C. Hoare & Co.
TypePrivate bank
IndustryBanking
Founded5 July 1672 (1672-07-05)
FounderSir Richard Hoare
HeadquartersLondon, England, UK
Key people
The Lord Macpherson of Earl's Court
(Chairman)
Diana Brightmore-Armour
(Chief Executive)
ProductsFinancial services
Number of employees
400
Websitehoaresbank.co.uk

C. Hoare & Co., also known as Hoares, is a British private bank, founded in 1672 by Sir Richard Hoare; it is currently owned and led by the eleventh and twelfth generation of his direct descendants. It is the oldest privately-owned bank in the United Kingdom and reputedly the fourth oldest in the world.

C. Hoare & Co. provides private banking services that include loans, mortgages and savings accounts. Over the years, its clients have included Samuel Pepys, John Dryden, Jane Austen and numerous members of the aristocracy; today, they are primarily high-net-worth individuals and families. The bank has two branches in London, 37 Fleet Street and 32 Lowndes Street.

History

Sir Richard Hoare, the bank's founder.

17th century

After finishing his apprenticeship, Sir Richard Hoare was granted the Freedom of the Goldsmiths' Company on 5 July 1672, which marks the foundation of Hoare's Bank. Richard established his business at the sign of the Golden Bottle in Cheapside, London; since street numbering was unknown in those days, signs were used to distinguish one business from another. In 1690, the business moved to Fleet Street, still within the City of London but on the main thoroughfare to the City of Westminster.[1]

Goldsmiths were often used to safeguard cash and valuables, putting them in a unique position to evolve a system of banking. By 1677, some 58 goldsmiths kept "running cashes" and started to lend their customers' money for interest.[2]

18th century

Henry Hoare, known as The Magnificent.

During the 18th century, the bank prospered; Richard Hoare was knighted by Queen Anne in 1702 and became Lord Mayor of London in 1712.[3] After his death, the business was continued by two of his sons, Henry and Benjamin.[4] They were both members of the Society for the Propagation of Christian Knowledge, which opened an account with Hoares in 1711. Many of those who held the first individual accounts with Hoare's were also connected to the Society, including Lady Elizabeth Hastings, Mary Astell and Joseph Smith.[5]

Henry's son Henry Hoare, was a partner in the bank for nearly 60 years and dominated the family through his wealth and personal charisma.[6] His nickname "The Magnificent" derived from his generosity as a patron of the arts and his expenditure on Stourhead in Wiltshire, a country house and estate bought by his father.[7] Under his guidance, the bank introduced many innovations, such as printed cheques.[8]

19th century

Original premises in Fleet Street.
The Fleet Street premises feature a reference to the original "sign of the Golden Bottle"

The bank was well known for its discretion; in 1825, William Christmas embezzled £1,000 from the bank to fund his affair with actress Louisa Chatterley.[9] He was sentenced to be transported to Australia for 14 years, and his father was obliged to honour the £1,000 fidelity bond he had posted when his son joined the bank.[10]: 33 

In 1829, the premises at Fleet Street were rebuilt; the new banking house was designed to accommodate the business and a private house.[11] Following the Bank Charter Act 1844, many of the 4,000 or so private banks disappeared but Hoares remained, led by Charles Hoare, the last senior partner to continue the practice of having the bank named after him.[12]

After his departure, the bank was almost ruined through unsuccessful speculation and poor management by the senior partners, Henry and Peter Richard. Both were deeply religious but with differing views, and took it in turns to run the bank, each being in charge for a six-month period. Their sons, including Charles Arthur Richard Hoare, also became partners and proved financially unreliable, placing the future of the bank in peril.[10]

20th century

Lowndes Street branch

A revival of fortunes for the bank took place in the 20th century, with the early years seeing its credibility restored. After the First World War, most of the remaining private banks were absorbed by larger banks, leaving Hoares as the only surviving independent. It was a partnership until 1929 when the partners formed a private unlimited liability company, in which they were the sole shareholders.[10]

During the Second World War, the bank's employees evacuated their offices, including the headquarters at 37, Fleet Street. A fire broke out during an air raid, but thanks to some employees' actions, the historic building was saved.[13] According to Alexander Hoare, his grandfather Bertram, the Fleet Street air warden at the time, was credited with saving the bank from burning down.[14]

