Digital bank Zopa today reports its first full year of profitability. Launched in June 2020, the milestone makes Zopa one of the fastest digital banks in the UK to turn an annual profit.

Zopa Bank swung to a pre-tax profit of £15.8 million for the financial year ending 31 December 2023 from a pre-tax loss of £26 million for the year ending 31 December 2022. Total operating income for the same period to 31 December 2023 was £222 million, up 47.8% year-on-year.

Zopa’s customer base grew to over 1 million in the period across its newly expanded product offering. The bank’s deposit base increased 14.9% to £3.4 billion; loans on balance increased 27.3% to £2.7 billion.

Alongside its impressive growth, Zopa Bank maintained its industry-leading net promoter score (NPS) of 72 aided by its proprietary technology which enabled it to offer great value, and straightforward experiences at speed. Zopa’s technology has also allowed it to operate efficiently as it has scaled, further driving its cost-to-income ratio down to 38.7%.  

Zopa’s profitability was first announced at Innovate Finance’s Global Summit and comes off the back of a strong year. Despite the challenging macroeconomic environment, Zopa Bank saw a 30% growth across its products and a 29.7% increase in total revenue to £226 million.

In 2023, it completed two £75 million funding rounds, participated in the acquisition of DivideBuy’s lending and technology capabilities, and launched the Smart ISA to help Brits save better tax free.

Jaidev Janardana, CEO at Zopa Bank said: “2023 was a landmark year as we achieved our first full year of profitability, grew to over a million customers, and maintained our market leading net promoter score. Across all our products, the opportunity is huge and we remain passionate about changing customers’ relationship with money for the better. We are uniquely placed to achieve this due to our customer-centric culture, lending expertise, and use of technology and data. Together, these capabilities create an exceptional experience to help customers reach their financial goals.”

Buoyed by its profitable growth, Zopa Bank is now setting its sights on the UK current account market.

Saturated with choice, today consumers have more financial accounts and apps than ever before, resulting in greater complexity. The Zopa current account will reinvent how customers manage their money, making the experience easier and more integrated.

Zopa Bank has a track record of launching products that deliver strong outcomes for customers. In 2023 Zopa savers earned £126 million in interest, bringing home 2.7x more interest on average compared to high street banks.