Atom Bank, the UK’s first app based bank, has again received support from its long-term shareholders. BBVA, Toscafund and Infinity Investment Partners are participating in a new capital round of £100 million, about €115 million¹, to continue its growth in mortgages and loans to SMEs. Following this round, BBVA remains Atom’s leading shareholder.
Atom’s latest results confirmed the potential of its cost efficient and scalable model. The FY23 results (from April 2022 through March 2023) posted revenue growth of 62%, with customer numbers doubling to 224,000, and savings deposits rising to £6.6bn. During this period, Atom reported its first ever operating profit of £4 million and NII of £76 million.
Atom has already eclipsed that figure for operating profit this financial year, with current quarterly run-rate generating +£100 million of annualized net interest income and +£25 million of operating profit. The new capital resources will enable Atom to accelerate balance sheet growth, and create an even more compelling proposition for savers, homeowners, first time buyers, and SMEs. Atom has already loaned more than £4 billion to UK homeowners, and over £1 billion to small businesses since launch, with the funds enabling the digital bank to further ramp up lending activity.
The current capital raise operation with its leading shareholders forms part of Atom’s long-term strategy to have the needed capital to proceed with its growth plans. “I’m delighted with this vote of confidence in Atom from our investors, and to have their ongoing backing is a fantastic boost,” Atom CEO Mark Mullen said. He also added that the bank has an excellent track record with consistent and responsible growth and rigorous cost-control initiatives.
“This money will be put to work to drive growth and to fuel the development of our franchise. UK customers need better outcomes and better banks. Our vision remains as valid today as it was when we founded the company – change banking for good, for the better, for everyone,” he concluded.