Redwood Bank recorded a pre-tax operating profit of £2.2 million in the year to December 31, 2021, compared to a £1.7m loss during the previous 12 months.

Meanwhile, its loan book increased by 14% to £370m (2020: £324m) and deposits rose by 15% to £438m (2020: £380m).

Gary Wilkinson, CEO and co-founder of Redwood Bank, said: “The fact that we made our first profit, in 2021, is testament to the robustness of our business model.

“We reached this milestone because we continued to offer vital lending support to British businesses during the various Covid-19 lockdowns, when many other mainstream lenders retrenched. We are proud to have played our part in bolstering the resilience of British business.”

Shareholders invests a further £9.9m of Tier 1 capital in the Bank during the year, increasing the total invested to £47.9m.

The Bank recently increased its maximum loan to value (LTV)s on mortgages up to 70% for commercial loans and to 75% for residential loans.

Wilkinson said: “We are an established specialist bank focused on simple commercial property loans and business savings accounts, offering secured mortgages to professional landlords, and business owner occupiers. We are experts in our chosen markets and use that expertise to deliver superior results for our customers and investors.

“Redwood Bank plugs a gap in the market where mainstream banks prefer not to lend. We dare to be different, as we truly understand the challenges of British businesses, responding to their concerns and supporting their need for flexibility and resilience in the face of a crisis.”