UK challenger bank Zempler Bank has reported its third consecutive year of pre-tax profit, as customer deposits and interest income increased.
Zempler, which focuses on microbusinesses, reported pre-tax profits of £5.2m in the year ending 31 March 2025, a 58 per cent increase on the previous year.
Zempler, which was founded in 2005 as Cashplus, reported revenues of £68.2m in the period. The challenger bank, which garnered a UK banking licence in 2021, focuses on microbusinesses which it says are underserved by high-street banks.
Customer deposits grew 15 per cent to £626m while Zempler recorded a slight uptick in its number of business customers to just over 170,000 open accounts. Interest income was up from £34m to £37m over the year, while total income increased by more than seven per cent to £68.2m.
At the end of 2024, Zempler, which rebranded to its new name last year, announced it would be laying off around five per cent of its staff. Zempler’s total headcount as of the end of March 2025 was 338.
Rich Wagner, CEO, Zempler Bank:
"Zempler’s growing profitability will be a key driver of our strategy over the next 12 months as we continue to optimise our business, strengthen our capital position and diversify our business through lending growth.
"The year ahead is set to hold challenges for many of our customers and we know that confidence in the UK economy and the spending power of consumers is under pressure from macroeconomic conditions and that many small firms are facing an increasing tax burden."
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