Redwood Bank has announced a significant increase in profit before tax, reaching £5.5m in 2023, up from £2.3m in 2022.
This growth comes as the bank prepares for a reverse takeover by R8 Capital Investments plc, which is expected to complete in the third quarter of the year.
Gary Wilkinson, CEO and co-founder, expressed pride in the bank’s performance, highlighting its resilience amidst challenges such as the pandemic, Brexit, and rising interest rates. “Our proven business model has secured the trust of our brokers and customers, who know we will go the extra mile to support them to grow their businesses,” he said.
The bank’s success was driven by a £8m increase in net interest income, despite higher impairment charges and administrative costs. Redwood’s loan book grew to £414m, and customer deposits reached £500m.
Jonathan Rowland, chairman and shareholder of Redwood’s parent company and R8, noted the reverse takeover would mark “an exciting new chapter in the Bank’s future development.”
