Starling Bank posts first annual profits as mortgage business thrives

By Stephen Emerson

22 July 2022

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Starling Bank has posted its first profit

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.

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.”

By Stephen Emerson

Stephen Emerson is the Managing Editor of The Business Magazine and is responsible for the publication's print publications and online properties including the newly launched Biz News websites in Hampshire and Dorset.

Stephen has been a journalist for 20 years and has worked at local, regional and national publications and led a team which made The Scotsman website one of the fastest growing news sites in the UK with over eight million monthly users.

He has a keen interest in technology, property and corporate finance and telling the stories of the people behind the successful firms in these sectors.