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HomeBankingAllica Bank reports first full year of profitability after revenues double

Allica Bank reports first full year of profitability after revenues double

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  1. Allica Bank’s Financial Performance:
    • Allica Bank, a UK challenger bank lending to SMEs since 2020, reported its first full year of profitability.
    • Revenues increased by 141% to £191 million in the 12 months up to 31 December.
    • Customer deposits surged by 75% to £2.6 billion, with SME lending rising by 47% to £2 billion.
  2. Achievement of Profitability:
    • Allica Bank achieved £16.1 million in pre-tax profit, marking the first time it has been profitable since its launch in 2017.
    • CEO Richard Davies attributes the financial success to significant growth in revenue, lending, and deposits, indicating the bank’s proposition for SMEs is gaining traction.
  3. Strategic Partnerships:
    • Allica Bank’s profitability is partly attributed to its strategy of partnering with fintech firms to enhance its offerings.
    • Partnerships with companies like SurePay, ClearBank, and Wise Platform have strengthened its capabilities in areas like Confirmation of Payee (CoP) solutions and cross-border payments.
  4. Financial Backing and Investment:
    • The bank’s financial success has been supported by strong financial backing from investors such as Warwick Capital Partners, Atalaya Capital Management, and TCV.
    • Allica Bank secured around £385 million in total investment across multiple funding rounds, including a £100 million Series C round in December 2022.
  5. Future Plans:
    • Allica Bank aims to scale further, targeting over 10% market penetration in the coming years, leveraging its growing profitability and investor support.

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