Revenue, lending and deposit figures all increase for challenger bank
Fintech challenger bank Allica has announced significant growth in its annual performance for 2023, reporting a 141% increase in revenue, reaching £191 million.
Its lending to small and medium-sized enterprises (SMEs) surged by 47% to £2 billion, while customer deposits grew by 75% to £2.6 billion.
For the first time since its establishment, Allica Bank achieved a pre-tax profit of £16.1 million, marking its first full year of profitability, making it one of the fastest UK fintechs to reach the milestone.
The bank’s 2023 annual report showed net interest margin rose to 5% in 2023, up from 3.6% in 2022, while cost-income ratio improved significantly from 85.7% in 2022 to 65% in the current year.
Today, we’re pleased to share that Allica Bank achieved our first full year of profitability in 2023 🎉#fintech #businessbanking #SMEfinance pic.twitter.com/MNkpCTl3WE
— Allica Bank (@AllicaBank) April 22, 2024
Since commencing lending operations in 2020, Allica has positioned itself as the UK’s only full-service digital bank tailored exclusively for established SMEs, which constitute over a third of the UK economy.
The bank’s notable strides in 2023 included the public launch of its Business Rewards Account, attracting over 2,000 customers. Additionally, it expanded its asset finance business, surpassing £200 million in annual lending and grew its customer deposits by over £1 billion.
Allica also launched a campaign advocating for better savings rates for SMEs, highlighting an estimated £7.5 billion in lost savings interest across this market segment. The bank’s efforts were recognised with numerous accolades, winning over 20 industry awards throughout the year.
“The last year has been incredibly successful at Allica,” said Richard Davies (pictured), the bank’s chief executive. “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, 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.”
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