ClearBank slashed its 2022 losses by 65% as income reached a record £58m

ClearBank saw its net income more than double last year to a record £58.3m, helping the embedded banking provider to further narrow its losses.

For its 2022 financial year, ClearBank’s operating loss was reduced to just £10.7m, a 65 per cent improvement on the £31m loss it reported the previous year.

CEO Charles McManus pointed to the increase in the fintech’s customer base as the underlying reason for its improving financials, with a 22 per cent increase in total customers driving up income from transaction fees (up 43 per cent) and fixed platform fees (up 23 per cent).

New customers in 2022 included names like Kroo, PEXA, Raisin and WealthKernel, with a total of 39 new clients added.

“2022 was a landmark year for ClearBank – we’ve grown exponentially, onboarded fantastic new clients and been one of the few new banks globally to reach profitability,” he said.

“On top of this, we’ve secured the investment to fuel the next phase of ClearBank’s journey - international expansion.”

ClearBank reached monthly profitability in October 2022, and says it expects UK profitability to continue through 2023.

The company is also planning expansion into Europe in the second half of 2023, funded by the £175m it raised last year, but which will likely continue to put pressure on overall profitability for the time being.

“With economic uncertainty continuing into 2023, the security and resilience offered by ClearBank is crucial to unlocking the potential of our clients and their customers, helping them to continue to innovate, differentiate and grow,” concluded McManus.