Richard Davies, CEO of Allica Bank
Challenger business lender Allica Bank said it achieved monthly profitability in June last year and reached a pre-tax profit for the second half of the year of £3m.
Its full-year pre-tax loss stands at £1.6m, a significant reduction from the £25m loss the year prior.
Richard Davies, CEO of Allica Bank, said: “Allica has entered 2023 with an excellent platform to continue to grow and expand its offer to SMEs – and in Q1 we’ve already seen profitability growing strongly, with very prudent capital and liquidity positions supporting our continued growth.”
Alongside Allica Bank’s monthly profitability and its 2022 financial results, the bank cites its lending balance shot up by £782m to £1.35bn, while deposits rose by 78% to £1.5bn.
The bank, which targets SMEs, offers financial services like current accounts, savings accounts, asset finance and commercial mortgages.
The bank has announced it’s hiring former British Business Bank chief commercial officer Patrick Magee as a non-executive director.
“Patrick’s deep experience in SME financing, corporate finance and government relations will add to our strong board and supports our ambitions to lead the market for SME banking in the UK,” said John Maltby, chair of Allica Bank.
The profitability milestone for the London-headquartered fintech comes shortly after it bagged £100m in Series C investment in addition to a further £55m.