Digital bank Zopa has reported its first full year of profitability.聽
Launched in June 2020, the milestone makes Zopa one of the fastest digital banks in the UK to turn an annual profit.
Zopa swung to a pre-tax profit of 拢15.8 million for the financial year ending 31st December 2023 from a pre-tax loss of 拢26m for the previous year.
Total operating income for the same period to 31st December 2023 was 拢222m, up 47.8% year-on-year.
Zopa鈥檚 customer base grew to over a million in the period across its newly expanded product offering. The bank鈥檚 deposit base increased 14.9% to 拢3.4 billion; loans on balance increased 27.3% to 拢2.7bn.
In 2023, it completed two 拢75m funding rounds, participated in the acquisition of DivideBuy鈥檚 lending and technology capabilities, and launched the Smart ISA to help Brits 鈥榮ave better tax free鈥�.
鈥�2023 was a landmark year as we achieved our first full year of profitability, grew to over a million customers, and maintained our market leading net promoter score,鈥� said Jaidev Janardana, CEO.聽
鈥淎cross all our products, the opportunity is huge and we remain passionate about changing customers鈥� relationship with money for the better. We are uniquely placed to achieve this due to our customer-centric culture, lending expertise, and use of technology and data.聽
鈥淭ogether, these capabilities create an exceptional experience to help customers reach their financial goals.鈥�
Buoyed by its profitable growth, Zopa Bank is now setting its sights on the UK current account market.