Atom Bank posts £ 36million loss as it targets 2022 breakeven point
Fintech lender Atom Bank has reduced its annual operating loss to £ 36million this year as it targets profitability ahead of a first public offering of its shares.
Losses at the savings, business and mortgage lender, which was previously backed by former star fund manager Neil Woodford, declined in the year through the end of March 2021, from £ 46million sterling the previous year.
The Durham-based startup said in its annual report that it expects to reach sustainable breakeven next year, after recording a single monthly operating profit and a net interest margin of 130 basis points. in June. He is targeting a listing in the 2022/23 financial year, most likely in London.
Digital banks such as Atom, Monzo, Starling Bank and Revolut are races to achieve long-term profitability as they mature, with plans to publicly launch their actions approaching.
Atom CEO Mark Mullen said Financial news earlier this year that achieving profitability is a matter of timing, but that it would be unwise for the bank to go public without its books in the dark.
“Atom has grown, in recent years we have made significant investments in the business and now we are seeing the results,” Mullen added in an Aug. 25 statement alongside the report.
“We are confident that we will generate sustainable profitability in the weeks and months to come as we continue on our way to the IPO.”
The bank, which benefited from loans under government-backed coronavirus business support programs last year, said it was on track to provide £ 1bn of total loans to small businesses by next month.
Business loans at Atom have jumped from £ 240million in 2020 to £ 662million in March this year due to the schemes, which have been a boon to struggling investment banks during the pandemic.
The lender reduced its losses even as the valuation of its overall business declined. After the year-end, Atom raised a £ 40million round in April with shares priced around 40% below the valuation of £ 530million received in 2019.
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