Allica Bank reports first full-year profit of £16.1m

This was compared to a loss of £1.6m for the lender in 2022. 

Allica Bank, which provides commercial loans, buy-to-let (BTL) mortgages and asset finance to SMEs, saw its lending rise 47% to £2bn last year. It attributed this to organic growth in lending to established SMEs. 

The lender’s new organic lending totalled £729.1m in 2023, up from the previous year’s total of £565.9m. 

It also passed the £200m threshold for asset finance lending. 

Allica Bank said commercial finance brokers were its “largest channel” for lending, and it ended the year with an 88% ‘good’ or ‘excellent’ rating from intermediaries. 

It also said lending primarily through intermediaries allowed Allica Bank to control the flow of new loans onto its balance sheet and manage its growth in lending. 

The lender is aiming for 10%-plus market penetration in the coming years, it said, to “transform banking for established SMEs” and “drive true market-wide change”. 

Its net interest income (NII) rose 64% to £80m, due to growth in its balance sheet. It also saw its interest margin improve from 3.6% to 5%. 

Allica Bank’s revenue increased 141% to £191m. 

An ‘incredibly successful’ year for Allica Bank 

Richard Davies, CEO of 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,” he added.