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Annual results reveal savings customer numbers doubled in 2023

Strategy to be the UK’s greener digital bank is bearing fruit, with 28% growth in net interest income and near five-fold increase in underlying profit.

Tandem Bank has delivered a second year of profitability as increasing numbers of mainstream consumers choose the Bank to help reduce their carbon footprint while saving money.

Tandem’s award-winning savings products are a smart and secure home for savers’ money. They offer green-savvy consumers great rates on their savings, which in turn power the bank’s expanding green lending offer, designed to help homeowners and car buyers transition to a greener lower carbon lifestyle.

The bank’s 2023 annual results show Tandem’s strategy to be the UK’s greener digital bank is on course, following the transformational acquisition of leading consumer lender Oplo and the bank’s first full year of profitability in 2022.

The bank has reported a year of measured growth despite challenging economic headwinds and the tightening of its credit risk appetite, managing lending carefully to ensure consumers’ interests remained paramount.

In 2023 the bank accelerated its efforts to help more mainstream consumers transition to a greener lifestyle:

• Savings more than doubled for second year, reaching over £3.6 billion, helping fuel Tandem’s green lending proposition – winning Best App-Based Savings Provider at the annual Savings Champion Awards

• Green and ‘pathway to green’ lending stood at £523 million

• Total lending balances increased to £1.37 billion – an increase of £170 million

• Total customer increased to over 300,000 for the first time since Tandem’s launch, driving 120,000 Tandem Bank app downloads

• Beta launch of Tandem’s Green hub, with over 200,000 visits since launch and over 1,700 personalised Green Home Plan journeys fully completed

• Launched Tandem’s ground-breaking ‘Green Gap’ research tracking the pace at which consumers are moving towards a new greener lifestyle and showing how the market for smart green finance continues to grow

• Announced as a Sunday Times Best Places to Work, and secured several awards for savings, motor finance and mortgages

• Delivered a refreshed community charity programme, launching a new One Million Minutes commitment for volunteering, continuing Tandem’s financial education programme, as well as saving 74,000 tonnes of Co2 in 2023

Tandem’s strategy to be the UK’s greener digital bank has resulted in another year of strong financial metrics:

• Impressive 28.2% growth in net interest income (NII) to £87.8 million, (FY22: £68.5 million) demonstrates a strong and profitable balance sheet

• Lending balances increased to £1.37 billion – an increase of £170 million, up 14.2% (FY22: £1.2 billion)

o £168 million of Home Improvement lending originated, taking the book to £342 million

o £293 million of Second Charge mortgages originated, increasing total to £682 million

o £114 million of Motor Finance originations, after 2022’s successful launch – total motor finance lending now stands at £116 million

• Deposits increased to over £3.6 billion – more than doubling the book for a second consecutive year (FY22: £1.75 billion) and helping to grow the bank’s total customer numbers to over 300,000 for the first time

• Full Year underlying profit of £17.2 million – representing a second year of profitability, a near five-fold increase on 2022 (FY22: £3.6 million)

• Robust net interest margin (NIM) performance at 6.8% (FY22: 6.7%)

• Cost income ratio reduced to 74.1% (FY22: 80.8%) demonstrating disciplined delivery of synergies from recent acquisitions

• Balance sheet remains resilient with Common Equity Tier 1 ratio of 16.1% (increased from 15.2% FY 22)

Alex Mollart, Tandem Chief Executive, said: “Tandem’s strategy of becoming the UK’s greener, digital bank is working. We’re profitable for a second year running and delivering growth across deposits, lending and revenue – attracting more green-savvy consumers to the bank.

“It’s great to see so many customers buying into our mission to help the transition to a lower carbon lifestyle – and save money along the way. We’ve seen big increases in customers trusting their hard-earned savings with Tandem, while helping to fund the green lending we offer to customers looking to switch to a greener lifestyle.

“I’m also proud to see Tandem leading the way with innovative new green products and services, with the launch of our Green Hub and continued Green Gap research – and we were all thrilled to see our hard work rewarded by being named as a Sunday Times Great Place to Work.”

Key results

Business performance highlights

Throughout 2023, Tandem has continued its transition, merging three entities (Oplo, Allium and the ‘old’ Tandem) into a single bank, underpinned by a single strategy: “Banking for a greener future”.

This has seen the broadening of the bank’s offering, giving customers access to affordable finance, while helping them transition to a greener lifestyle:

Savings: Award winning proposition, becoming the first bank since 2009 to offer a market leading 5% interest rate on instant access savings. The deposit book has now more than doubled for a second consecutive year to over £3.6 billion as more and more green-savvy savers chose Tandem.

Lending: With the help of Tandem Savers, green and ‘pathway to green’ lending, stood at £523 million at the end of 2023.

Motor Finance: Forward-thinking and aligned with the UK’s net zero target for 2050, Tandem’s award-winning proposition helps car buyers finance lower emission vehicles through an approved network of partners for newer used vehicles.

Mortgages: We're building the UK’s greener digital bank rewarding customers who make greener financial choices. Our Specialist Mortgage product offers a rate reduction of up to 0.3% for new customers whose home has an energy efficiency (EPC) rating of A, B or C.

Benefiting customers’ pockets and the planet, Tandem offers greener ways to save, borrow, spend and share. From low emission motor loans, to lending for greener home improvements, to EPC discount mortgages and green savings, its products make it easier for more people to choose a greener lifestyle – helping save money, whilst reducing carbon footprints.

Tandem Money Limited Annual Report and Accounts for 2023 is available here

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