Huge growth in profits at OakNorth Bank is ‘only the beginning’ says CEO
Europe’s fastest-growing company, OakNorth Bank, has today revealed it nearly doubled its pre-tax profits last year to £65.9m – up from £33.9m in 2018.
The UK bank is now ranked in the top 1% of banks globally in terms of performance, after profitably lending more than £4bn to British businesses since its launch in 2015.
Such has been OakNorth’s success, it now has around 144,000 savers – up from 28,000 as recently as 2018. It also says its loans have had ‘significant impact on the British economy’ by enabling borrowers to create almost 12,000 new affordable and social homes and 17,000 new jobs.
It typically provides loans of between £500k to £25m to the ‘Missing Middle’ – growth businesses that tend to have the largest impact on economies and communities but have been in banking’s blind spot for decades.
Its platform, which is being licensed to other banks around the world, combines fundamental credit analysis and rich data sets (which include unconventional and previously unavailable data), to provide the insight and foresight needed to holistically understand and profitably lend to these businesses.
This approach has seen OakNorth grow total loan facilities in 2019 to £3.1bn, despite ongoing uncertainty from Brexit and the general election.
Rishi Khosla, CEO and co-founder of OakNorth Bank, said: “We built OakNorth to provide a better borrowing experience – borrowing the way it should be.
“In four years, we have been able to leverage OakNorth’s Platform to build one of the most successful new banks globally, and in doing so, help hundreds of UK businesses who have in turn created thousands of new homes and jobs.
“Our model is proving that it’s possible to delight customers and put them at the heart of your business, while generating a profitable and environmentally-sustainable business.
“While I am humbled to see what we have accomplished in our first four years, this is only the beginning.
“I am excited to demonstrate the power of our platform and continue to work with our partner banks around the world to enable businesses and economies to thrive.”
OakNorth Bank was last month officially named as Europe’s fastest-growing company by the Financial Times.