Gatehouse Bank reports robust financial performance and four consecutive years of profitability

Gatehouse Bank has published its annual results for the year ending 31st December 2023.

The Bank has reported four consecutive years of profitability, with post-tax profit for 2023 amounting to £3.2 million. This follows a robust financial performance across the Bank’s key performance indicators, including its gross assets (up 10% to £1.470 billion), home finance portfolio (up 15% to £1.224 billion) and total deposits (up 13% to £1.317 billion).

Financial results in 2023

	2023	2022	% Annual change
Gross assets	£1.470 billion	£1.3 billion	+10%
Home finance portfolio	£1.224 billion	£1.065 billion	+15%
Total deposits	£1.317 billion	£1.169 billion	+13%
Leverage ratio	7.3%	7.5%	-3%
Cost : income ratio	90.8%	101.2%	-10%
Average risk weight	42.3%	42.8%	-1%
CET1 ratio	17.1%	17.4%	-2%

2023 Key Highlights

Home Finance

• Despite macro-economic turbulence over the last year, the Bank’s home finance portfolio experienced a healthy growth, with total balances up by 15% year-on-year to £1.224 billion (2022: £1.065 billion).
• Gatehouse Bank’s green home finance offering was enhanced to also apply to UK expats and international residents, as well as to UK residents. These products offer a reduced rate for customers purchasing a home with an energy efficiency rating of A or B. The Bank also offsets the carbon emissions generated by the average UK property for as long as the customer remains with the Bank with a qualifying property.
• The Bank continued to strengthen relationships with the intermediary market, with more active brokers registered to introduce clients.
• The Direct-to-consumer finance advisory team accounted for 35% of total 2023 originations.
• A new live chat website facility was launched, allowing new home finance customers to communicate with the Bank’s online support agents in real time, rather than submitting an enquiry form on the website.
• In 2023, almost 3,500 Decisions in Principle were successfully completed through the Bank’s online Decision in Principle facility, which was introduced in Q4 of the previous year

Savings

• Total deposits grew by 13% to £1.317 billion (2022: £1.169 billion).
• Following Gatehouse Bank’s consumer research into UK adults’ saving habits*, the Bank launched the UK’s first Shariah-compliant Regular Saver account, aiming to drive financial inclusion amongst young people and those with smaller deposits. The account can be opened with a minimum of £1 and allows monthly deposits of up to £300, offering a competitive variable expected profit rate** which is paid at the end of the 12-month term.
• The Bank’s Woodland Saver fixed term deposit and cash ISA accounts remained popular. For every account opened or renewed, Gatehouse Bank plants a tree on behalf of the customer, surpassing 40,000 trees planted since the accounts were launched.
• Customer satisfaction remained high, with the Bank’s Savings Net Promoter Score standing at a strong +65 in December 2023.

Build to Rent

• The Gatehouse Build to Rent Group was established as a vertically integrated residential investment and management platform, comprising of Gatehouse Investment Management and Ascend Estates.
• Gatehouse Investment Management created four institutional single family rental platforms and Ascend now manages over 10,000 homes.
• Gatehouse Investment Management launched a strategic joint venture with The Carlyle Group, to acquire new build, single family homes for rent from leading housebuilders, Gleeson, Persimmons, Bovis and Bellway Homes.
• Overall performance of the Build to Rent portfolio remained favourable, with strong year-on-year rental growth and high occupancy.

ESG

• Gatehouse Bank continued to align to the UK’s net zero target and was certified as operationally carbon neutral for the third consecutive year.
• Colleagues across the Bank raised over £15,700 for its 2023 Charity of the Year, Rainbow Trust Children’s Charity. The funds raised will help Rainbow Trust support eight families caring for a seriously ill child for one year.
• The Bank enhanced its Volunteering Policy to offer colleagues two paid days per year to volunteer in their local communities. In 2023, colleagues across the Bank accrued over 630 volunteering hours.
• A three-year sponsorship agreement with community sports club, Hyderi Sports Association (HSA), was signed. The Bank’s support will help HSA provide sports kits for its members, host community sports days and facilitate attendance in UK and overseas sports tournaments.

Fahed Boodai, Chairman of Gatehouse Bank, commented: “I am incredibly proud of our business progress and sustained growth, particularly amidst the uncertain macro-economic backdrop and challenges faced by UK-centric home finance providers over the last year. Our annual results illustrate four years of consecutive profitability for the Bank, which is a significant milestone as the business continues to mature.”

Charles Haresnape, CEO of Gatehouse Bank, added: “Our customers remained at the heart of the Bank’s strategy as we enhanced our product offering for savers, homeowners and landlords and upheld our digital-first ethos. Our excellent level of service was reflected in our net promoter score of +53 at the end of the year, which is the highest in Gatehouse Bank’s history.

“As a founding signatory to the UN Principles for Responsible Banking, we continued to positively engage with the United Nations on progress against our targets, particularly around the environment and financial health and inclusion. We have outlined a clear action plan on how to continue meeting these targets, and we remain dedicated to operating according to the Shariah principles of fairness and transparency and doing right by the communities we serve.”

Gatehouse Bank’s full Annual Report for 2023 is linked here.