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Atom bank turns in first annual profit

Atom bank turns in first annual profit

UK app-only bank Atom has hit a significant milestone in reaching its first ever annual operating profit of £4 million.

Set against a £2 million loss in 2022, Atom has doubled customer numbers to 224,000 over the year, luring new customers with a range of attractive interest-bearing savings accounts. The bank has also invested in its mortgage application process, reducing the time taken to approve a home loan to less than five days during the final quarter, as opposed to an industry average of 25 days.

Over the year, total savings deposit balances doubled to £6.6 billion, while loans under management only slightly increased to £3.4 billion from £3.3 billion year-on-year.

Customer net interest margin remained strong at 2.84% and net interest income increased by 62% to £76m off the back of profitable balance sheet growth. Total operating costs rose to £59m from £51m in the comparable period, but this was hugely outstripped by revenue growth of 62%.

Atom CEO Mark Mullen, says: "We’ve grown strongly, kept our costs tight and delivered our first annual operating profit. We’ve also passed on more than 70% of the Bank of England’s base rate increases to our savers but only 70% of them to our Standard Variable Rate mortgage borrowers.

“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.”

The profitability may add to anticipation over the firm’s float on the public markets after a series of delays due to turbulent economic circumstances.

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