Letchworth bank makes first-time profit after investing during COVID-19

Redwood Bank Gary Wilkinson

Redwood Bank CEO Gary Wilkinson has said 'daring to be different' has helped the business make its first profit - Credit: Redwood Bank

A Letchworth bank made its first profit after it continued to give out loans during the pandemic.

Many businesses closed during the lockdowns, unable to make a profit while many lenders were not giving money to support businesses.

Redwood Bank has said it had continued to support British businesses during this time.

Its business model saw a pre-tax operating profit of £2.2 million in 2021 after electing to support British businesses when COVID-19 hit.

Gary Wilkinson, CEO and co-founder of Redwood Bank, said: “We reached this milestone because we continued to offer vital lending support to British businesses during the various COVID-19 lockdowns, when many other mainstream lenders retrenched.

"We are proud to have played our part in bolstering the resilience of British business.

“Redwood Bank plugs a gap in the market where mainstream banks prefer not to lend. We dare to be different, as we truly understand the challenges of British businesses, responding to their concerns and supporting their need for flexibility and resilience in the face of a crisis.”

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The bank, based in Broadway's Nexus building, originally started with a team of 12, and grown to over 125 employees since its launch.

“Where we are from is important to us, we are a part of the community," Gary said. 

"The fact that we made our first profit, in 2021, is testament to the robustness of our business model.”

Redwood Bank had seen loses of £1.7 million in 2020, the year prior to their profit.

The bank has recently made some changes to its loans, increasing the maximum Loan to Value on mortgages for commercial and residential loans.

Gary added: “We are an established specialist bank focused on simple commercial property loans and business savings accounts, offering secured mortgages to professional landlords, and business owner occupiers.”

The bank has assisted local businesses and taken part in a special ceremonial planting at Hertfordshire County Showground, where they donated 600 trees as part of the Queen’s Green Canopy.

This was attended by Lady Salisbury and the Lord Lieutenant of Hertfordshire Robert Voss CBE.