UK app-based bank Atom is on course to make its first full year operating profit thanks to a 200% rise in income coupled with strong cost controls.
After delivering its first monthly operating profit in Q1, the lender has recorded operating profits for the remaining three quarters of the year to March.
Underlying operating losses narrowed to £2 million - a £34 million improvement over the previous year.
Income grew by over 200% thanks to increases in the loan book across both business and residential lending, with Atom’s total loan book reaching £3.3 billion, up from £2.7 billion the previous year.
Meanwhile, costs were up by just six per cent, which Atom has attributed to a focus on automation and cost management.
Mark Mullen, CEO, Atom, says: “It has been a significant year of progress for Atom. We have continued to grow our franchise and we’re on the cusp of achieving sustainable full year profitability, proving that it is possible to do so while providing both customers and employees with a better deal.
In May, Sky News reported that Atom was considering a Spac merger on the New York Stock Exchange at a valuation of $700 million.
Last week, another digital challenger, Monzo, reported it has narrowed its full year losses to £119 million thanks to surging revenues.