Atom Bank Announces Record-Breaking Financial Results
Atom bank, the UK’s first app-based bank, has announced its strongest ever financial results, driven by a significant increase in lending while keeping costs exceptionally low. Operating profit grew to £27m, a 600% increase on last year, with costs up just 4%, demonstrating the success of its efficient, sustainable, and scalable business model.
Atom bank’s digital lending model has driven significant growth
Atom delivered its first year of operating profit in FY23 and has continued to build on this success. Alongside significant growth in operating profit, the bank has now delivered its first full year of profit both before and after tax. Atom raised £100m from existing investors in November last year, using the additional capital to accelerate balance sheet growth and further scale the business.
“This has been our best year yet at Atom bank. We have achieved profitability across all measures, grown our loan book significantly, maintained robust credit quality, avoided fraud losses altogether, kept our costs tightly controlled and enhanced our already industry-leading customer experience metrics.” - Mark Mullen, CEO of Atom bank
Strong Loan Book and Revenue Growth
Strong loan book and revenue growth saw a 31% increase in Atom’s net interest income to £100m, while net interest margin remained strong at 2.8%. The size of Atom’s loan book increased significantly by 39% to £4.1bn, with residential mortgage balances growing to £3.2bn, an increase of 55%. The digital lender delivered residential mortgage completions of almost £1.6bn, a 20% increase in a market that contracted by 25%. Atom maintains close control over credit quality, ending the year with just 0.3% of residential loans in arrears or subject to forbearance measures.
Mortgage lending has driven significant growth for Atom bank
Commercial Mortgage Growth
Atom has also seen significant growth in commercial mortgages, ending the year with balances of more than £600m, an increase of 19%. This includes completions of over £200m and a retention rate of maturing loans of 43%. During the year, Atom further automated commercial mortgage loan origination, reducing the time from loan application to securing an Agreement in Principle by 94%, down to just one working day by the end of March 23.
Commercial mortgage lending has seen significant growth
Commitment to Sustainability
The bank remains committed to making a positive impact on the environment and its local community. It has a long-term target of being carbon positive by 2035 and achieved a 12% reduction in operational carbon emissions per full-time employee in FY24. Atom has continued its social investment strategy in the North East, funding two new Women in Technology scholarships at Durham University and launching the Atom Futures Fund to support year 13 students from low-income backgrounds in County Durham applying to Russell Group Universities.
Atom bank is committed to sustainability and community investment
