Recognise Bank, an SME property lending bank, has reporting a post-tax profit of £8.9 million for the year ended 31st March 2026 following a £5.3m loss in 2025.
The bank also grew its loan book by 51.1% over the year to £461.9m and increased deposits by 18.8% to £575.5m. Since the year end, it says its loan book has grown to more than £500m and deposits have exceeded £600m.
Following the implementation of a new strategic direction in May 2025, the bank has achieved profitability for the first time. Within the last year, it also relocated its London head office and opened a new operations centre in Milton Keynes to support the next phase of its growth.
Its organisational structure was streamlined as part of a wider transformation programme designed to simplify business operations and enhance customer service.
A refresh of the bank’s technology platforms has also commenced, introducing new solutions which it says will deliver further customer service improvements and increased internal efficiencies in the current year.
In addition, the bank received a £5m capital injection on 31st March 2026 from its largest shareholder, Parasol V27 Limited. The funding represents the second tranche of investment.
“Last year I indicated the foundations were in place for Recognise Bank to become sustainably profitable and I am pleased to report that has been the case with in-month profitability achieved from May 2025,” said Steve Pateman, chairman.
“As a result of the progress made, we have also been able to recognise a deferred tax asset so that we can report a full-year profit after tax and restructuring costs of £8.9m compared with a loss after restructuring costs last year of £5.3m.”
CEO Simon Bateman added: “The last year at Recognise Bank has been about stabilisation, resetting the business and putting in place the right foundations to support our planned growth ambitions that support our strategy and financial plan.
“Our ambition was to achieve in month profitability by September 2025, supporting our plan to deliver full year profitability in 2027. I am pleased to share that we accelerated this trajectory and reached in-month profitability in May 2025, four months ahead of schedule.
“For the first time in the bank’s history, we are reporting a profit after tax compared to a loss in the previous year. This is an outstanding result, particularly given the scale of transformation over the past year and the challenging macroeconomic environment in which the bank is operating.
“I am very proud of our achievements in the last year and could not be more excited about the future for Recognise Bank. The journey has only just begun and the opportunities ahead are huge. As we enter the next stage of our journey, with the support and passion from the whole team, we are focusing on the continuing growth of the business.”