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Starling expects profits to quadruple as CEO says crypto lacks ‘moral purpose’

Starling profits

Starling Bank is expecting to increase its pre-tax profits by more than four times in its upcoming annual financial results.

The digital bank said it “generated annualised pre-tax profits of more than £250m on the back of almost £600m of annualised revenue for the month of December 2022”.

In July last year, Starling announced its first full year of profits – still a rare feat in the world of challenger banks.

Anne Boden, CEO of Starling, commented in a blog post: “Becoming a leading player in the banking market takes some getting used to and this change of role presents its own challenges.

“Starling was always the underdog; the diligent, hardworking, socially aware, tech-savvy fintech. Never as cool as those businesses run by those 30-year-old tech bros.”

Boden said that the reduced valuations in the startup world and those struggling to raise funding was the market “correcting”. She added that some “inflated” valuations” that lead to “predictable consequences”.

“Starling, though, is different. We’re profitable, very well capitalised and have no need to raise money. It’s no accident that we have never sought a silly valuation, even when the prospect of one was dangled before us.”

In the blog post, the Starling boss also mentioned cryptocurrencies and the historically strict stance the company has had on them.

“One day crypto will be safe and highly regulated on an international basis with protection for consumers and businesses. And one day I can see the potential,” Boden said.

“But this is not where we are today. Right now, crypto is lacking sufficient practical and moral purpose.”

In November 2022, Starling announced it will no longer support the transactions of cryptoassets for its customers. The ban was implemented after the collapse of the major crypto exchange company FTX.