Atom Bank has achieved its first year of post-tax profit, posting net income of £12.3m in its latest annual report.
The challenger bank, founded in 2013, reported its strongest-ever financial results on Tuesday, with operating profit growing almost 600% to £27m.
The Durham-based digital bank credited the strong results to a 39% increase in lending and its “low-cost business model”, with staff and administrative costs remaining fairly steady as income increased.
Atom Bank reported its first year of operating profit in 2023, reaching £4.3m, however, the firm lost £5.6m after taxes.
“We begin the new year with tailwinds in the form of strong asset pipelines, excellent technology, a highly engaged team, supportive investors and an enviable reputation with customers,” said CEO Mark Mullen.
“UK banking remains dominated by players with low growth, high costs and indifferent customer service.
“We remain entirely focused on serving the needs of borrowers and savers, without the soaring costs and operational complexity of transactional banking products like current accounts. Ultimately, this is the only way to disrupt the status quo.”
In November last year, Atom secured £100m in funding from existing investors BBVA, Toscafund and Infinity Investment Partners.
The company said that additional capital was “used to accelerate balance sheet growth and to further scale the business”.