FinTech: UK Digital Bank Starling Halves Losses, Boosts Turnover 600%
Starling today reported numbers for the 16 months ended March 31, 2021.
Revenue at British neobank Starling for the 16 months ended March 31, 2021, rose by nearly 600% to £97.6 million from £14 million for the previous period ending 30 November 2019, while loss after tax more than halved to £23.3 million from £52.1 million. (Yahoo Finance)
Anne Boden, CEO of Starling, said: “Starling is pulling away from the rest of the Fintech pack. Now that we are profitable and growing responsibly, we’re gaining momentum, generating our own capital, and executing on our strategy to expand lending.”
In a trading update for the quarter ended June 30, 2021, the bank said it earned revenues at an annualized run rate of more than £170 million.
|Detail||31-3-2021 (16M)||30-11-2019 (12M)||Growth||30-6-2021 (3M)|
|Revenue||£97.6 million||£14 million||600%||£42.8 million|
|Deposit base||£5.8 billion||£1 billion||500%||£6.8 billion|
|Customer accounts||2.1 million||0.926 million||127%||2.3 million|
|Loss after tax||£23.3 million||£52.1 million.||-55%|
Starling said it was adding new accounts at the rate of one every 34 seconds. It also said it broke even in October 2020 and has been profitable every month since.
In a letter to investors, Boden said the pandemic proved to be Starling’s biggest test and biggest success.
“We rolled out more than £2 billion of lending and introduced innovative products and features to support our customers’ changing needs,” she wrote. “And we proved our business case, combining a great experience with low fixed costs to generate profits.”
“This has allowed us to pull away from the Fintech pack.”
Regarding Starling’s plans for an IPO and listing venue, Boden said the bank had an IPO as a goal, but it would seek a listing only when it was “right for our business” and not just because it was fashionable to fit in with the pack.
According to Reuters, which quoted a source familiar with the company’s plans, London was the most likely choice.
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