By: 25 April 2024

Revenue increased 141% to £191m just three years since opening

Allica Bank achieves first full year profit

Recently named as the fastest-growing UK fintech ever by Deloitte, Allica Bank has released its Annual Report for the year ending 31 December 2023, underlining a period of continued growth, strong financial metrics and watershed achievements.

Since opening for lending in 2020, Allica is the UK’s only full-service digital bank built solely for established SME businesses. 2023 saw the bank accelerate its efforts to disrupt the SME banking market with a series of achievements:

  • Public launch of its business current account – the ‘Business Rewards Account’ – which now has over 2,000 customers – already 0.5% of its target segment of established SMEs
  • It reached £2bn in loans to SMEs
  • Grown the bank’s asset finance business, surpassing £200m in annual lending for the first time since launching the product in 2021 
  • Grew customer deposits by over £1bn
  • Launched a ground-breaking savings campaign calling for better rates for the UK’s SME savers, highlighting £7.5bn of missing savings interest across the SME market
  • Announced as Best Business Finance Provider at the coveted British Bank Awards, alongside winning more than 20 other industry awards through the year

Allica’s strong progress with SME customers has resulted in another year of strong financial metrics:

  • Revenue increased 141% to £191m
  • Total lending to SMEs increased 47% to £2bn
  • Customer deposits increased 75% to £2.6bn
  • Pre-tax profit of £16.1 million marks first full year of profit – one of the fastest UK fintechs to achieve full year profitability
  • Net interest margin increased to 5% in 2023 (3.6% in 2022)
  • Cost:income ratio down to 24% to 65% (85.7% in 2022)

Allica is targeting to scale further, aiming for 10%+ market penetration in the coming years in order to drive true market wide change to transform banking for established SMEs.

Commenting on Allica’s performance over the last 12 months, Richard Davies, chief executive officer, said: “The last year has been incredibly successful at Allica. We’ve seen significant growth in revenue, lending and deposits, showing that our proposition for SMEs is starting to really cut through.

“Recording our first full year profit just three years after opening our doors for lending on the eve of the covid lockdown was a true milestone in challenging market conditions, and one we’re very proud to have achieved.

“Alongside this we were recognised as the fastest-growing UK fintech ever in Deloitte’s annual Technology Fast 50 rankings, and we are proud to not only be growing quickly but sustainably by investing back into the business, our products and our people.

“Allica remains the UK’s only full-service digital bank dedicated to serving established SMEs, and we are laser focused on transforming banking for this critical segment of our economy”.

The news comes following Access Pay, who provide Allica with their banking platforms, raising $24m in funding.

Image: Allica Bank

Tags
Robert Welbourn
Robert Welbourn is an experienced financial writer. He has worked for a number of high street banks and trading platforms. He's also a published author and freelance writer and editor.