Oaknorth delays net zero goal as US expansion fuels lending boom
UK fintech Oaknorth has slapped a ten year delay on its ambition to be a net zero bank as the firm’s expansion across the Atlantic picked up pace.
The small business lender said it expects to meet net zero commitments by 2045, as opposed to previous guidance of 2035 set four years ago.
Oaknorth said since 2022 it had “expanded into new geographies, introduced business banking, and adapted to shifting regulatory expectations and political priorities”.
It added the delay reflects a “credible, evidence-based pathway,” the bank said, and added it ensures “actions remain realistic and accountable”.
The move comes as the British fintech unicorn’s ventures into the US picked up pace following its acquisition of Michigan-based Community Unity Bank (CUB) last March – subject to regulatory approval – in a bid to expand its overseas reach.
In the last year, the total volume of new loans reached $1.4bn, more than trebling from $400m in 2024. Originations in the US made up around 40 per cent of new lending for the group.
The bank’s board approved a fresh £45m dividend payment in early March, which followed total payouts topping £120m in 2025.
Oaknorth faces challenges in ‘subdued’ UK
The momentum in the US helped the digital bank seal its fifth consecutive year of growth with profit before tax of £222.5m and offset weak performance on the home front.
“The UK’s subdued environment created a more challenging lending backdrop than anticipated, while the US provided both growth opportunity and the need for careful navigation of a credit market that is evolving rapidly,” Oaknorth’s annual report said.
In the UK the bank kicked off £1.7bn in new lending during 2025. Over 65 per cent were completed in the second half of the year after the first half was marked by “irrational market behaviour” regarding price and leverage.
The firm said it observed competitors offering loans with rates that were too low or with leverage – loan amounts relative to borrower equity – that was too high for the level of risk involved.
It added due to stepping back from these deals, the majority of its lending work was not finalised until the second half.
Oaknorth also sounded off on “subdued” business sentiment in the UK that “weighed on market confidence, coupled with significant liquidity in the market – which also drove elevated repayment volumes.”