OakNorth reveals huge profit surge
OakNorth has revealed a huge profit surge of 220 per cent to £33.9 million.
The challenger bank’s total loan facilities grew 160 per cent in 2018 to £2.2 billion.
Launched in September 2015, OakNorth offers loans of £500,000 to £40m to fast-growth UK businesses and established property developers and investors.
Its FinTech platform, OakNorth Analytical Intelligence, has helped ensure that it maintains a high credit quality and a clear view of how each business within its portfolio is performing.
To date, OakNorth has not had a single default, and the last 12 months saw it receive over £400 million of repayments.
Earlier this week OakNorth, which is Europe's most valuable FinTech following a $440 million investment round led by SoftBank, strengthened its leadership team with two appointments.
“To date, we’ve lent £3bn to growth businesses across the UK, helping them achieve their ambitions whilst simultaneously enabling the creation of 10,000 new homes and 13,000 new jobs,” said CEO and co-founder Rishi Khosla.
“The companies we are lending to are home-builders, job-creators, productivity-boosters, and drivers of GDP growth, which have a transformative impact on our community and the health of the wider economy.
“To continue reinforcing this positive cycle, we will be donating one per cent of group profits to supporting charitable causes and social entrepreneurship.
“Through the licensing of our platform, OakNorth Analytical Intelligence, to bank partners around the world, we will bring a similar impact to entrepreneurs and communities globally.”
Its clients include some of the most well-known and successful businesses in the UK: LEON, Brasserie Bar Co., NetPay, TritonExec, Regal London, Baird Capital, Rockpool Investments, Galliard, Frogmore, and The Collective.
The business’ lending efforts are supported through the range of competitive savings products it offers to both individuals and businesses, and it now has over 40,000 savings customers and a Feefo rating of 4.5 stars thanks to its simple online application and 11-second average phone response times.