London-based fintech firm, Clearbank, has announced its full-year results at the group level for the first time, following its expansion across Europe.
The company, which facilitates real-time clearing and embedded banking, reported a 63% increase in its fee-based income to £53.3m, as reported by .
Total deposits managed by the fintech reached £10.8bn, marking a 77% increase from 2023.
However, despite these positive figures, Clearbank recorded a pre-tax loss of £4.4m on an adjusted basis at the group level.
This loss was attributed to costs associated with its European expansion and the implementation of its new group structure. Nevertheless, the º£½ÇÊÓƵ arm of the business maintained profitability for the second consecutive year, posting a pre-tax profit of £9.9m.
Speaking to City AM, Clearbank's CEO Mark Fairless expressed satisfaction with the company's performance in 2024. He explained that the growth in fee income outpacing interest income was an "intentional" strategy, given the fluctuating macroeconomic climate and declining interest rates.
With Clearbank now operating in 11 European markets and having received its European banking license in July, Fairless stated that growing the European bank is currently the main focus.
He added: "Once we're more progressed with that, we're turning our attention to the US, which would be the next leg of the strategy."
'All options are on the table' for IPO
While the fintech is experiencing rapid growth, Fairless stated: "We're not focused on necessarily a unicorn crown."
He emphasised that building a sustainable business and supportive infrastructure remains their top priority. When questioned about a potential IPO for Clearbank, Fairless responded: "All options are on the table."
However, he couldn't commit to a specific listing, stating they would "take the call closer to the time".
"So obviously, the vast majority of our presence is in the º£½ÇÊÓƵ at the moment, that will balance out to Europe and then we'll enter the US market."
"And then I think we'd look at what option would fit us best."
Fairless also praised the thriving fintech climate in the Square Mile.
"There's clearly a competitive market in the º£½ÇÊÓƵ for that and we I think its recognised as a differentiator in the º£½ÇÊÓƵ."
He continued: "What's important is that we are supported in that kind of growth and in that sector and I think there's lots of conversations going on on that front."
He concluded by saying: "What's great about Clearbank is that we sit at the centre of that – a large number of the leading fintechs are our customers, and we're the banking platform that supports them."
