An award-winning financial institution has reaped the rewards of continuous to lend to British companies all through the pandemic by reporting its first revenue.
When different lenders pressed pause on plans to help companies within the wake of COVID-19, Redwood Financial institution continued to spend money on SMEs all through the UK, serving to the nation to rebuild the economic system.
The specialist lender, famend for having its finger on the heart beat of enterprise funding necessities, recorded a pre-tax working revenue of £2.2 million within the yr to December 31, 2021 (2020: loss £1.7m), whereas its mortgage ebook elevated by 14 per cent to £370m (2020: £324m) and deposits rose by 15 per cent to £438m (2020: £380m).
Gary Wilkinson, CEO and Co-Founding father of Redwood Financial institution, stated: “The truth that we made our first revenue, in 2021, is testomony to the robustness of our enterprise mannequin. We reached this milestone as a result of we continued to supply very important lending help to British companies in the course of the numerous COVID-19 lockdowns, when many different mainstream lenders retrenched. We’re proud to have performed our half in bolstering the resilience of British enterprise.”
The outcomes illustrate the resilience of Redwood Financial institution’s enterprise mannequin at probably the most difficult instances for UK companies, with shareholders investing an additional £9.9m of Tier 1 capital within the Financial institution in the course of the yr, growing the full invested to £47.9m.
The Financial institution just lately elevated its most Mortgage to Worth (LTV)s on mortgages as much as 70 per cent for industrial loans and to 75 per cent for residential loans. These adjustments are a part of the Financial institution’s plans and dedication to facilitate better lending choices and to drive funding into and by SMEs.
Mr Wilkinson stated: “We’re a longtime specialist financial institution centered on easy industrial property loans and enterprise financial savings accounts, providing secured mortgages to skilled landlords, and enterprise proprietor occupiers. We’re consultants in our chosen markets and use that experience to ship superior outcomes for our clients and buyers.
“Redwood Financial institution plugs a spot available in the market the place mainstream banks favor to not lend. We dare to be totally different, as we actually perceive the challenges of British companies, responding to their considerations and supporting their want for flexibility and resilience within the face of a disaster.”
Redwood Financial institution was ‘born within the cloud’ in 2017, with its forward-thinking infrastructure serving to it obtain one of many quickest ‘licence-to-launches’ in UK banking historical past. Having began with a crew of 12, the Financial institution now employs greater than 125 workers.