Since 24 June, the bank has closed more than £100m in deals
Challenger bank OakNorth has become the first completely new bank in the UK to achieve cash profitability less than one year after launching.
The bank began deposit-taking and lending in September last year after completing mobilisation faster than any other bank in the UK – five months.
Since 24 June, the bank has closed more than £100m in deals – including a £19m deal with healthy fast-food chain, LEON – growing its loan book to over £200m.
As the bank looks ahead to next year and anticipates increased demand for its lending products, it will be bringing several new retail products to market to add to its existing offering of fixed term accounts ranging from 12-30 months. The first of these retail products will be launched next quarter.
Rishi Khosla, CEO and co-founder of OakNorth said: “This is a huge milestone for us and a significant achievement for a 12-month-old bank that was built fully from scratch. Achieving profitability is something that some of our larger competitors – both those that are completely new like us, and those that have been borne out of existing businesses – have yet to achieve. It is testament to our lending and deposit-taking capabilities, as well as the fantastic work that has been carried out by our team.
“With or without Brexit, we are strong believers in the UK entrepreneur. We have a unique opportunity to prove our commitment to our country’s entrepreneurs and growth businesses at a time when many other banks are retrenching.”