Starling Bank reports 50% revenue rise in third year of profitability
UK challenger Starling Bank has reported its third year of profitability in the year ending 31 March, with pre-tax profits jumping 54.7% to £301.1 million.
Starling Bank reports third year of profitability
At the same time, the bank claims to have recorded a 50.6% revenue increase to £682.2 million, alongside a 4% rise in total deposits to £11 billion.
First tipping into the green in October 2020, Starling attributes its latest financial performance to “strong growth in revenue, deposits, active customers and customer transactions”.
“The percentage of active accounts now stands at nearly 80%, while total transactions rose by 21% to £174.1 billion during the year,” comments Starling group chair, David Sproul.
Figures show that the challenger now serves a total of 4.2 million accounts, up from 3.6 million in FY23, which includes 2.9 million active core accounts, up from 2.4 million the previous year.
John Mountain, interim CEO of Starling Bank, describes the results as “a breakthrough year for Starling”, during which it “invested heavily” into Engine, the Banking-as-a-Service (BaaS) technology platform it launched in March 2022.
Mountain is expected to step aside this summer to make way for Ovo chief Raman Bhatia, who was named as a permanent replacement to former group CEO Anne Boden in March.
Bhatia will be expected to guide the challenger’s growth efforts by leveraging the continued proliferation of its banking services and BaaS platform across global markets.
The platform previously secured deals with AMP Bank in Australia and Salt Bank in Romania in November, further aligning its hopes of penetrating the APAC region specifically.
