BankTech Bulletin #27 "OakNorth turns 10: FY25 results, US and the Business ..."

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BankTech Bulletin #27 "OakNorth turns 10: FY25 results, US and the Business ..."

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BankTech Bulletin #27 Equities

Europe including UKOakNorth turns 10: FY25 results, US and the

Business Banking expansion Banks

Jason Napier, CFA

Analyst

jason.napier@ubs.com

A focus on OakNorth Bank: On turning 10 and investing in a broader business +44-20-7568 5037

The BankTech Bulletin series profiles businesses, events and factors which we think Sanjena Dadawala

provide sign-posts to the medium-term outlook for banking. Past editions examined Analyst

themes like platform deposits, digital bank licences, loyalty-driven customer models, sanjena.dadawala@ubs.com

next gen IT and CBDCs and tracked the performance of unlisted firms like Revolut, +44-20-7567 0753

Starling, Monzo and Chase. This note looks at OakNorth's financial and strategic Justin Forsythe, CPA

performance in 2025 based largely on its recently-released annual report. Last year the Analyst

firm delivered a 16% statutory ROTE, from 17% YoY, with profits up 4% vs a FY24 result justin.forsythe@ubs.com

which benefited from net impairment releases and despite investment in the period in +44-20-7567 4191

the buildout of the US business and the UK Business Bank build. OakNorth also cites an

adj. ROE of 22% in FY25, stable on FY24 and FY23, calculated as a return on required

regulatory capital.

16% ROTE, 4% profit growth, 30% cost/income

OakNorth delivered £223m in pre-tax profit in 2025, having grown income, loans and

profits by a compound annual 18%, 14% and 23%, respectively over the last five years.

In 2025, income was up 3% and costs down 4% for 6% more pre-provision profit and a

30% cost/income ratio. Management note that adding back costs relating to strategic