Zempler Bank Reports Record Revenues and £3.3M Pre-Tax Profit

Zempler, the microbusiness-focused UK digital bank, has today published its full year results for the financial year ending 31st March 2024, announcing a pre-tax profit of £3.3m from record revenues of £70m.

The firm, previously known as Cashplus Bank, rebranded as Zempler Bank in July 2024.

The performance represents strong progress, with a small increase in profit-before-tax, reflecting a significant investment in product capability, rebrand preparation and key strategic initiatives that will enable future growth. 

The investments included the full insourcing of Zempler’s UK customer service operation, helping secure top five rankings in three categories of the CMA’s recent independent survey of bank service quality, including second place in SME credit service.

The firm also increased its net operating income by 29% to £53m.

Zempler opened over 169,000 new customer accounts during the financial year, a 10% year-on-year acceleration, including a 14% increase in sales of the key microbusiness current account product.

The company grew loans and advances by 23% reflecting the continued “test and learn” strategy for delivering lending solutions to microbusiness customers. 

Rich Wagner, CEO, Zempler Bank: “We have delivered a strong performance, with growth in customer numbers and revenues allowing us to invest in product capabilities and initiatives to support our future growth ambitions, including the insourcing of our UK customer service operation and enhancements to our technology infrastructure.

“Despite this investment, we have reported an increase in profits, highlighting the strength of our business model and product economics.

“As a founder CEO, the decision to rebrand was not taken lightly, but I am excited to be moving forward as Zempler Bank as we continue with our mission to provide UK microbusiness, who too often remain poorly served, with the simple banking products that will help them succeed.”

Recent Zempler research found that microbusinesses and startups face significant barriers, with the majority of entrepreneurs (61%) rely on personal saving to start their own business, at an average cost of £11,000 and nearly half relying on a personal credit card.

Looking to the year ahead, Zempler Bank expects to focus on continued profitable growth to strengthen its capital position and support the objective of scaling the business.

Over the coming months, Zempler will continue to focus on the bank’s core business current account and has plans to introduce product features for larger microbusinesses as well as growing lending through existing overdraft and credit card products.