Gatehouse Bank achieves fifth consecutive year of profitability
Gatehouse Bank, a Shariah-compliant ethical bank, has published its annual results for the year ending 31 December 2024.
The Bank reported a post-tax profit for 2024 amounting to £3.8m (up 20% from £3.2m in 2023), marking its fifth year of profitability. In line with its business strategy for the year, the Bank managed growth across its core markets, with total home finance originations amounting to £148m.
2024 Key Highlights
Home Finance
- The Bank saw a 4.6% decrease in its home finance portfolio in line with business strategy, from £1.224bn in 2023 to £1.168bn in 2024. This reflects the sale of £109m from its existing portfolio as part of a new forward flow arrangement.
- The Bank reintroduced its range of Home Purchase Plans* offering finance up to 95% of the property value, to support those taking their first step on the property ladder.
- For Buy-to-Let customers, the Bank reintroduced “top slicing”, allowing landlords to use their personal income to top up the shortfall if their tenant’s rent does not achieve the required threshold.
- Gatehouse Bank continued to support customers financing a more energy efficient property through its green home finance products. These offer a reduced rental rate** for customers acquiring or refinancing a property with an energy efficiency rating of A or B. In addition, the Bank also offsets the carbon emissions generated by the average UK property for the product’s initial fixed term.
- The Bank advanced its digitalisation strategy and invested in technology, extending its online Decision in Principle (DIP) facility to also include overseas customers. In 2024, 8,700 Decisions in Principle were successfully competed online, more than double the 3,974 DIPs completed online the year before.
Savings
- In line with business strategy and the Bank’s targets for the year, total retail deposits reduced by 2.1% in 2024 to £1.289bn.
- Gatehouse Bank’s range of fixed-term deposit and cash ISA Woodland Saver accounts remained popular with customers. For every account opened or renewed, Gatehouse partners with Forest Carbon, a leader in developing woodland creation, to plant a tree on behalf of the customer across nine woodland projects certified by the government’s Woodland Carbon Code.
- In December 2024, the Bank surpassed the milestone of 50,000 trees planted.
Build to Rent
- The Bank’s Build to Rent activity is consolidated under one roof by subsidiary, Gatehouse Build to Rent Group, trading as Gatehouse Living Group.
- Performance of the Build to Rent portfolios remained favourable in 2024, with strong year-on-year rental growth and high occupancy.
- In 2024, the Group sold an 800-home single-family housing fund on behalf of investors and launched a new strategic venture with a UK-based private equity business, acquiring over 1,000 homes from leading housebuilders.
ESG
- Gatehouse Bank refined its ESG strategy across four pillars: biodiversity and deforestation, financial education and inclusion, climate change and community health and wellbeing.
- 2024 marked the five-year anniversary of the UN Principles for Responsible Banking, of which Gatehouse Bank is a founding signatory and the first Shariah-compliant bank in the UK to sign up.
- Gatehouse Bank has now been certified as operationally carbon neutral for four consecutive years.
- Colleagues across the Bank raised over £21,000 for its 2024 charity partner, the Bone Cancer Research Trust. The funds raised will help the charity continue its vital work of supporting those affected by primary bone cancer.
- Having continued to provide opportunities for colleagues to take two paid days of volunteering leave per year, the Bank saw its highest uptake on this policy, with 132 colleagues supporting over 40 organisations.
- Overall, 78% of Gatehouse Bank colleagues took part in fundraising or volunteering in 2024, marking a 38% increase compared to 2023.
- During the year, the Bank launched a Community Sports Fund and has partnered with five local sports teams. Through this initiative, the teams received new sports kits.
Charles Haresnape, CEO of Gatehouse Bank, commented: “Thanks to the hard work of colleagues across Gatehouse Bank, we continue to challenge in our chosen specialisms while ensuring we put the needs of customers at the heart of everything we do. This was reflected in reaching a 12-month rolling net promoter score of 71+, a new milestone within the Bank’s history.
“At Gatehouse Bank, we have appetite for further growth in 2025 and see demand from our specialist markets to achieve this. We aim to uphold an excellent customer experience for new and existing customers, while continuing to help more savers, homeowners and landlords achieve their financial goals.”
Danesh Mahadeva, chief financial officer of Gatehouse Bank, added: “I am incredibly proud of Gatehouse Bank’s progress in 2024, achieving the fifth consecutive year of profitability.
“I am confident that the Bank is well placed to grow its origination capability further both on and off balance sheet.”
To read the full 2024 Annual Report, please click here.
*A Home Purchase Plan is a Shariah-compliant alternative to a mortgage.
**As a Shariah-compliant bank, Gatehouse charges rental rates rather than interest rates, which reflect the share the customer owns of the property.