United Trust Bank (UTB) has reported solid growth across its specialist lending operations with its loan book rising 12% to just under £3.9bn in 2025 despite a challenging economic backdrop.
The bank’s latest Annual Report & Accounts show operating income increased 7% to £176m for the year ended 31 December 2025, while operating profit before impairments reached £92.3m.
Gross new lending totalled £1.98bn during the year, underlining continued demand for specialist funding across the bank’s core markets, including property finance. Customer deposits also rose strongly, increasing 13% to £3.8bn as the bank expanded its savings propositions and launched a new deposit onboarding platform.
However, profit before tax fell to £78.7m, down from £86.4m in 2024, after higher impairment charges linked to parts of its property portfolio. Return on equity also moderated to 14.1%.
INCREASED COMPETITION
The bank said its performance reflected the resilience of its specialist lending model in a market shaped by higher interest rates, subdued housing activity and increased competition.
During the year, UTB also strengthened its capital position to support future lending growth. In March 2025, private equity firm Warburg Pincus completed a minority investment in the bank, providing additional capital and strategic support as UTB moves into its next phase of development.
The lender also issued £50m of Additional Tier 1 capital through its parent company, UTB Partners, to institutional investors.
CHALLENGING CLIMATE
UTB CEO Harley Kagan says: “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.”
TECH, PEOPLE AND PRODUCT
He adds: “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.”
DISCIPLINE AND RESILIENCE
UTB Chair Richard Murley says: “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.”
Read United Trust Bank’s Annual Report and Accounts for the year ended 31 December 2025 HERE.
