Challenger bank Oaknorth hands shareholders maiden dividend

One of Britain’s leading challenger banks has agreed to hand out its inaugural dividend after reporting a bumper profit in its last financial year.

Sky News understands that Oaknorth, which is chaired by the former chairman of the City watchdog, Lord Turner, notified investors last week that it would distribute roughly $40m (£31.2m) as a special dividend.

The payout will unlock a capital return for shareholders in Oaknorth for the first time.

Money latest: Heinz could bring back snack

Launched in 2015, the bank is among a group of lenders – along with Monzo and Starling Bank – founded after the 2008 financial crisis.

Sources said the special dividend was being paid to institutional investors and employees who had purchased shares in the company.

Oaknorth’s backers include the giant Japanese investor SoftBank and GIC, the Singaporean state fund.

Since its launch, it has lent £11bn and boasts an industry-leading loan default ratio.

The bank, run by co-founder and CEO Rishi Khosla, is awaiting approval from regulators for the opening of a representative office in the US.

It is also working on potential acquisition targets in the country.

Oaknorth declined to comment on the dividend payment.