Atom Bank achieves first annual operating profit

Atom Bank profit Atom CEO, Mark Mullen

Atom Bank has achieved its first annual operating profit of £4m, swinging from a £2m financial loss for the 2022 financial year.

The Durham-based fintech’s revenue surged by 62% with its customer base expanding from 123,000 to 224,000 over the last financial year.

Mark Mullen, CEO of Atom, said: “It has been an important year for Atom. We’ve grown strongly, kept our costs tight and delivered our first annual operating profit.”

The bank’s newfound profitability comes as it is warming up for a London market listing that could occur this year.

Despite the profit, operating costs for the last accounting period still saw a rise by £8m due to investments by Atom Bank in “people and capabilities”.

“We believe that the lowest cost wins. Lowest cost and highest quality wins every time. If that isn’t the new banking paradigm, then it ought to be,” added Mullen.

Quarterly run rate is at more than £100m+ annualised Net Interest Income with a +£25m operating profit according to Atom Bank.

Atom Bank said its balance sheet now accounts for savings deposits equalling £6.6bn, more than two times the amount of last year.

The fintech, which offers both personal and business banking services, raised £105m in 2022, through a £75m and £30m round.