Corporate News

Castle Trust Bank has published its latest financial statement, as at 30 September 2023. The full detail of the statement can be found in the FY 30 Sept 2023 CTB Financial Statements and you can download a copy of the following summary of Castle Trust Bank's Financial Strength here.

2023 saw the Bank of England continue to increase interest rates up to 5.25%, to help drive down inflation from its October 2022 high of 11.1%. Despite these economic challenges, it is encouraging that Castle Trust Bank once again delivered an increase in annual profit.

The Group is strongly capitalised with total equity of £113.5 million, total assets of £953.9 million and liquid assets of £150.2 million. In the financial year to September 2023, Castle Trust Bank made a profit before tax of £11.4 million.

Castle Trust Bank continues to enhance its ability to offer a greater range of services to both our savers and our borrowers. We are an award-winning provider of savings, mortgage and consumer lending products, employing over 200 people across our offices in Basingstoke and London. Our principal shareholder is the leading private equity firm J.C. Flowers & Co., which currently manages circa $4 billion in assets.

Savings
As at 30 September 2023, our c22,000 customers held just under £827 million of fixed term, fixed rate savings with us.

Lending
As at 30 September 2023, Castle Trust Bank’s total property finance loan book stood at £549 million. A shift of focus towards Bridging to enable property purchases, and light and heavy refurbishments during the year, together with continued Term lending for the Buy to Let market, proved to be very successful.

Retail Finance
Working with over 2,200 partner retailers and 164,000 customers, as at 30 September 2023 the retail finance loan book for Omni Capital Retail Finance (‘Omni’) stood at over £226m.

Richard Pym, Chair of Castle Trust Bank, retired on 1st April, and has been replaced by Ken Stannard who has been an Independent Non-Executive Director on our Board since July 2022.

Martin Bischoff, CEO said "I’d like to offer a particular thank you to our outgoing Chair Richard Pym for his support and guidance over the past three years. He has played a pivotal role in our growth, particularly during our conversion to a bank in 2020, and leaves us in a strong position for the future. I’m delighted that Ken Stannard will be our new Chair; his vast experience, and extensive record of success makes him the natural choice and will help ensure we deliver our ambitious growth plans." 

Richard Pym said:
“When I joined Castle Trust Bank in March 2020 it was about to gain a new banking licence and over the last three years it has successfully grown into a mature and profitable bank. So after three years chairing the board I am now retiring, and with more wrinkles and less hair it is time to hand over to Ken Stannard, a very experienced banker, to continue the journey. I wish Ken, Martin and all the team at Castle Trust every success in the future.”

Ken Stannard added:
“I am excited to become the new Chair of Castle Trust Bank. We have a track record for risk management, delivery and innovation. Our owners are very experienced and hugely supportive, and our plans are ambitious. I am proud to be part of a bank that has such talented colleagues, and which puts the customer right at the heart of everything it does.

“I’d like to pay tribute, and say thank you, to Richard as our outgoing Chair. He has overseen tremendous progress over the past three years, and leaves us with a strong platform on which to deliver our ambitious plans for the future.”

Castle Trust Bank has published its latest financial statement, as at 30 September 2022. The full detail of the statement can be found in the FY 30 Sept 2022 CTB Financial Statements and you can download a copy of the following summary of Castle Trust Bank's Financial Strength here.

Hot on the heels of Brexit and the pandemic, 2022 saw further economic turmoil caused by the conflict in Ukraine, with both interest rates and inflation rising significantly during the year. Despite these challenges, it is encouraging that Castle Trust Bank once again delivered an increase in annual profit.

The Group is strongly capitalised with total equity of £104 million, total assets of £846 million and liquid assets of £151 million. In the financial year to September 2022, Castle Trust Bank made a profit before tax of £10.1 million.

Castle Trust Bank continues to enhance its ability to offer a greater range of services to both our savers and our borrowers. We are an award-winning provider of savings, mortgage and consumer lending products, employing over 200 people across our offices in Basingstoke and London. Our principal shareholder is the leading private equity firm J.C. Flowers & Co., which currently manages circa $5 billion in assets.

Savings
As at 30 September 2022, our c19,000 customers held just under £725 million of fixed term, fixed rate savings with us.

Lending
As at 30 September 2022, Castle Trust Bank’s total property finance loan book stood at £458 million. A shift of focus towards Bridging to enable property purchases, and light and heavy refurbishments during the year, together with continued Term lending for the Buy to Let market, proved to be very successful.

Retail Finance
Working with over 2,200 partner retailers and 160,000 customers, as at 30 September 2022 the retail finance loan book for Omni Capital Retail Finance (‘Omni’) stood at over £210m.

Castle Trust Bank has published its latest financial statement, as at 30 September 2021. The full detail of the statement can be found in the FY 30 Sept 2021 CTB Financial Statements and you can download a copy of the following summary of Castle Trust Bank's Financial Strength here.

