OakNorth triples profits as loans surpass £2 billion

OakNorth, the British challenger bank for business, more than tripled profits in 2018 as its loans facilities surpassed £2 billion.

Profits before tax rose 220% to £33.9 million last year, while total loan facilities grew 160% to £2.2 billion.

OakNorth lends between £500,000 and £40 million to profitable British businesses with ambitions to scale up. Its clients to date include Leon, NetPay and Raymond Blanc’s pub and restaurant group Brasserie Bar Co.

The lender struck new deals in 2018 with the likes of Z hotels, Mr Fogg’s owner Inception Group and London property developer Galliard.

OakNorth said it has not yet had a single default since its launch in 2015, and has received over £400 million in repayments over the last 12 months.

Alongside its results, OakNorth said on Wednesday that it would donate 1% of its profits going forward to charities and social enterprises.

“To date, we’ve lent £3 billion 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,” CEO Rishi Khosla said.

“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.”

The business also has a range of savings products for both individuals and businesses. It has over 40,000 savings customers.