Tandem Bank posted its first full-year profit in 2022 as retail deposits more than doubled to £1.8 billion.

Tandem, which employs more than 500 people in Blackpool, Cardiff, Durham, London and Manchester, reported underlying operating profit of £4.5 million.

Entering the second charge mortgages market for the first time, it originated £350m of deals there while approving £238m of green home improvement lending, up from £136m in FY21.

Billed as the UK’s greener bank, digital challenger Tandem was founded in 2014 and bought Harrods Bank in 2018 followed by green home improvement loan specialists Allium Lending Group in 2020. It then merged with responsible lender Oplo last year under the Tandem brand.

It recently acquired money-sharing FinTech Loop Money.

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“2022 was a transformational year for Tandem, against the backdrop of a difficult macro-environment,” said Alex Mollart, Tandem CEO.

“Our shift to become a greener bank has given us a single purpose to get behind, aligning all of our efforts to ensure we support the UK’s transition to a carbon neutral economy. This has helped us achieve an underlying operating profit for the first time and, importantly, provides a path to delivering ongoing and sustainable profitability.

“We’ve already seen success across early 2023 too, I’m excited for what Tandem has to offer, including an exciting delivery roadmap and expanding our technical capabilities – evidenced already this year, with our recent acquisition of Loop Money – as well as continuing our mission in supporting greener living up and down the country.”

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