Zempler Bank grows profit on the back of high interest rates
Zempler Bank has recorded its third consecutive year of profitability after a cheering jump in customer deposits and a strong performance in interest income.
The UK fintech – formerly known as Cashplus – recorded a 58 per cent leap in pre-tax profit to £5.2m for the year ending March 31 2025. It comes as deposits rose over 15 per cent to £625m for the period.
Total income rose 7.3 per cent to £68.2m with interest income up to near £37m from £34m.
Fintechs across the board benefited from sky-high interest rates in the last year – hitting a post financial crisis high of 5.25 per cent – but questions have been raised over long-term sustainability as the Bank of England whittles rates down.
Zempler’s growth came despite some business lines remaining squeezed. Fee and commission revenue tumbled 7.38 per cent to £31.3m, while loans sank nearly ten per cent to £25.5m.
Zempler pledges support to small firms amid tax squeeze
‘Microbusiness’ customers – a crucial area of focus for the firm – remained broadly flat at 170,280 – just a 0.57 per cent rise.
Chief executive Rich Wagner said the year ahead was “set to hold challenges for many of our customers and we know that confidence in the UK economy and the spending power of consumers is under pressure”.
Wagner said small firms “are facing an increasing tax burden” and Zempler would do “everything we can to support those businesses with products that make their life simpler”.
Data from Simply Business last month revealed one in five small- and medium-sized enterprises expect to be forced out of business if conditions don’t improve
The firm’s cost-to-income ratio edged down 3.27 per cent but remained elevated at 90.72 per cent.
Zempler laid out plans to rebrand to Cashplus last year as it prepared to launch a fleet of new digital products on the back of its authorisation as a bank in 2021.
The challenger said it invested in a “major upgrade” in its capabilities in tackling fraud and economic crime over the last year, as well as launching its new “Pro” business current account.
The total number of employees swelled by over a third to 338.
Zempler launnched in 2005, founded by Wagner as Cashplus. The firm, which has offices in London and Liverpool, has since evolved from a prepaid card pioneer into a fully licensed digital bank, focussing on microbusinesses.
The fintech faced scrutiny at the end of 2024 after Morning Wire revealed the bank told staff it would axe around five per cent of its workforce just after publicly announcing a jump in profit.
Insiders told Morning Wire it was the second round of cost-cutting measures after the bank let go of a number of international contractors in the summer, who had been hired to help build its ‘Business Credit Builder’ and ‘Business Credit Card’ products. Contracts were said to have ended after projects were completed.
A Zempler spokesperson said at the time: “We would not comment on specifics, but we are operating in a fast-moving and evolving market, and, like many firms, we regularly review our organisation to ensure we have the best structure in place to best support our customers and to enable the growth and future success of the business.”