Richard Davies/ Allica Bank
Allica Bank targets profitability this year after lending grows 12x in 2021
Figures released by the SME challenger show that its SME lending grew to £560m last year, deposits grew to over £800m and that it's set to make a profit later this year.
Allica Bank has labelled itself an emerging "major force” in SME banking after growing lending more than 12-fold to over £560m last year and says it will be profitable later this year just over two years since its inception.
“Allica has had an exceptional year and we’re rapidly becoming a major force in SME banking at a time when SMEs are looking for a true alternative in the banking market," CEO Richard Davies said.
Figures released by Allica Bank show that SME lending grew more than 12 times year on year to £560m in 2021 while deposits grew to over £800m last year.
The challenger has also forecast that it will make £1bn in committed loan offers this year, compared to £500m last year and that it will complete £3bn of lending to SMEs in the next three years.
Allica Bank, which opened its doors in March 2020, also said it will be profitable in the second half of this year, helped by growing monthly revenues. In 2021, it made a loss of £25m.
Davies, a banking veteran who has held several senior roles including the first CEO of fintech OakNorth Bank, and senior roles with HSBC and TSB and Revolut, added: “We have laid robust foundations for an innovative full banking offering, and believe we are uniquely positioned to become a genuine alternative to the incumbent banks for established SMEs.
“Looking ahead, we’re hugely excited about the plans for our customer proposition which are being enabled by Allica’s proprietary technology and data capabilities.”
Earlier this year, the SME challenger said it was boosting its product portfolio with plans to launch a suite of fixed-rate commercial mortgages.