OakNorth reports £223m profit as US expansion drives surge in lending

Digital lender OakNorth reported a 33% increase in gross originations in 2025, as activity in the United States accounted for a growing share of its lending and contributed to £223 million in pre-tax profits.

The bank said gross originations rose to £2.8 billion in 2025, up from £2.1 billion the previous year, while total facilities increased 18% to £7.2 billion. Notably, 40% of new lending originated from the US, highlighting the rapid expansion of the lender’s operations in the market it entered in 2023.

The performance follows a decade of growth for OakNorth, during which it has lent more than £15 billion to lower mid-market businesses. The bank estimates this activity has supported over 70,000 jobs and generated more than £40 billion in economic impact.

Despite scaling its lending operations, OakNorth reported continued strong credit performance, with cumulative principal losses of 0.045% over the past ten years. The bank also maintained high levels of profitability and efficiency, reporting an efficiency ratio of 26% and an adjusted return on equity of 22%.

In 2025, the lender increased investment in its US expansion while continuing to support businesses operating across both the UK and US. These included companies such as F1 Arcade, Ultimate Performance, and Mamas & Papas.

OakNorth also advanced its strategic initiatives during the year, including the pending acquisition of Community Unity Bank, the development of its business banking offering, and a partnership with Monite. The bank said it continued to expand its use of artificial intelligence across credit decisioning and operational processes.

Gross revenue for the year reached £605.9 million, with the bank citing improved operating leverage and a reduction in its efficiency ratio from 29% to 26%, partly driven by technology investments.

Rishi Khosla, CEO and Co-founder of OakNorth, said: “Over the past decade, OakNorth has become the leading disruptor serving lower mid-market businesses.

“In 2025, we delivered £605.9m of gross revenue, becoming the only scaled distributor focused on lending to the lower mid-market segment. We maintained our disciplined approach to credit and capital allocation, generating strong retained earnings, while significantly investing for expansion.

“The fact that 40% of our originations now come from the US demonstrates that this model is transferable and competitive in one of the world’s largest lending markets. With significant runway for growth across the UK and US, we’re primed to make our next decade even more impactful than our first.”