Oaknorth, one of Britain’s top challenger banks, has announced its first-ever dividend payout after reporting a significant profit in its previous financial year. According to sources, the bank’s shareholders were notified last week that a special dividend of approximately $40 million (£31.2 million) will be distributed.
The bank, chaired by former City watchdog chairman Lord Turner, has become a major player in the UK banking sector since its launch in 2015. Along with Monzo and Starling Bank, it was established in the aftermath of the 2008 financial crisis.
The special dividend is set to unlock a capital return for Oaknorth’s shareholders for the first time. Sources have revealed that institutional investors and employees who hold shares in the company will receive the payment.
Some of Oaknorth’s key investors include SoftBank, a Japanese conglomerate, and GIC, a state fund in Singapore. Since its inception, the bank has lent a total of £11 billion and boasts a strong loan default ratio, making it a leader in the industry.
CEO and co-founder Rishi Khosla is at the helm of the bank, which is currently awaiting regulatory approval for the opening of a representative office in the United States. It is also actively seeking potential acquisition targets in the country.
In other news, Sky News has reported that Heinz may bring back a popular snack, and there has been a surprise drop in the unemployment rate. However, the decline in Heathrow airport passengers has been attributed to the high cost of permits.
When approached for comment on the dividend payment, Oaknorth declined to provide a statement.
