Starling Bank has reported its first full year of profitability, with the digital bank maintaining momentum into its current financial year.
In the year to 31 March 2022, the business made a pre-tax profit of £32.1m, swinging from a pre-tax loss of £31.5m in the prior period.
Revenue for the same spell to 31 March 2022 was £188m.
Starling’s previous financial year, to 31 March 2021, covered a 16-month period.
In the three months following its latest accounts, Starling has continued to grow at pace and in June 2022 reports an annualised revenue run rate of £331.2m driven by year on year lending growth of 72 per cent to £4bn.
Starling said it continues to build on the mortgage capability it gained through the acquisition of Fleet Mortgages in July 2021, with more than £2bn of mortgages now on the balance sheet. The growth in lending has been funded by Starling’s growing deposit base, which increased by a further £600m in the past three months.
Anne Boden, founder and chief executive of Starling Bank, was bullish about the performance.
“With our first full year of profitability, we’ve placed ourselves firmly in a category of one,” said Boden.
“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.”