British fintech company Zopa Bank has reached annual profitability for the first time.
The digital bank reported a pre-tax profit of £15.8m for the year ended 31 December 2023, up from a loss of £26m in the year prior.
Zopa said its customer base has now grown to over one million people since its 2020 launch.
Total operating income for the year grew by 47.8% to £222m, while its deposit base grew by 14.9% to £3.4bn.
Zopa, which provides deposit accounts, loans and credit cards, said it is now targeting the UK current account market.
“Across all our products, the opportunity is huge and we remain passionate about changing customers’ relationship with money for the better,” said Jaidev Janardana, CEO of Zopa Bank.
It marks the latest UK digital bank to achieve profitability. In 2022, Starling Bank reported its first full year of profit, while OakNorth achieved the milestone in 2018.
Last year challenger bank Monzo reported its first monthly profitability, but it is yet to post annual profits.
Zopa reaching annual profitability has created further anticipation over its long-awaited IPO.
Janardana told the Financial Times that the company is ready to list and would preferably do so in London.
However, there is uncertainty over the timeline, with London grappling with a dearth of listings, causing some tech companies who had been weighing up an IPO to put plans on hold.
After securing £75m in debt funding last September, Zopa told UKTN that it was waiting for the “right macroeconomic and market conditions” to IPO.
Last year, Zopa Group acquired the DivideBuy brand, trade, workforce and assets for its embedded finance division, which connects merchants and customers.
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