Commercial Finance
Redwood Bank doubles profit before tax to £5.5m
Specialist lender Redwood Bank has doubled its profit before tax year-on-year to £5.5m in 2023, the third consecutive year of profit.
According to Redwood Bank, it reported a profit before tax of £2.3m in 2022 and £2.2m in 2021. The latter is the first year it reached profitability.
The firm added that the increase in profit was due to a rise in net interest income (NII) of £8m, which is partially offset by higher impairment charges of £300,000 and higher administrative costs of £4.4m.
Redwood Bank added that its loan book has grown by £11m to £414m and total customer deposits rose by £53m to £500m.
In October last year, Redwood Bank said that its parent company, Redwood Financial Partners (RFPL), had signed head of terms for the reverse takeover of R8 Capital Investment in a “strategic move to raise capital”.
Gary Wilkinson (pictured), Redwood Bank’s CEO and co-founder, said: “I am incredibly proud of our results, especially as we stand on the verge of a momentous event in the bank’s story.
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“From a standing start, and despite battling the formidable headwinds created by a mix of the pandemic, Brexit, a cost-of-living crisis and rising Bank of England base rates, Redwood Bank has achieved incredible results.
“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. We have never shied away from the challenges; rather, we have met them head-on, and the profits we have achieved are testament to our commitment to back British business.”
He continued on to say that the planned reverse takeover would “allow the bank to grow the balance sheet significantly without proportionately increasing costs and enable us to deliver enhanced stakeholder value”.
Wilkinson said that supporting the successful completion of the “reverse takeover” is an “area of key focus for us, and we hope it will be finalised in Q3”.
Jonathan Rowland, chairperson and shareholder of RFPL and R8, said: “I am delighted to see such a strong set of results for the bank, and the reverse takeover will provide a fantastic opportunity to launch an exciting new chapter in the bank’s future development.”