Tandem Bank, a UK-based neobank that provides retail banking services, reported a net profit of GBP 481,000 (~USD 603,000) in FY2022 (ended 31 December 2022), compared to a loss of GBP 19.4 million (~USD 24.3 million) the prior year.

Total income generated by the bank improved 382.0% YoY to GBP 71.0 million (USD 89.0 million), primarily due to an increase in net interest income to GBP 68.5 million (USD 85.9 million; up 327.7% YoY), supported by the acquisition of Oplo in January 2022.

The bank’s loan book amounted to GBP 1.2 billion (USD 1.5 billion) as of end-December 2022, compared to GBP 437 million (~USD 547.7 million) a year earlier. 

Its deposit base also grew substantially to GBP 1.8 billion (USD 2.4 billion) from GBP 771.1 million (~USD 967.0 million) recorded a year ago, which was fueled by a 182% YoY expansion in its customer base.

The bank’s capitalization ratio (CET1) improved to 15.2% in FY2022 from 14.2% in the prior year, while its liquidity coverage ratio (LCR) was 465.0%, well above the regulatory requirement of 100%. The company also reported a loan-to-deposit ratio of 68.5% compared to 56.7% as of FY2021.