Wednesday 20 March 2019 4:42 pm

Fintech unicorn Oaknorth more than trebles profits continuing rapid growth

London fintech unicorn Oaknorth more than trebled profits last year and grew its loan facilities to £2.2bn as the challenger bank’s rapid growth continued.

The digital bank, which provides loans for fast-growing British businesses, has now lent more than £2.5bn since its launch in September 2015.

Read more: UK fintech unicorn Oaknorth to nail $440m round led by Softbank

Pre-tax profits rose to £33.9m in 2018, the company said yesterday, up from £10.6m the previous year, while its total loan facilities grew by 160 per cent to £2.2bn.

The company added it had still not had a single default and had received more than £400m in repayments.

The savings challenger also secured a $440m (£333m) funding round led by Japanese tech giant SoftBank last month, valuing the firm at $2.8bn.

Chairman Cyrus Ardalan said: “Oaknorth continues to experience rapid growth and strong profitability through addressing the specific needs of entrepreneurs.

“We are confident that the bank’s unique analytical platform underpinning its credit decisions will enable it to maintain its rapid growth notwithstanding any challenges that might emerge from uncertainties surrounding Brexit and beyond."

Read more: Saudi-backed fund plans investment in British digital bank Oaknorth

Chief executive and co-founder 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.

"To continue reinforcing this positive cycle, we will be donating 1% of group profits to supporting charitable causes and social entrepreneurship."