The UK is still reshaping its economy following its withdrawal from the European Union and dealing with the consequences of the pandemic. Against this background of uncertainty, it is encouraging that Castle Trust Bank has delivered another increase in annual profit.

The Group is strongly capitalised with total equity of £95.2 million, total assets of £666.5 million and liquid assets of £76.9 million. In the financial year to September 2021, Castle Trust Bank made a profit before tax of £3.6 million.

Castle Trust Bank continues to enhance its ability to offer a greater range of services to both our savers and our borrowers. We are an award-winning provider of savings, mortgage and consumer lending products, employing over 200 people across our offices in Basingstoke and London. Our principal shareholder is the leading private equity firm J.C. Flowers & Co., which currently manages circa $5 billion in assets.

Savings
As at 30 September 2021, our c20,000 customers held just under £560 million of fixed term, fixed rate savings with us.

Lending
As at 30 September 2021, Castle Trust Bank’s total property finance loan book stood at over £398 million. The availability of the TermTen product which combines fixed rates and refinance options, and the Bridge to Let option which combines a bridging loan and TermTen into a single arrangement continue to prove very successful within the market.

Retail Finance
Working with over 2,200 partner retailers and 160,000 customers, as at 30 September 2021 the retail finance loan book for Omni Capital Retail Finance (‘Omni’) stood at over £165m.

We're proud to have become a signatory to the Mortgage Industry Mental Health Charter (MIMHC). Not only does the charter demonstrate the importance the mortgage industry places on the health and wellbeing of its staff, it makes a public commitment towards meeting minimum levels of support.

Perhaps unsurprisingly, mental health awareness has risen dramatically since the beginning of the COVID pandemic, and Castle Trust Bank fully supports any initiatives that raise awareness and provide support. We've already introduced a number of initiatives within the Bank, which have enabled us to meet the key commitments required of signatories to the charter which are:

1. Develop mental health awareness among employees using
   activities and advocacy.
2. Encourage open conversations about mental health and the support available to employees who may be struggling.
3. Provide employees with good working conditions that encourage a healthy work life balance and opportunities for development.
4. Promote effective people management through line managers and ensure there is a focus on physical and mental wellbeing as well as performance.
5. Routinely monitor employee mental health and wellbeing through surveys and regular contact with managers.
6. Have a named contact for Mental Health Support.

More information can be found out about the charter on the MIMHC website.

Castle Trust has published its latest financial statement, as at 30 September 2020. The full detail of the statement can be found in the FY 30 Sept 2020 CTH Financial Statements and you can download a copy of the following summary of Castle Trust Bank's Financial Strength.

The financial year ending September 2020 was a pivotal year for Castle Trust as we achieved our ambition to become a bank. Converting all our investment accounts into savings accounts was a key step on this journey, with an overwhelming majority of these customers voting in favour of the proposals. The PRA and FCA granted our full banking licence on 15 June 2020.

The Group is strongly capitalised with total equity of £79.2 million, total assets of £742.1 million and liquid assets of £153.8million . In the financial year to September 2020, Castle Trust Bank made a profit before tax of £0.8m. Castle Trust Bank now has an even stronger platform to offer a greater range of services to both our savers and our borrowers. We are a provider of savings, mortgage and consumer lending products, employing over 200 people across our offices in Basingstoke and London. Our principal shareholder is the leading private equity firm J.C. Flowers & Co., which currently manages circa $6 billion in assets.

Savings
As at 30 September 2020, our c20,000 customers held just under £650 million of fixed term, fixed rate savings with us. Existing customers have been able to save into new accounts since November 2020.

Lending
As at 30 September 2020, Castle Trust Bank’s total property finance loan book stood at over £450 million. The introduction of the TermTen product which combines fixed rates and refinance options, and the Bridge to Let option which combines a bridging loan and TermTen into a single arrangement have proved very successful within the market.

Retail Finance
Working with over 1,500 retailers and 160,000 customers, as at 30 September 2020 the retail finance loan book for Omni Capital Retail Finance (‘Omni’) stood at over £115m.

 

Castle Trust Bank has recruited Nick Bennett as its new Chief Technology & Operations Officer (CTOO).

Nick has more than 15 years’ experience in technology and banking, having worked at Tandem Bank for the last three years and Santander for 11 years previous to that. He has led strategic organisational and transformational programmes and has a wide range of knowledge and experience in leading technology, change and operations in the financial banking sector.

He will join Castle Trust Bank on 29 March to lead the bank’s strategy and continuing investment and focus on technology, digitalisation and change. In the last year, Castle Trust Bank has supported its specialist Buy to Let and Bridging proposition with enhanced broker portal features, including full online case management, secure message and automatic certification of uploaded documents. Nick will lead the delivery of new developments to the bank’s property lending platform, savings offering and point of sale business, Omni Capital Retail Finance.

