Recognise Bank is pleased to release its Annual Report for 2024.
During the year, Recognise Bank made progress in growing its business, achieving an increase in its loan book of 148% to £303m and in deposits of 106% to £412m. Overall, the Bank improved its financial performance, with the loss for the year reducing to £9m.
Recognise is proud to be acknowledged for its ongoing commitment to providing exceptional financial services to both personal and business customers. Over the past 12 months, our dedication to innovation and customer satisfaction has been reflected in a series of industry award nominations, including winning Best Monthly Savings Provider at the Moneynet Personal Finance Awards, alongside shortlist nominations at the Business Moneyfacts Awards and the British Bank Awards.
Since the year end, we have secured a further £25m capital commitment from our majority shareholder Parasol V27, with the first tranche of £20m being received on 1 November 2024 and a further commitment of £5m is scheduled for October 2025.
The additional capital underpins a restructuring of the Bank which will position it initially as a provider of structured property finance solutions but with the longer-term aim of building out a broader SME proposition. The restructuring will take 12 to 18 months and will result in a Bank that is achieving a return on equity at or above 10%, thereby generating capital to fuel the next stage of growth which will see returns improve towards the mid-teens range.
Commenting on the results, Chairman, Steve Pateman, said “It is encouraging that the Bank continued to see high customer satisfaction scores as well as repeat business above the industry norms during the year, which indicate that our strategy of being best in class is succeeding. And whilst the Bank has yet to achieve sustainable profitability, the steps now being taken should allow it to do so with a cost base that is appropriately aligned to the balance sheet trajectory, whilst maintaining a risk appetite that is appropriate for our level of capital resources. I look forward to reporting positive progress towards these objectives in our next Annual Report.”
Simon Bateman, CEO (subject to regulatory approval), added, “Following our recent capital injection, we are excited to build upon the strong foundations the team put in place during 2024 as we continue our journey to profitability and delivering value to our customers and stakeholders.”
Read the full annual report for 2024 here: 2024-Annual-Report-Accounts.pdf
