OakNorth Bank Shares Profit with Shareholders
- OakNorth Bank pays its first dividend to shareholders nine years after launch.
- The $40m payout follows bumper profits last year.
- Shareholders benefit from the bank's success with a significant dividend.
In a significant development for the UK banking sector, Oaknorth Bank has declared its first-ever dividend after reporting impressive profits for the last financial year. According to Sky News, the challenger bank, chaired by former City watchdog chairman Lord Turner, informed investors of a special dividend amounting to approximately $40 million (£31.2 million). This marks a pivotal moment for shareholders, as it represents the first capital return since the bank's inception. Founded in 2015, Oaknorth is part of a new wave of lenders, including Monzo and Starling Bank, that emerged in the wake of the 2008 financial crisis. The special dividend will be distributed to institutional investors and employees who hold shares in the company. Notably, Oaknorth has attracted significant backing from major investors, including Japan's SoftBank and Singapore's GIC. Since its launch, Oaknorth has successfully lent £11 billion and maintains an industry-leading loan default ratio, underscoring its robust financial health. The bank, led by co-founder and CEO Rishi Khosla, is currently seeking regulatory approval to establish a representative office in the United States and is exploring potential acquisition opportunities in the region. While Oaknorth has not commented on the dividend payment, the announcement reflects the bank's strong performance and growth trajectory, positioning it as a key player in the evolving landscape of UK banking.