Starling Bank has achieved its first full year of profitability.
The digital bank swung to a pre-tax profit of £32.1 million for the financial year ending 31 March 2022 from a pre-tax loss of £31.5 million for the period to 31 March 2021. Revenue for the same period to 31 March 2022 was £188 million.
Starling’s previous financial year, to 31 March 2021, covered a 16-month period to reflect a change in the timing of its financial reporting.
In the three months following its latest accounts, Starling has continued to grow at pace and in June 2022 achieved an annualised revenue run rate of £331.2 million driven by year-on-year lending growth of 72% to £4 billion.
The bank has also continued to build on the mortgage capability it gained through the acquisition of Fleet Mortgages in July 2021, with more than £2 billion of mortgages now on the balance sheet as at June 2022.
This growth in lending has been funded by Starling’s growing deposit base, which increased by a further £600 million in three months.
Commenting on the results, Anne Boden, 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.”