OakNorth – the bank for entrepreneurs, by entrepreneurs – has today published its 2018 Annual Report, revealing that it made £33.9m profit last year with its total loan facilities growing by 160% to £2.2bn.
Launched in September 2015, OakNorth offers loans of £0.5m to £40m to fast-growth UK businesses and established property developers and investors. Its fintech platform, OakNorth Analytical Intelligence, has helped ensure that it maintains a high credit quality and a clear view of how each business within its portfolio is performing. To date, OakNorth has not had a single default, and the last 12 months saw it receive, over £400 million of repayments. Its clients include some of the most well-known and successful businesses in the UK: LEON, Brasserie Bar Co., NetPay, Baird Capital, Galliard, Frogmore, and The Collective, and its loans have directly helped with the creation of 10,000 new homes (of which c.9,000 are affordable homes and social housing units) and 13,000 new jobs across the nation.
The business’ lending efforts are supported through the range of competitive savings products it offers to both individuals and businesses, and it now has over 40,000 savings customers and a Feefo rating of 4.5 stars thanks to its simple online application and 11-second average phone response times.
Rishi Khosla, CEO and co-founder of OakNorth, commented: “To date, we’ve lent £3bn to growth businesses across the UK*, helping them achieve their ambitions whilst simultaneously enabling the creation of 10,000 new homes and 13,000 new jobs. 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 to reinforce this positive cycle, we will be donating 1% of group profits to supporting charitable causes and social entrepreneurship. Through the licensing of our platform, OakNorth Analytical Intelligence, to bank partners around the world, we will bring a similar impact to entrepreneurs and communities globally.”
*£2.5bn of outstanding total loan facilities with c.£500m of repayments, so total amount lent is £3bn but loan book is £2.5bn. Figures based on deals OakNorth completed since launch in September 2015