Allica Bank has reported a near doubling of annual profits to £29.9 million in 2024, up from £16.1 million the previous year.
Publishing its latest annual report, Allica attributed the jump in profits to strong growth in lending and deposits, alongside continued investment in its proprietary technology. In its second full year of profitability since launching lending operations in 2020, the bank saw its loan book surpass £3 billion while customer deposits grew to over £4 billion.
Allica’s growth strategy has centred on technology built in-house for the needs of established SMEs – typically firms with between 5 and 250 employees – who represent a third of the UK economy. The bank now employs over 200 product and engineering staff, who delivered more than 3,500 technology releases last year, including new integrations with Wise, Sage and Xero.
Among its flagship products is the Business Rewards Account, a current account designed to offer SMEs enhanced functionality and benefits. By the end of 2024, the account had attracted more than 6,000 established SME customers. The bank also reported strong satisfaction scores, including a Trustpilot rating of 4.6 and a Net Promoter Score of +67.
Allica’s broker-focused digital tools have played a key role in expanding its lending activity, with developments such as an automated decision-in-principle tool and asset finance auto-decisioning introduced to streamline application processes. The year also saw Allica broaden its lending proposition through the acquisition of bridging lender Tuscan Capital.
Chief executive Richard Davies said the performance reflected growing demand from SMEs for alternatives to the high street.
“2024 has been our best year yet, with significant growth in revenue, lending and deposits demonstrating that we are offering a genuine alternative for established SMEs from the high-street banks and delivering on our promise to give them the banking they deserve,” he said.
“Allica have invested heavily in our proprietary technology capabilities to ensure we have the foundations in place to continue to scale at pace, in terms of the amount of established SMEs we’re supporting and the ways we’re supporting them.”
Davies (pictured) also highlighted Allica’s broader advocacy on behalf of the SME sector. In 2024, the bank campaigned for changes to Basel 3.1 regulations to support greater SME lending, and launched the Great British Savings Squeeze campaign to encourage reform of the business savings market. It plans to continue that work in 2025, including lobbying for an expansion of the Growth Guarantee Scheme and a higher FSCS deposit protection limit for businesses.
“The pace of Allica’s growth is testament to the frustration that our customers feel with the status quo, and that Allica is offering something truly exciting and innovative,” Davies added. “We are determined to continue championing the needs of SMEs across the country, and hopefully change business banking for good.”
The bank has set its sights on reaching 10% of the established SME banking market within three years.
