Recognise Bank has reported its first annual profit after tax following a restructuring of the SME property lender.
The bank made a post-tax profit of £8.9 million in the year to 31 March 2026, compared with a loss of £5.3 million in the previous year.
Its loan book grew by 51.1% during the year to £461.9 million, while deposits increased by 18.8% to £575.5 million. Since the year end, lending has risen above £500 million and deposits have passed £600 million.
The result follows a change in strategy introduced in May 2025. Recognise said it achieved monthly profitability for the first time that month, four months earlier than planned.
During the year, the bank moved its London head office and opened an operations centre in Milton Keynes. It also streamlined its organisational structure as part of a programme intended to simplify operations and improve customer service.
A programme to update its technology platforms has begun, with the bank expecting the new systems to improve customer service and internal efficiency during the current financial year.
Recognise received a £5 million capital injection from its largest shareholder, Parasol V27 Limited, on 31 March 2026. The funding was the second tranche of an investment intended to support the bank’s strategy.
The lender is also expanding its intermediary proposition for brokers and their clients across commercial property transactions.
Steve Pateman, chairman of Recognise Bank, says: “Last year I indicated the foundations were in place for Recognise Bank to become sustainably profitable and I am pleased to report that has been the case with in-month profitability achieved from May 2025.
“As a result of the progress made, we have also been able to recognise a deferred tax asset so that we can report a full year profit after tax and restructuring costs of £8.9m compared with a loss after restructuring costs last year of £5.3m.”
Simon Bateman (pictured), chief executive officer of Recognise Bank, adds: “The last year at Recognise Bank has been about stabilisation, resetting the business and putting in place the right foundations to support our planned growth ambitions that support our strategy and financial plan.
“Our ambition was to achieve in month profitability by September 2025, supporting our plan to deliver full year profitability in 2027. I am pleased to share that we accelerated this trajectory and reached in-month profitability in May 2025, four months ahead of schedule.
“For the first time in the Bank’s history, we are reporting a profit after tax compared to a loss in the previous year. This is an outstanding result, particularly given the scale of transformation over the past year and the challenging macroeconomic environment in which the Bank is operating.
“I am very proud of our achievements in the last year and could not be more excited about the future for Recognise Bank. The journey has only just begun and the opportunities ahead are huge.
“As we enter the next stage of our journey, with the support and passion from the whole team, we are focusing on the continuing growth of the business.”
