UK-based digital challenger bank, Starling Bank reported its results for the financial year ended 31 March 2022 today. With a spike of almost 93%, Starling Bank’s revenue reached the figure of £188 million.
Additionally, the digital bank posted its first profitable full year as the company’s pre-tax profits touched £32.1 million, compared to a pre-tax loss of £31.5 million for the year ended 31 March 2021. Solid growth was observed in lending and deposit base as the numbers climbed by 45% and 55%, respectively.
In July last year, Starling Bank announced the acquisition of Fleet Mortgages. Since then, the company witnessed a substantial jump in its mortgage capabilities.
Commenting on the latest financial results and the company’s profitability, Anne Boden, the Founder and Chief Executive of Starling Bank, said: “With our first full year of profitability, we’ve placed ourselves firmly in a category of one. As an innovative digital bank with a sustainable business model and a strong balance sheet, we are generating our own capital, and we stand apart from both the old banks and other challengers.”
In April 2022, Starling Bank completed an internal fundraise of £130.5 million. A broad list of investors participated in the round.
Digital Banks
The popularity of neobanks has increased significantly across the UK and Europe in the past few years. However, most of the players in the digital banking ecosystem are struggling to post profits. Despite a challenging environment, Starling Bank has been able to post consistent profits in the past few quarters.
“In the three months following its latest accounts, Starling has continued to grow at pace and in June 2022 reports an annualized revenue run rate of £331.2 million driven by year-on-year lending growth of 72% to £4 billion. The growth in lending has been funded by Starling’s growing deposit base, which increased by a further £600 million in just three months,” the company added.
