C. Hoare & Co

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

C. Hoare & Co.
TypePrivate bank
IndustryBanking
Founded5 July 1672 (1672-07-05)
FounderSir Richard Hoare
HeadquartersLondon, England, UK
Key people
Alexander S. Hoare
ProductsFinancial services
Number of employees
400
Websitehoaresbank.co.uk

C. Hoare & Co. provides private banking services that include loans, mortgages and savings accounts, as well as tax and estate planning services. 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 currently has two branches in London, 37 Fleet Street and 32 Lowndes Street; in March 2019, it opened a branch in Cambridge.[1]

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.[2]

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.[3]

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.[4] After his death, the business was continued by two of his sons, Henry and Benjamin.[5] 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.[6]

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.[7] 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.[8] Under his guidance, the bank introduced many innovations, such as printed cheques.[9]

19th century
Original premises in Fleet Street.

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.[10] He was sentenced to be transported for 14 years and his father was asked to make good the bank's losses.[11]

In 1829, the premises at Fleet Street were rebuilt; the new banking house was designed to accommodate the business and a private house.[12] 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.[13]

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.[11]

20th century
Lowndes Street branch

A revival of fortunes for the bank took place in the 20th century, with the early years seeing the credibility of the bank 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.[11]

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 the actions of some employees, the historic building was saved.[14]

21st century

Alexander S. Hoare, the former Chief Executive of the bank, represents the eleventh generation to manage C. Hoare & Co. He has been replaced by the first non-family member in an executive position: Jeremy Marshall, former head of Credit Suisse Private Bank.[15][16]

In October 2016, Hoare sold its Wealth Management business to Cazenove Capital Management, owned by Schroders.[17] This was followed in March 2017 by disposing of its investment dealing and custody business to Canaccord Genuity Wealth Management.[18]

In 2018 Rennie Hoare, who was previously the head of philanthropy was appointed a shareholding partner, in an effort to bring “millennial thinking” into the bank.[19]

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.[20] In March 2019, the bank opened a branch in Cambridge, the first ever outside London.[21]

In Georgette Heyer's 1965 Regency Romance novel The Grand Sophy, Sir Horace Stanton-Lacy, the 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, C. Hoare & Co. were the bankers to The Royal African Committee. Several scenes take place at Hoare's Bank on Fleet Street.[22]

References
  1. "C Hoare opens first regional office in 350 year history". Wealth Manager. Retrieved 2020-04-09.
  2. Hutchings 2005, pp. 10-11.
  3. Hutchings 2005, p. 10.
  4. Hutchings 2005, p. 29.
  5. Hutchings 2005, p. 37.
  6. Laurence 2010, pp. 201–213.
  7. Hutchings 2005, p. 49.
  8. Hutchings 2005, p. 51.
  9. Hutchings 2005, p. 74.
  10. Hutchings 2005, p. 108.
  11. "Through the Years; Tales from the Hoare's Bank Archive" (PDF). Hoares Bank. Retrieved 22 October 2019.
  12. Hutchings 2005, p. 114.
  13. Hutchings 2005, p. 126.
  14. "C. Hoare & Co., England's Oldest Private Bank". Wordpress. 18 December 2011. Retrieved 2016-09-06.
  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 2020-04-09.
  17. "Cazenove buys C Hoare & Co's wealth arm". Retrieved 2016-11-16.
  18. Lobo, Dylan. "C Hoare sells dealing and custody division to Canaccord". Citywire. Retrieved 29 March 2017.
  19. "Subscribe to read | Financial Times". www.ft.com. Retrieved 2020-04-09. Cite uses generic title (help)
  20. Times, The Sunday (2019-05-12). "Rich List 2019: profiles 301-348=, featuring Tim Martin and Simon Cowell". ISSN 0140-0460. Retrieved 2019-07-01.
  21. Amos, Robin. "C Hoare opens first regional office in 350 year history". CityWire.co.uk. Retrieved 22 October 2019.
  22. 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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