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."