Digital bank Zopa has reported its first full year of profitability. 

Launched in June 2020, the milestone makes Zopa one of the fastest digital banks in the UK to turn an annual profit.

Zopa swung to a pre-tax profit of £15.8 million for the financial year ending 31st December 2023 from a pre-tax loss of £26m for the previous year.

Total operating income for the same period to 31st December 2023 was £222m, up 47.8% year-on-year.

Zopa’s customer base grew to over a million in the period across its newly expanded product offering. The bank’s deposit base increased 14.9% to £3.4 billion; loans on balance increased 27.3% to £2.7bn.

In 2023, it completed two £75m funding rounds, participated in the acquisition of DivideBuy’s lending and technology capabilities, and launched the Smart ISA to help Brits ‘save better tax free’.

Zellis Group acquired in £1.25bn deal

“2023 was a landmark year as we achieved our first full year of profitability, grew to over a million customers, and maintained our market leading net promoter score,” said Jaidev Janardana, CEO. 

“Across all our products, the opportunity is huge and we remain passionate about changing customers’ relationship with money for the better. We are uniquely placed to achieve this due to our customer-centric culture, lending expertise, and use of technology and data. 

“Together, these capabilities create an exceptional experience to help customers reach their financial goals.”

Buoyed by its profitable growth, Zopa Bank is now setting its sights on the UK current account market.

Tech Essential: How LinkedIn drives sales at our startup