Allica Bank has increased its revenue by 141% to £191m, with a pre-tax profit of £16.1m marking its first full-year profit, three years after it started lending.
Total lending to small to medium enterprises (SMEs) increased 47% to £2bn, while customer deposits increased 75% to £2.6bn.
Allica Bank was recently named the fastest growing UK fintech in Deloitte’s ‘UK Technology Fast 50 2023’
2023 saw the bank launch its business current account, which now has over 2,000 customers – 0.5% of its target segment of established SMEs.
The bank’s asset finance business surpassed £200m in annual lending for the first time since launching the product in 2021.
Allica Bank launched a savings campaign calling for better rates for the UK’s SME savers, highlighting £7.5bn of missing savings interest across the SME market.
The firm’s net interest margin increased to 5.0% in 2023 (3.6% in 2022), and its cost to income ratio was down to 24% to 65.0% (85.7% in 2022).
Richard Davies, CEO at Allica Bank, 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”.
