Tandem Bank has hit a full year of operating profit for the first time in company history after transitioning into a ‘green bank’.
As revealed in the company’s financial report today, the challenger bank’s deposits increased by over 126% in 2022, from £771m to £1.75bn. The firm also increased its lending to £1.2bn, resulting in an operating profit of £4.5m.
While the firm reported a statutory loss of £12.4m, its operating profit is a promising sign for the core business model.
“2022 was a transformational year for Tandem, against the backdrop of a difficult macro-environment,” said Tandem CEO Alex Mollart.
Mollart was appointed as CEO in September after previous chief executive Susie Aliker stepped down.
In her time at the helm, Aliker launched a strategy to turn Tandem into a green bank, with a mission to combine financial services with support of climate-friendly lifestyles.
Mollart has continued these efforts, saying: “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.”
In April, Tandem acquired Loop, a money sharing app that combines social media lending and payments.
This week, fellow challenger bank Monzo announced it had achieved its first monthly profit after narrowing its hefty annual losses from the year prior.