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Recognise Bank’s Bridging Balances Double as Gross Lending Rises 51%

Recognise Bank completed £306.7 million in gross lending over the year to 31 March 2026, marking a 51.1% increase in its loan book to £461.9 million. Bridging finance was the main driver of this growth, with balances more than doubling from £124 million to £303.8 million and now making up two-thirds of the total loan book.

Professional buy to let (BTL) lending remained largely unchanged at £88.4 million, while commercial lending fell from £58.8 million to £49.5 million. By region, London continued to be the largest market for Recognise Bank, with lending rising from £88.3 million to £153.2 million. The South East and North West also saw increases, reaching £95 million and £77.5 million respectively.

The bank reported a small net impairment credit of £46,000 for the year, compared to a £2.3 million impairment loss in 2025. This was attributed to changes in the structure of the loan portfolio. Net loans and advances stood at £461.9 million after expected credit losses of £4.6 million.

Recognise Bank’s net interest income increased by 31.7% to £20.4 million, with the net interest margin improving from 5% to 5.3%. The bank attributed this to disciplined pricing and ongoing balance sheet optimisation.

Following a new strategy approved in May 2025, Recognise Bank reached in-month profitability in June, three months ahead of schedule. The bank also relocated its London head office, closed its Manchester office, opened a new operations centre in Milton Keynes, and reduced its average headcount from 70 to 68. Technology platform updates were also initiated.

The bank’s product focus during the year was on expanding its bridging finance offering. Recognise Bank plans to further scale bridging finance in the next financial year and is preparing to launch regulated bridging, subject to regulatory permissions. Plans are also in place to expand commercial mortgage and longer-term property lending.

Recognise Bank reported an £8.9 million profit after tax for the year, compared to a £5.3 million loss the previous year. This included £0.9 million in restructuring costs and a £7.1 million deferred tax asset. The bank held back £4.6 million of a potential £11.6 million deferred tax asset due to uncertainty in longer-term profit forecasts.