Digital lender Cashplus delivered a £5m post-tax profit, its first since 2018, with boss Rich Wagner highlighting its progress compared to more established challenger banks.
Speaking to City A.M., Wagner said that other challenger banks were simply “talking about profit”.
Although more and more challengers are hitting profitability, Wagner said other challenger bank’s “bottom line profit is still a loss”.
“They’re spinning a story around operating profit, when in fact they are still losing money,” he said.
Cashplus, which secured a banking licence in 2021, secured its profit on the back of record revenue, which rose 28 per cent year-on-year to £52m.
While rising interest rates boosted the lender, it secured double digit growth across other business lines, such as payments and fees.
Cashplus also opened new offices in Liverpool and recorded significant growth in new business.
Its main microbusiness current account saw a 20 per cent increase in sales year-on-year, while overall customer accounts grew 60 per cent. Deposits meanwhile climbed 13 per cent to £512m.
It hopes to secure a 10 per cent share of the SME market in the next four to five years.
Wagner said the bank had seen little deterioration in its credit quality despite rising interest rates.