OakNorth, the digital bank focused on the lower mid-market, has announced a pre-tax profit of £223 million for 2025. This financial milestone follows a year of significant growth, particularly in the US, where the bank’s tailored lending model is gaining rapid traction among entrepreneurs.
Global momentum and US market penetration
The bank saw its gross originations rise to £2.8 billion in 2025, a 33% increase compared to the £2.1 billion recorded the previous year. A standout highlight of the report is that 40% of these originations came from the US. Despite only entering the American market in 2023, OakNorth’s expansion has proven highly effective, demonstrating the scalability of its lending model in one of the world’s most competitive financial landscapes.
Key financial metrics for 2025 include:
- Total facilities: Increased by 18% to reach £7.2 billion.
- Efficiency ratio: Improved from 29% to 26%, driven by AI-led operational leverage.
- Adjusted ROE: Stood at a robust 22%.
A decade of disciplined lending
Marking its tenth year of operation, OakNorth has now surpassed £15.1 billion in total lending. The bank has maintained a remarkably clean balance sheet throughout global economic disruptions, with cumulative principal losses of just 0.045% over the decade. This performance places OakNorth within the top 1% of commercial banks globally in terms of return on assets.
Strategic investments and AI integration
In 2025, the bank continued to reinvest its profits into long-term growth initiatives. This included the pending acquisition of Community Unity Bank, the strategic tech transaction with Monite, and the deeper integration of AI capabilities into its credit decision-making processes. These investments are designed to support businesses operating across both the UK and US, such as F1 Arcade and Mamas & Papas.
CEO commentary
Rishi Khosla, CEO and Co-founder of OakNorth, commented on the company’s trajectory:
“In 2025, we became the only scaled disruptor focused specifically on lending to the lower mid-market segment. The fact that nearly half of our originations now come from the US proves that our model is both transferable and highly competitive. With a significant runway for growth ahead, we are primed to make our next decade even more impactful than our first.”
