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Starling Bank posts first annual profits as mortgage business thrives

By Stephen Emerson
22 July 2022

Starling Bank has this week reported its first full year of profitability.

The bank, which has a base in Southampton, swung to a pre-tax profit of £32.1 million for the financial year ending 31 March 2022 from a pre-tax loss of £31.5 million for the period to 31 March 2021. Revenue for the same period to 31 March 2022 was £188 million.

Starling’s previous financial year, to 31 March 2021, covered a 16 month period to reflect a change in the timing of the bank’s financial reporting.

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In the three months following its latest accounts, Starling has continued to grow at pace and in June 2022 reports an annualised revenue of £331.2 million driven by year on year lending growth of 72% to £4 billion.

Starling continues to build on the mortgage capability it gained through the acquisition of Fleet Mortgages in July 2021, with more than £2 billion of mortgages now on the balance sheet as at June 2022. This growth in lending has been funded by Starling’s growing deposit base, which increased by a further £600 million in just three months.

Anne Boden, Founder and Chief Executive of Starling Bank, said: “With our first full year of profitability, we’ve placed ourselves firmly in a category of one. As an innovative digital bank with a sustainable business model and a strong balance sheet we are generating our own capital and we stand apart from both the old banks and other challengers.”

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