North East challenger bank Atom has hailed turning its first ever operating profit having attracted thousands of new customers.
The Durham-based operator, which was the 海角视频's first app-based bank, has reported operating profit of £4m in the year to the end of March, up from a £2m loss in 2022. After nine years of losses, chief executive Mark Mullen, a co-founder of the bank, said it now had the momentum to "eclipse these numbers by a very considerable multiple in the months ahead".
Figures in Atom's report show a huge influx of customers to 224,000, an 82% increase on last year's numbers as savings deposits more than doubled to £6.6bn. That came from the bank's push to out-compete established lenders by offering more attractive savings rates and making account openings and mortgage decisions slicker than its rivals.
Read more: North East tourism tops £5.4bn as region's fourth largest sector, latest figures show
Interest income over the year grew to £209.1m, up from £76.8m as Atom said it had passed on the majority of base rate rises to its savings customers while choosing not to pass on June's increase to its standard variable rate (SVR) mortgage borrowers. Meanwhile, pre-tax losses narrowed from £14.46m to £10.09m.
Mr Mullen said: “It has been an important year for Atom. 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. And we’ve done it while maintaining our 5-star Trustpilot and App Store ratings.
"Over the course of the year Atom has shown that banks can provide exceptional customer service and offer customers better value for money. We never allow ourselves to forget that ultimately, the customer pays for everything.
"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."
Most Read
Speculation about a long expected flotation for Atom was fuelled by outgoing chair Bridget Rosewell, who said in the 2023 report that a new holding company - Atom Holdco Limited - had been established above the bank in preparation for a future IPO.
Elsewhere in the report, Mr Mullen said: "I am often asked by journalists about our plans to IPO and more than once found myself hostage to my own words. In such turbulent times I think it’s best to tell you that first and foremost we are working to ensure that we have a business that is a credible candidate for IPO. One that can offer shareholders long term valueand sustainability and not just survive the transition from private topublic ownership, but thrive thereafter."