before tax came in at £78.7 million, lower than the previous year’s £86.4 million after higher impairment charges in parts of the property portfolio. The bank reported a return on equity of 14.1%.

Customer deposits also continued to grow strongly, rising 13% to £3.8 billion. The increase was driven by expansion across retail, SME and charity savings accounts, alongside the introduction of new savings products and a new digital deposit onboarding platform aimed at improving the customer experience.

Throughout the year the bank maintained a capital position comfortably above regulatory requirements. In March 2025, UTB completed a minority equity investment from Warburg Pincus, which has strengthened the bank’s capital base and provided strategic input as it enters its next phase of development. The private equity firm’s involvement has also helped refine UTB’s strategic priorities, supporting the lender’s focus on disciplined growth, operational efficiency and long-term value creation.

Earlier in the year, UTB also issued £50 million of Additional Tier 1 capital through its parent company, UTB Partners, to a number of institutional investors. Combined with the Warburg Pincus investment, the new capital is intended to enhance the bank’s resilience and expand its capacity to support customers, invest in technology and scale its specialist lending activities.

Chief executive Harley Kagan said the bank had delivered solid results despite economic uncertainty and pressure in the housing market.

“The UK faced a challenging economic climate due to global trade tensions and domestic uncertainty ahead of the Autumn Budget,” he said. “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.”

He added that the completion of the Warburg Pincus investment and the £50 million Additional Tier 1 capital issuance represented key milestones for the bank. While higher provisions affected profit before tax, Kagan said the bank’s underlying performance remained strong as it continued to invest in technology, staff and product development.

UTB chair Richard Murley said the bank had demonstrated discipline and strategic focus throughout the year.

“Despite a complex economic environment, UTB has demonstrated discipline, resilience and strategic focus in 2025,” he said. “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.”