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The Hodge Group has reported record pre-tax profits of more than £50m.

The record results for the Cardiff-based group, for the financial year to the end of October, were principally generated by its two financial services subsidiaries.

Hodge Bank, which specialises in commercial and later-life lending, recorded pre-tax profits of £22.8m, driven primarily by strong new business and fee levels in commercial lending.

Net interest income rose by 97% to £13.2m and net operating income from trading activities rose by 86% to £14.3m.

Hodge Life Assurance, which offers equity release and annuities under the Hodge Lifetime brand, made £27.4m pre-tax, resulting from strong trading underpinned by a significant increase in pension annuity new business premiums which were 61% up on the previous year.

Group total assets exceeded £1.9bn at the end of the financial year.

Keith James, chairman of both companies, said: “It has been a tremendous year. Following the business’ move to One Central Square last September and its rebrand to trade under the Hodge name, the group’s result has been underpinned by a record performance in both of our main businesses, and we have created a very strong platform for future growth.”

Group managing director David Austin said: “We are very proud of our 2016 results, and I’m grateful to our staff who have played an important part in this achievement. Nevertheless, we enter 2017 with a degree of caution.

The adoption of a new financial reporting regime has meant that market factors such as interest rates and house prices have a much greater influence on the reported outcome than previously, and whilst the effect has been favourable in 2016, our results will inevitably be more volatile in future.

“However, the fundamentals underpinning our business remain strong and I have no doubt we can deal with the vagaries of market movements as they occur.”