Cambridge & Counties Bank sees near 50% rise in lending to £560m in 2025

Cambridge & Counties Bank has reported a standout financial performance for 2025, with gross new lending rising almost 50% year-on-year to a record £560 million.

The Leicester-headquartered bank delivered growth across all core markets, reflecting its continued focus on supporting SMEs, property professionals and entrepreneurs through tailored lending and strong broker relationships.

Total loans and advances increased by 20% to nearly £1.5 billion by the end of 2025, with double-digit growth recorded in Real Estate Finance, Asset Finance and Classic, Vintage & Sports Cars (CV&S).

Real Estate Finance balances rose more than 15% to £1.21 billion, while the Asset Finance book surged by 45% to £241 million. Within this, the CV&S segment saw a record £46 million increase, highlighting continued appetite for specialist lending and the bank’s investment in service and technology.

The bank’s close partnerships with commercial finance brokers played a significant role in its performance. Active broker numbers in real estate lending grew by 31%, while asset finance saw a 74% increase in broker-led new business, reaching £140 million.

Donald Kerr, CEO at Cambridge & Counties Bank, described 2025 as a “pivotal year” for the organisation:

“2025 was a strongly positive year for the bank, delivering a substantial level of support for our customers while growing our own teams and trusted networks of finance brokers. We enter 2026 with a higher quality capital base and strong liquidity ratios, and deeply committed to our stated, long-term strategic purpose as the ‘specialist SME bank of choice’.”

Profit before tax rose 11% to £39.7 million, while return on tangible equity increased to 13.9%. Customer deposits also reached a new high, climbing nearly 30% to £1.63 billion.

Meanwhile, the bank achieved its lowest ever cost of risk, falling from 42 basis points in 2024 to minus 15 basis points, reflecting strong credit performance and disciplined risk management.

Rich Hanrahan, CFO at Cambridge & Counties Bank, highlighted the drivers behind the results:

“Our performance was driven by strong asset growth, disciplined cost control and continued investment into the business. Delivering a historically low cost of risk has contributed to our strong funding and capital base which in turn fuelled our high lending growth. We enter 2026 with a continued appetite to do even more business with SMEs and property investors.”

During the year, the bank continued to invest in its digital capabilities, office footprint and workforce, opening a new Manchester office and increasing headcount to 248 employees.

It also built on its B Corp accreditation, achieving a strong impact assessment score of 92.8 and positioning itself for reaccreditation under updated standards in 2027.

Patrick Newberry, Chair of Cambridge & Counties Bank, said the bank’s strategy of targeted lending and operational investment had been key:

“We successfully executed our strategy in 2025 of supporting experienced property investors via a segmented rather than one-size-fits-all approach, while expanding our Asset Finance capabilities and support for UK businesses. In our principal product areas, we deployed technology to improve speed and efficiencies, making it easier and quicker to deliver finance to our customers, while continuing to invest in our base of fantastic employees.”

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