Digital bank Tandem reported its third year of profitability in the 2024 financial year.
The fintech – which brands itself as “the UK’s greener digital bank” – recorded a 40 per cent jump in underlying profit to £24.1m. This was up from £17.2m in 2023.
Tandem’s assets under management topped £1.5bn at the end of 2024 – a 5.2 per cent increase on the previous year.
Revenue jumped nine per cent to £98.7m. Green lending increased nine per cent to £572m, making up 38 per cent of its total loan book.
This came as operating expenses maintained a steady level at £64.5m, a small increase from £63.7m in 2023.
The bank’s net interest income slid to £86m, dipping from £89m.
Many lenders felt the benefits of high interest rates in previous reporting period, which reached a post-financial crisis high of 5.25 per cent in 2024.
But, as the Bank of England whittled rates down to 4.5 per cent – which they currently stand at – lenders have felt the squeeze on income.
Tandem grew its motor finance and home lending arms
Tandem broke into the motor finance and home loaning market in 2023, offering consumers its “green offering.”
These loans are “designed to help homeowners and car buyers transition to a greener lower carbon lifestyle”.
The bank achieved £160m of new motor finance lending, and £114m in home lending in 2024.
Alex Mollart, chief executive at Tandem, said: “We knew 2024 was going to be an important year for Tandem and we’ve worked incredibly hard to get the bank to a place where we’re now
posting our first statutory profit.
“We’ve done it whilst delivering new and innovative green products to help build a greener digital bank that empowers the transition to a lower carbon lifestyle and helps save money
along the way.
“Our mission is to make it easier for people to choose a greener lifestyle. It sounds simple, but as products and services get more expensive, environmental rules and regulations get more complex and banks offer increasingly limited services on old tech. What Tandem is doing is, in my view, quietly revolutionary.”
