Challenger bank OakNorth’s push into the US market has driven a profit surge revealed in its latest annual report.
The Soho-headquartered digital banking provider posted a 16% boost in post-tax profit from the year before, reaching £157.8m at the end of December 2024.
This represents the eighth successive increase since OakNorth hit its first full year of profit in 2017, when in pulled in £9.5m after tax.
OakNorth, chaired by independent peer Lord Adair Turner, secured regulatory approval last year to market its banking services in the US through the establishment of a representative office in New York.
The firm said it was seeking to address agap in the US financial services sector for banks supporting middle-market, small businesses, the primary customers of OakNorth.
As of the end of 2024, OakNorth has lent $685m (£531.8m) in the US and CEO Rishi Khosla said the company was “going into 2025 with an incredibly strong pipeline” across the Atlantic.
“Over the last year, we have continued to invest in and develop our offering for our customers, expanding both our product suite and our geographic footprint,” Khosla said.
“Despite ongoing macro-economic challenges, we are bullish for 2025, and excited about helping even more exceptional businesses and entrepreneurs on their scaling journeys.”
The group paid shareholders £40m in dividends throughout the year, paying its first-ever in August.
Read more: Wise executive joins OakNorth board
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