Manchester and London-based OakNorth — a digital bank for entrepreneurs — has publishes its latest annual report, revealing pre-tax profits of £214.8 million for 2024, up from £187.3 million in 2023.
OakNorth said it provided over £2.1 billion of gross new lending in 2024 to businesses across the UK and the US.
To date, OakNorth said its total cumulative credit facilities have grown to £12.5 billion – up from £10.2bn at the end of 2023 “with an adj. return on equity (ROE) of 22%.”
OakNorth said that since its launch in September 2015, its loans have directly supported the creation of over 56,000 jobs and over 34,000 new homes, the majority of which are affordable housing.
The bank said it serves a diverse customer base that mirrors the economy, consisting of 51% real estate and 49% business loans.
In August 2024, OakNorth received authorisation from the Federal Reserve and the New York State Department of Financial Services (NYDFS) to establish a Representative Office in New York, enabling it to accelerate its growth across North America.
“The past year also saw OakNorth strengthen its reputation as one of the few fintechs globally that has consistently delivered both strong growth and high profitability,” said OakNorth.
“The over-subscription by leading global investors for OakNorth’s £150m ($189m) subordinated debt (Tier 2) public market issue in October 2024, is a testament to OakNorth’s robust performance and solid credit record.
Rishi Khosla, CEO and co-founder of OakNorth, said: “Over the last year, we have continued to invest in and develop our offering for our customers, expanding both our product suite and our geographic footprint.
“The compounding power of consistent double-digit growth across our net income and return on equity, driven by our strong customer satisfaction, proprietary tech, data, efficient operations, and disciplined credit approach, is profound.
“Despite ongoing macro-economic challenges, we are bullish for 2025, and excited about helping even more exceptional businesses and entrepreneurs on their scaling journeys.”