Cambridge & Counties Bank increased gross new lending by almost 50% in 2025, as demand grew across its real estate, asset finance and classic, vintage and sports car markets.
The Leicester-headquartered specialist lender to UK SMEs, property professionals and entrepreneurs reported gross new lending of £560 million for the year, up from £376 million in 2024.
Total loans and advances increased 20% to almost £1.5 billion, with double-digit growth recorded across real estate finance, asset finance and classic, vintage and sports cars.
Real estate finance balances rose by more than 15% to £1.21 billion, while the bank’s asset finance book grew 45% to £241 million. This included a record £46 million increase in classic, vintage and sports cars.
Customer deposits also reached a new high, rising by almost 30% to £1.63 billion.
Profit before tax increased 11% year on year to £39.7 million, while return on tangible equity rose to 13.9%. The bank said its cost of risk fell from 42 basis points in 2024 to minus 15bps, the lowest level since the bank launched in 2012.
The bank said its performance had been supported by relationships with commercial finance brokers. In real estate finance, the number of active brokers doing business with the bank increased by 31% year on year.
In asset finance, broker-led new business rose by 74% in 2025 to £140 million.
Donald Kerr, chief executive at Cambridge & Counties Bank, said: “2025 was a strongly positive, pivotal 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’.”
Rich Hanrahan, chief financial officer at Cambridge & Counties Bank, said: “Our performance in 2025 was driven by strong asset growth, disciplined cost control and continued investment into the business.
“One of our many achievements was delivering a historically low cost of risk. This contributed to our strong funding and capital base which in turn fuelled our high lending growth.
“We enter 2026 from a position of strength with a continued appetite to do even more business with SMEs and property investors.”
During 2025, the bank continued to invest in its digital capabilities, offices and employees. It opened a new office in Manchester and increased staff numbers to 248.
The bank also said it continued to build on its B Corp certification, with 2025 marking its second year as an accredited B Corp. It said it expected to be reaccredited in 2027 against the new B Corp standards.
In 2024, the bank received its first B Corp impact assessment, achieving an overall score of 92.8.
Patrick Newberry, chair of Cambridge & Counties Bank, added: “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.
“We believe that building a truly sustainable business which exerts a positive influence within the banking industry and local community makes good, long-term economic sense for us and our clients.”
