UK-based challenger bank Tandem has announced its first full year of underlying profit, positioning itself alongside peers such as Monzo and Starling on the road to profitability.
The bank experienced a substantial increase in retail deposits, surging by 128% from £771 million to £1.75 billion, attracting over 60,000 customers. Additionally, Tandem reported a remarkable 381% growth in revenue, generating over £71 million in total income. This resulted in an underlying operating profit of £4.5 million, despite posting a statutory loss before tax of £12.4 million.
Tandem has strategically redefined itself as an eco-conscious alternative to traditional banks, marketing its financial products, including loans, savings accounts, and mortgages, under the tagline “Banking for a Greener Future.” The bank has reached a significant milestone, surpassing £500 million in green lending and issuing £238 million in green home improvement loans, with 68% of all loans operating under its sustainable policy framework. This commitment to sustainability is complemented by a tree-planting initiative that resulted in the planting of 35,000 trees in 2022.
CEO Alex Mollart emphasizes the importance of this strategic shift: “Our transformation into a greener bank has unified our purpose, aligning our efforts to support the UK’s transition to a carbon-neutral economy. This focus has enabled us to achieve an underlying operating profit for the first time and creates a pathway toward sustainable profitability.”