UK’s Allica Bank has reported another year of growth in fiscal year 2025 (FY25), with revenue, profit, lending and deposits all rising at the lender, which focuses on small and medium-sized enterprises (SMEs).
The digital bank’s gross revenue for FY25 reached £371.3m, up 27% from £293.1m in 2024.
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Gross profit after risk rose to £145.3m, a 32% increase on the £110.2m recorded a year earlier. Underlying pre-tax profit also grew 34% year-on-year to £43.7m.
Allica Bank described the performance as its “best ever financial results” and said it marked a third consecutive year of profitability.
Lending volumes also increased. The bank’s total loan book stood at £3.7bn at the end of FY25, up 23% from £3bn in the previous year, with growth reported across its core lending lines.
Customer deposits climbed 29% to £5.7bn, compared with £4.4bn in FY24.
The number of active business reward account customers more than doubled to over 14,000 from more than 6,000 in 2024.
Allica Bank CEO Richard Davies said: “2025 was our strongest year yet.
“In a year when we have been investing deeply in tech and proposition enhancements, we have delivered a 34% increase in underlying pre-tax profit – and the number of established SMEs choosing to make Allica their primary bank has more than doubled, showing the demand for our full-service established SME model.”
Meanwhile, Allica Bank also “accelerated” the development of an AI-enabled tech platform designed to expand lending opportunities for established SMEs. It will also support the relationship manager model and deliver faster, lower-cost operations.
It has also begun deploying AI agents to support faster, more accurate lending decisions and provide relationship managers with deeper insights for every customer conversation.
Davies added: “Because we have been building Allica from the ground up on powerful, proprietary technology – with modern clean data architecture and a unified software stack – we are entering this new era of agentic AI with a structural advantage that legacy banks and others relying on third-party systems simply cannot close.
“Our engineering teams are now developing and deploying AI agents and tools across the full technology stack, and we are developing what we believe will be a global first for complex SME lending using AI agents built on our own proprietary data.”
Following a $155m Series D round completed in February 2026, the company said it is aiming for 10% UK market penetration by 2028 and is assessing options for expansion into international markets.