21st century

Alexander S. Hoare, the former chief executive of the bank, represents the eleventh generation to manage C. Hoare & Co. He was replaced by the first non-family member in an executive position: Jeremy Marshall, former head of Credit Suisse Private Bank.[15][16] Marshall stepped down and was replaced by deputy chief executive David Green in 2016.[17] In 2021, Diana Brightmore-Armour, a veteran of Lloyds Corporate Banking and Coca-Cola, stepped in as CEO.[18]

In October 2016, Hoare sold its Wealth Management business to Cazenove Capital Management, owned by Schroders.[19] This was followed in March 2017 by disposing of its investment dealing and custody business to Canaccord Genuity Wealth Management.[20]

In 2018 Rennie Hoare, previously the head of philanthropy, was appointed a shareholding partner in an effort to bring “millennial thinking” into the bank.[21]

According to the Sunday Times Rich List in 2019, the Hoare family is worth £400 million, an increase of £40 million from the year before.[22]

In Georgette Heyer's 1965 Regency Romance novel The Grand Sophy, Sir Horace Stanton-Lacy, father of the heroine Sophy, banked with Hoare's.

"My bankers are Hoares" is one of Jack Aubrey's favourite puns in several of the books from the Aubrey-Maturin series by Patrick O'Brian.

In Tahir Shah's 2012 historical novel Timbuctoo, based on the 1816 memoir The Narrative of Robert Adams, C. Hoare & Co. were the bankers to The Royal African Committee (cf Royal African Company). Several scenes take place at Hoare's Bank on Fleet Street.[23]

References

  1. ↑ Hutchings 2005, pp. 10–11.
  2. ↑ Hutchings 2005, p. 10.
  3. ↑ Hutchings 2005, p. 29.
  4. ↑ Hutchings 2005, p. 37.
  5. ↑ Laurence 2010, pp. 201–213.
  6. ↑ Hutchings 2005, p. 49.
  7. ↑ Hutchings 2005, p. 51.
  8. ↑ Hutchings 2005, p. 74.
  9. ↑ Hutchings 2005, p. 108.
  10. 1 2 3 "Through the Years; Tales from the Hoare's Bank Archive" (PDF). Hoares Bank. Archived from the original (PDF) on 10 July 2018.
  11. ↑ Hutchings 2005, p. 114.
  12. ↑ Hutchings 2005, p. 126.
  13. ↑ "C. Hoare & Co., England's Oldest Private Bank". Finance History. Wordpress. 18 December 2011. Retrieved 6 September 2016.
  14. ↑ How C. Hoare & Co. became the oldest family-owned bank in the world Spear's Magazine. Accessed 18 February 2022.
  15. ↑ C. Hoare & Co. - Company Profile. Reference For Business. Accessed 24 September 2009.
  16. ↑ "C Hoare & Co profits increase by 25% for year ending March 2019". Private Banker International. Retrieved 9 April 2020.
  17. ↑ C Hoare & Co chief executive steps down. Citywire. Accessed 18 February 2022.
  18. ↑ How C. Hoare & Co. became the oldest family-owned bank in the world. Spear's Magazine. Accessed 18 February 2022.
  19. ↑ "Cazenove buys C Hoare & Co's wealth arm". The Times. Retrieved 16 November 2016.
  20. ↑ Lobo, Dylan. "C Hoare sells dealing and custody division to Canaccord". Citywire. Retrieved 29 March 2017.
  21. ↑ "UK's oldest bank taps 32-year-old as new partner". Financial Times. Retrieved 9 April 2020.
  22. ↑ "Rich List 2019: profiles 301-348=, featuring Tim Martin and Simon Cowell". The Sunday Times. 12 May 2019. ISSN 0140-0460. Retrieved 1 July 2019.
  23. ↑ Shah, Tahir (June 2012). Timbuctoo (First ed.). London: Secretum Mundi. pp. 42, 177, 179, 347, 391, 392, 398, 399, 400, 503. ISBN 978-0957242906. Archived from the original on 28 September 2019. Retrieved 16 December 2014.

Sources

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