Digital bank OakNorth delivered steady performance in 2025, posting a pre-tax profit of £223 million ($289 million) while expanding its lending activities significantly across the UK and US. The specialist lender to entrepreneur-led businesses in the lower mid-market segment reported gross revenue of £605.9 million ($787.7 million), underscoring its position as a key player in supporting ambitious companies that often fall outside the reach of traditional banking.
New loan originations rose sharply by 33 percent to £2.8 billion ($3.7 billion) from £2.1 billion the prior year, pushing the total loan facilities portfolio up 18 percent to £7.2 billion ($9.3 billion).
Notably, the United States accounted for 40 percent of fresh lending volume in 2025, reflecting successful penetration into the world’s largest credit market following the lender’s entry in 2023 amid regional banking turbulence.
Since launching in 2015, OakNorth has extended more than £15.1 billion (approximately $20 billion) in cumulative financing, helping generate over £40 billion ($52 billion) in broader economic value and sustaining more than 70,000 jobs.
Credit quality remained exceptional, with cumulative principal losses across a decade of operations standing at just 0.045 percent—equivalent to £6.9 million against the total facilities granted.
The bank’s return on assets reached 1.4 percent, placing it in the global top 1 percent among commercial banks and among the top five in Western Europe.
Efficiency continued to improve, with the ratio declining from 29 percent in 2024 to 26 percent in 2025 (excluding one-off strategic spending), while adjusted return on equity hit 22 percent.
Operating leverage advanced by 10 percent, aided by targeted investments in artificial intelligence to refine credit assessments and streamline operations.
Strategic moves further strengthened the platform.
OakNorth advanced its US footprint by backing innovative firms such as F1 Arcade, Ultimate Performance, and Mamas & Papas. Pending regulatory clearance, the acquisition of Community Unity Bank will deepen domestic capabilities, complemented by a partnership with fintech Monite to bolster business banking tools.
Since 2024, the lender has incorporated potential AI-driven disruptions into its forward-looking credit models, enhancing risk management without compromising growth.
Rishi Khosla, co-founder and chief executive, highlighted the bank’s decade-long evolution into a sort of disruptor for underserved businesses.
He emphasised disciplined capital allocation, strong retained earnings, and the transferability of the lending approach to competitive environments like the US.
With substantial room to scale on both sides of the Atlantic, Khosla expressed confidence that the coming years would deliver even greater impact than the first decade.
As OakNorth marks ten years since inception, its results demonstrate resilience through economic cycles and a commitment to entrepreneur-driven growth. The full annual report detailing these achievements is signaling continued momentum for the UK-based institution authorised by the Prudential Regulation Authority.
