Gatehouse Bank has reported a fifth consecutive year of profitability, with post-tax profit rising 20% to £3.8 million in 2024, driven by disciplined growth across its home finance and Build to Rent operations.

The Shariah-compliant bank, which specialises in ethical property finance, announced that total home finance originations for the year stood at £148 million.

Although the overall home finance portfolio shrank slightly from £1.224 billion in 2023 to £1.168 billion, the bank said this 4.6% reduction reflected a planned sale of £109 million in assets under a forward flow arrangement.

Chief executive Charles Haresnape said the bank had continued to “challenge in our chosen specialisms” while delivering a customer experience that helped drive its net promoter score to a record high of 71+.

He added that Gatehouse saw “appetite for further growth in 2025” across its specialist lending markets.

LENDING

The bank reintroduced a number of lending features during the year to support both homeowners and landlords. Its Home Purchase Plans returned with finance available up to 95% of property value to assist first-time buyers, while its buy-to-let offering was enhanced through the return of top slicing, allowing landlords to use personal income to bridge rental shortfalls.

Gatehouse’s green home finance products continued to play a central role in its lending proposition. These provide reduced rental rates for properties rated A or B for energy efficiency and include carbon offsetting for the average UK property during the fixed term.

As part of its digitalisation strategy, the bank also expanded its online Decision in Principle service to international customers. The number of DIPs completed online more than doubled year-on-year to 8,700.

DEPOSITS

Retail deposits fell marginally by 2.1% to £1.289 billion, in line with business strategy. The bank’s Woodland Saver fixed-term deposits and cash ISAs continued to attract customers, with more than 50,000 trees now planted through its partnership with Forest Carbon.

Its Build to Rent business, consolidated under the Gatehouse Living Group banner, also reported strong momentum. In 2024, the Group completed the sale of an 800-home single-family housing fund and entered into a new strategic venture with a UK-based private equity firm, acquiring more than 1,000 homes from national housebuilders.

Chief financial officer Danesh Mahadeva said the results reflected “progress across our core markets”, adding: “I am confident that the Bank is well placed to grow its origination capability further both on and off balance sheet.”

The lender also marked five years since it became a founding signatory to the UN Principles for Responsible Banking. It refined its ESG strategy around biodiversity, financial inclusion, climate change and community wellbeing, and was certified operationally carbon neutral for a fourth consecutive year.

Despite its wider ESG and charitable initiatives, Gatehouse remains focused on profitability and growth through its lending strategy. As the market evolves, the bank appears poised to increase originations in 2025 while maintaining its position as a specialist player in the UK’s home finance and Build to Rent sectors.