Atom bank has confirmed that its £40m raise will be led by Toscafund Asset Management LLP and BBVA. As the bank heads towards profitability, the £40m raise includes an offer to participate for qualifying shareholders in new ‘A’ class shares in Atom priced at 60 pence.
Atom’s revenues are growing strongly and the bank is on course to achieve over 100bps of Net Interest Margin (NIM) by the end March 2021. Atom is forecast to have grown lending to SMEs on its balance sheet to over £700m by the end of March 2021, a tripling of business loans in the last 12 months. This growth has been achieved both within the Coronavirus Business Interruption Loan Scheme and also independent of government schemes.
Atom has also seen strong and profitable growth in its mortgage portfolio, taking over £400m of mortgage applications in the second half of financial year 2020/21. Since launch, Atom has now loaned £2.8bn to UK mortgage customers. The Durham-based lender also confirmed its place in the secondary markets for UK mortgages, issuing a £770m prime mortgage securitisation last year - its third in the series.
Atom’s award-winning savings products are now hosted and run by Atom on UK fintech Thought Machine’s cloud native ‘Vault’ platform – part of a transformation to real-time cloud native technology across all of Atom’s banking stack that has also been completed in the last year. Atom launched a new Instant Saver last September to very strong reviews, and has so far added £0.6bn of Instant Saver balances to its existing £1.7bn of fixed rate savings.
This step change in income and technology has been achieved whilst avoiding significant growth in operating costs and delivering great customer experience. Atom’s automated mortgage journey is rated 9.2/10 via Reevoo and over the last year the bank’s app has scored 4.7 on the iOS store and 4.5 on the Google Play store. Atom has a Trustpilot rating of 4.6/5 and its latest Net Promoter Score was +76.
Atom CEO Mark Mullen said: “On the back of our best year ever and with really strong momentum baked into the business, this raise will accelerate our progress even further during 2021, and prepare us for the next stage in our growth and development prior to IPO, which we anticipate taking place in the next two years or so.”