Turning Point! UK Neobank Starling Achieves Profitability!

Founder and CEO Anne Boden had committed months ago, announcing that Starling Bank would become profitable before the end of 2022. As a matter of fact, the digital bank 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, up nearly 93% from 2021.

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

Starling said it continues to build on the mortgage business it gained through the acquisition of Fleet Mortgages in July 2021, with more than £2 billion of mortgages now on the balance sheet as of 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.