Martin Bischoff, Chief Executive Officer at Castle Trust Bank, said: “At Castle Trust Bank, we have already launched a market leading savings app enabling savers to manage their money through the latest face and fingerprint recognition technology and Nick will play a key role in continuing the digital transformation of our business. This will include further developing our savings technology, delivering new point of sale finance products to our network of over 1500 retailers, and building on the success of our Bridge to Let proposition to increase our lending through our growing network of intermediaries.”

Nick Bennett added: “I’m delighted to be joining Castle Trust Bank at such an exciting time for the business, following the receipt of its banking licence. I can’t wait to start working with the team to build on the amazing work they’ve already done and deliver on the next stage of Castle Trust Bank’s digital transformation.”

Following the receipt of a full banking licence and the successful conversion of all of its existing investments into savings accounts, Castle Trust is pleased to launch its new brand identity.

The firm will now operate as ‘Castle Trust Bank’, with a new logo and revamped website to showcase the new offering.

The company will initially offer savings products to existing customers reinvesting maturing funds and expects to launch new savings products for new customers in late July.  The existing specialist property lending and Omni Capital Retail Finance arms will continue to offer the same services, with enhanced offerings to come later this year. The business expects to grow its specialist lending arm significantly as the market emerges from Covid19, working with brokers to respond to borrower needs and reaching more brokers through clubs and networks.  There are also plans to expand the Omni Capital Retail Finance offering later in the year.

Martin Bischoff, Chief Executive Officer said: “This was a natural next step for us.  Castle Trust has come a long way since the company was founded, growing to serve 200,000 borrowers and savers so we already benefit from a loyal customer base, who have indicated that they would like to do more business with us as we enhance our product range.  As we step into the banking world, it seemed fitting that our brand would evolve to reflect that change too. Becoming ‘Castle Trust Bank’ sets out our stall as a fixture within the banking industry and gives us a platform from which to launch our new propositions.“

Following a period of authorisation with restrictions, Castle Trust Capital plc (Castle Trust) has been granted full authorisation as a bank by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).

After being authorised with restrictions in March 2020, Castle Trust undertook extensive testing of its new savings system and asked its customers to vote on proposals to convert their existing investments into bank deposits. Castle Trust’s customers voted in favour with an overwhelming majority and the conversion will take place later this month.

Martin Bischoff, Chief Executive Officer said: “Being granted a full banking licence signals the start of the next phase of Castle Trust’s growth.  Our first priority is to convert our 30,000 existing investment accounts into savings accounts, after which we look forward to launching our exciting new range of savings products in late July.

“The full banking licence opens up many new opportunities for the business, which we expect to benefit our specialist property finance and retail finance offerings. We already have 200,000 customers and look forward to helping even more in the future. 

“We’ll be revealing details of our enhanced specialist property lending proposition shortly, which will build upon our existing offering to meet the needs of Buy to Let landlords and High Net Worth Individuals.  Our new status enables us to work with a wider range of property brokers. 

“The banking licence also offers great potential for growth within Omni Capital Retail Finance, which will help more retailers and small & medium sized businesses to provide their products and services to more consumers.”

Tim Hanford, Managing Director of J.C. Flowers & Co., Castle Trust’s majority shareholder said “Castle Trust’s achievement of a full banking licence is the culmination of a great deal of work over an extended period of time. The licence is the endorsement of the quality of this business at many levels. We have a terrific board and an exceptional team of people who deliver innovative products to our customers supported by a technologically advanced infrastructure with robust processes and controls. We look forward to continuing to be part of Castle Trust’s development and success, and remain excited by the opportunities for a nimble competitor in the UK banking market.”


Following full authorisation on Monday 15 June 2020, all existing investments were converted into savings accounts at 7am on Monday 22 June 2020. This is known as the 'Effective Time'. as required under the scheme documents, this is a notification to all scheme creditors that the Effective Time has now occurred. All customers will receive a letter by the end of June confirming their investments have been converted.

 

Following its application for a banking licence at the end of 2019, Castle Trust Capital plc (Castle Trust) was advised on 20 March 2020 that its application for a banking licence has been successful and has been approved by the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA).

Castle Trust is now authorised with restrictions as a bank and enters into a mobilisation period.  During this period it will be required to undertake a number of actions (including the ‘Friends and Family’ testing of its new savings system) which have been agreed with the PRA and the FCA and are aimed at protecting both Castle Trust and its customers. Castle Trust is well advanced with the process and is aiming to apply for the restrictions on its deposit taking to be lifted in time for it to start to take deposits from the public later this Summer. Castle Trust has also now commenced three Schemes of Arrangement pursuant to which it intends to convert its existing Fortress Bond and Housa customers into deposit holders following the lifting of its restrictions.

