OakNorth has lent £1.1bn to businesses through pandemic

Rishi Khosla, CEO, OakNorth

Challenger bank OakNorth has lent £1.1bn to businesses through the Covid-19 crisis in 2020 while also notching up pre-tax profits of £78m.

In the last six months, the lender has approved a £5.5m loan to Lancashire-based family-run housebuilder, Baxter Homes and completed £4m loan to Cheshire-based financial advisory firm, Cullen Wealth.

It also provided a £30m loan to Staycity Group, Europe’s leading aparthotel operator and lent £50m to Arora Group, the property and hospitality business founded by businessman, Surinder Arora.

In addition to this, OakNorth has supported clients with the Coronavirus Business Interruption Loan Scheme (CBILS) and Coronavirus Large Business Interruption Loan Scheme (CLBILS).

Since 2015, OakNorth Bank has lent over £5.1b to the ‘missing middle’ – growth businesses which have been in banking’s blind spot, with £1.6b of facilities repaid.

Rishi Khosla, CEO and co-founder of OakNorth Bank, said: “Given the challenges of the pandemic on society and the economy over the last year, OakNorth’s mission – to empower the Missing Middle – has never been more important.

“As demonstrated by the tens of thousands of new jobs and homes that have been created off the back of the c.£5B we’ve lent to date, these businesses are the most significant contributors to economic and employment growth.

“They will play a vital role in the post-pandemic economic recovery, so we’re proud to have continued supporting them through not one but two unprecedented events – the Brexit vote and the withdrawal process that followed, and COVID-19.

“In doing so, we’ve been able to build a robust and profitable business supported by 170,000 loyal savers.”