OakNorth Bank achieves pre-tax profit of £78 million

OakNorth Bank has been able to achieve these results thanks to the insights and efficiencies provided by its cloud software that transforms commercial lending, the ON Credit Intelligence Suite

0
214
OakNorth Bank achieves pre-tax profit of £78 million

OakNorth Bank lent £1.1 billion last year and achieved a pre-tax profit of £78 million.

Since 2015, the bank has lent more than £5.1 billion, with £1.6 billion of facilities repaid, and now has hundreds of borrowers in the UK across a variety of sectors.

By working closely with its borrowers and sharing best practices from their industry peers, OakNorth Bank helped them take timely and appropriate action to address the impact of Covid-19, achieving an average borrower Net Promoter Score of 80 throughout 2020.

In addition to this, the bank has only had a cumulative 10 defaults since inception, six of which have been resolved with 100% recovery and so has had no loan write-offs to date. On the remaining loans in default, it had provisioned for £5 million as at 31 December 2020.

OakNorth Bank has been able to achieve these results thanks to the insights and efficiencies provided by its cloud software that transforms commercial lending, the ON Credit Intelligence Suite.

OakNorth Bank’s lending is supported by its savings franchise, offering a range of Financial Services Compensation Scheme-protected products to savers at all stages of life and businesses at all stages of growth.

Its convenient, competitive and frictionless deposit offering, coupled with its exceptional customer service, has enabled it to attract more than 170,000 savings customers and achieve a depositor Net Promoter Score of 77.

Rishi Khosla, chief executive officer and co-founder of OakNorth Bank, comments: “Given the challenges of the pandemic on society and the economy over the last year, OakNorth’s mission—to empower the Missing Middle—has never been more important.”

“As demonstrated by the tens of thousands of new jobs and homes that have been created off the back of the c.£5 billion we’ve lent to date, these businesses are the most significant contributors to economic and employment growth.”

“They will play a vital role in the post-pandemic economic recovery, so we’re proud to have continued supporting them through not one but two unprecedented events—the Brexit vote and the withdrawal process that followed, and Covid-19. In doing so, we’ve been able to build a robust and profitable business supported by 170,000 loyal savers.”