Martin Bischoff, Chief Executive Officer said: “The granting of authorisation with restrictions marks an important moment in Castle Trust’s story.   

“Our customers are at the heart of our drive to become a bank.  We already have 200,000 customers and by making the transition, we expect to be able to extend an enhanced offering to both them and future customers for whom we’ll be the bank of choice.”

Tim Hanford, Managing Director of J.C. Flowers & Co. Europe, Castle Trust’s majority shareholder said “We have seen Castle Trust develop from its inception in 2012, building its customer base and product propositions to the point where a banking licence became the obvious next step.  The company’s strong performance and robust management have been demonstrated throughout, establishing a strong foundation for continuing its success as Castle Trust Bank.”

 

The company also announced the appointment of Richard Pym CBE as Chair.  Richard is an experienced financial services Chair, whose most recent role was with AIB Group plc, where he chaired the company through the initial public offering in 2017 and led the board through the recovery from financial crisis.

Richard said: “I’m delighted to join Castle Trust.  The company is growing at pace and the granting of authorisation with restrictions heralds the start of great opportunities for the business to flourish.”

Speaking of Richard’s appointment, Martin Bischoff said: “Opportunities to recruit someone of Richard’s calibre are rare.  His extensive experience as Chair of some of our most recognised financial institutions makes him the ideal person to lead Castle Trust into the banking world and we are thrilled that he has agreed to join us.”

Tim Hanford praised Richard’s appointment: “At J.C. Flowers & Co. we have known Richard for many years and have always admired his leadership. I am confident that Richard is an excellent complement to the Castle Trust management team and I look forward to working with Richard to deliver the business’ plan and continuing its success as a bank.”

To support the next stage of its development as it becomes a bank, Castle Trust Capital plc (Castle Trust) has appointed two new independent Non-Executive Directors, one of whom will take up the role of Audit Committee Chair.

The new Senior Independent Director and Chair of the Audit Committee has been confirmed as Eric Anstee FCA.  Eric has extensive experience across the financial services industry and has chaired Audit Committees for the likes of OneSavings Bank plc, Sun Life Financial of Canada Limited and Paypoint plc.

Eric said “Castle Trust’s credentials are very strong with a proven track record.  I look forward to being part of the business as it goes through such a significant period of development.”

Richard Pym, Castle Trust’s Chair added: “Eric brings a wealth of Audit Committee experience to the role and was a natural choice.  We’re confident that the Committee is in safe hands with Eric as Chair.”

The firm has also appointed Melba Montague as Non-Executive Director. Melba, the European Banking and Financial Markets leader at IBM Global Business Services, brings a wealth of financial technological experience to help drive Castle Trust’s change agenda.

Speaking of her new role, Melba said: “The company has big plans and being part of the team taking Castle Trust through the launch process and into the next phase of its development is particularly exciting.”

Richard Pym also welcomed the appointment: “As a recognised leader in the world of IT, Melba brings a unique set of skills to the Castle Trust board.  Her expertise within the technology field will support our drive to optimise our customer journeys.” 

Martin Bischoff, Chief Executive Officer said of the appointments: “This is a pivotal moment in Castle Trust’s story and making such prestigious appointments really sets the direction of travel into the banking world. 

“This is an exciting time for the business and with such solid support, I look forward to seeing Castle Trust become a leading force within the banking community.”

Tim Hanford, Managing Director of J.C. Flowers & Co. Europe, Castle Trust’s majority shareholder said “We are pleased to welcome these new directors to the Castle Trust board.  With the support of such high calibre members and their respective skills and experience, we are confident that Castle Trust will continue to develop as a successful specialist bank providing an array of sophisticated financial products to its customers.”

September 2019

In April 2018 we announced our intention to become a bank. Since then, we have been working closely with both UK regulators, the Prudential Regulation Authority and the Financial Conduct Authority, on our banking licence application. We were recently invited to submit our application, which we did this week.

This is a natural next step in Castle Trust’s journey that started when we were founded in 2012 with a simple mission: to help both investors and borrowers achieve their financial goals. Becoming a bank is an exciting milestone but it won’t change our focus on doing what’s right for our customers. In fact, it means we’ll be able to offer a broader range of products in the future.

This stage of the rigorous application process is expected to take until spring next year. There is nothing existing customers need to do now and we’ll keep customers updated on a regular basis.

Speaking about the application, Martin Bischoff, Chief Executive Officer said:

“Being invited to apply for a banking licence by the UK regulators is testament to the strength of the careful planning and preparations we have put in place. Castle Trust has always been proud of being different, and now we’re in the process of becoming a different kind of bank. We’re very excited about the opportunities that come with a banking licence to better help our customers achieve their financial goals.”

You can find more information about our banking application on our Q&A page.