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Tandem turns in first underlying profit

Tandem turns in first underlying profit

UK challenger bank Tandem has reported its first full year of underlying profit, joining fellow challengers Monzo and Starling on the path to profitability.

The bank booked a 128% uplift in retail deposits from £771m to £1.75bn across over 60,000 customers and reported 381% revenue growth.

All told, Tandem generated over £71m worth of income, resulting in a £4.5m underlying operating profit and statutory loss before tax of £12.4 million.

Tandem has repositioned itself as a green alternative to traditional mainstream banks, offering customers loans, savings and mortgage products under the epitaph 'Banking for a Greener Future'.

The bank broke through £500m in green lending and reported £238m of green home improvement loans. Fully 68% of all loans originated from within the sustainable policy framework. The strategy has been backed by a tree planting campaign which saw 35K trees planted in 2022.

Alex Mollart, Tandem’s CEO, says: “Our shift to become a greener bank has given us a single purpose to get behind, aligning all of our efforts to ensure we support the UK’s transition to a carbon neutral economy. This has helped us achieve an underlying operating profit for the first time and, importantly, provides a path to delivering ongoing and sustainable profitability."

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