By Oliver Smith on Monday 9 August 2021
The bank expects to be “generating month-on-month operating profit later this year”.
During the last quarter to June, Atom Bank said it turned its first monthly operating profit in the Durham-based lender’s eight-year history, and will be regularly profitable on that basis soon.
The milestone came after Atom Bank surpassed £3bn in mortgage lending at the end of June, and grew deposits by 16 per cent to £2.5bn.
Atom also reached £759m in business lending via CBILS, and said its net interest margin on lending is now at 1.3 per cent, up from 1.02 per cent last quarter.
That led to an interest income of £9.8m for the quarter, up 30 per cent versus the previous quarter, and its quarterly operating costs were £12.3m.
The bank said it expects to be “generating month-on-month operating profit later this year”.
“It’s been an outstanding quarter for Atom,” said CEO Mark Mullen. “We have achieved several important milestones and continued to drive the growth of our savings and loans.”
“Atom achieved a monthly operating profit for the first time in the company’s history and we’re determined to accelerate further and faster both this year and next as we continue our journey towards sustainable profitability and IPO”.
UPDATE 10-08-2021 – Article updated to include that Atom Bank's £40m funding round has closed.