Asset Finance News

Allica Bank achieves first full year profit

davies richard allica
Richard DaviesCEO at Allica Bank

Recently named as the fastest-growing UK fintech ever by Deloitte in their UK Technology Fast 50 2023 ranking, Allica Bank today released its Annual Report for the year ending 31st December 2023, underlining a period of continued growth, strong financial metrics and watershed achievements.

Reporting pre-tax profit of £16.1 million marks the first full year of profit at Allica, being one of the fastest UK fintechs to achieve full year profitability.

Since opening for lending in 2020, Allica is the UK’s only full-service digital bank built solely for established SME businesses (typically with 5-250 staff, that make up over a third of the UK economy).

2023 saw the bank accelerate its efforts to disrupt the SME banking market with a series of achievements including the public launch of its business current account which now has over 2,000 customers; reaching £2 billion in loans to SMEs; growing customer deposits by over £1 billion; launching a ground-breaking savings campaign calling for better rates for the UK’s SME savers, highlighting £7.5 billion of missing savings interest across the SME market; and winning more than 20 industry awards throughout the year.

Allica’s strong progress with SME customers has resulted in another year of strong financial metrics, with revenue increasing 141% to £191 million; total lending to SMEs increasing 47% to £2 billion; customer deposits increasing 75% to £2.6 billion; net interest margin increasing to 5.0% in 2023 (3.6% in 2022); and cost:income ratio down to 24% to 65.0% (85.7% in 2022).

Allica is targeting to scale further, aiming for 10%+ market penetration in the coming years in order to drive true market wide change to transform banking for established SMEs.

Commenting on Allica’s performance over the last 12 months, Richard Davies, CEO said: “The last year has been incredibly successful at Allica. 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 in Deloitte’s annual Technology Fast 50 rankings, 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”.