UK digital challenger Atom Bank has achieved its first annual operating profit of £4 million in FY23, attributing its success to a strong customer growth and efficient business model.
Facts
- Atom Bank has recorded its first annual operating profit of £4 million in FY23, after experiencing a £2 million loss in FY22.
- Despite a rise of £8 million in total operating costs to £59 million, the bank’s revenue growth and net interest income (NII) increased by 62% to £76 million, offsetting the costs.
- Atom Bank has achieved three consecutive quarters of double-digit return on tangible equity (ROTE) until Q1 FY24.
- The bank’s customer net interest margin (NIM) remains strong at 2.84%, and its customer count has increased from 123,000 in FY22 to 224,000 at present.
- Atom Bank attributes its success to improving the efficiency of its business model and exposing the operational costs and inefficiency of legacy banks.
- Mark Mullen, Atom’s CEO, emphasized the importance of keeping costs low and delivering the first annual operating profit, stating that the customer pays for everything.
- Schroders Capital Global Innovation Trust, a major shareholder in Atom Bank, marked its holding down by 31% but expressed encouragement with Atom Bank’s operational progress and profitability.
