ZOPA is back in the black in its annual results for the first time in five years, after what it called “a year of strong and sustainable growth”.
The peer-to-peer consumer lender reported pre-tax profit of £111,492 in 2017, up from a loss of £5.87m in 2016.
Revenues rose by 40 per cent to £46.5m over the same period.
“2017 was a landmark for us,” said chief executive Jaidev Janardana. “We’re proud to see the company’s efforts reflected in our record lending figures, profitability and strong customer growth.
“It’s a big step towards Zopa’s vision to be the best place for customers’ money. We’ve invested significantly in technology, in our proprietary back office infrastructure, and in our people, all of which have helped Zopa to continue to scale and grow sustainably.”
2018 is set to be an even busier year for the firm, as it is planning to launch a bank.
Many P2P lenders have been loss-making for years, which they argue is due to investment into the business. However, a number of firms are now moving into profit.
Funding Circle’s UK business became cashflow positive in the fourth quarter of 2016 and RateSetter expects to return to profit this year. Assetz Capital and Lendy have recently reported profits as well.