ClearBank celebrates growing profitability in H1 2023

ClearBank is on track for its first year of profitability after a successful first half of the year saw it turn a £5.9m profit.

The bank said it had seen a “flight to quality” in the wake of Silicon Valley Bank’s failure, which had seen ClearBank’s business boom.

Revenues in the first half have risen 144 per cent year-on-year to £49.3m, while customer deposits grew 80 per cent from £3bn to over £5.4bn across nearly a million accounts now managed by ClearBank.

“The first half of 2023 has been extraordinary with accelerated growth across all lines of business,” Charles McManus, CEO of ClearBank said. 

“As institutions take flight to quality by seeking scale, security, and safety in their banking partner, we’ve seen significant increases in customer deposits and payments volumes – especially around our embedded banking and open banking propositions.”

McManus said over 200 institutions, including Chip and Raisin, are now using ClearBank’s services with many turning to the bank because of its FSCS protections and the ability to pass on high interest rates to end customers.

ClearBank reached monthly profitability in October 2022, today recommitted to its expectation of reaching UK profitability for the whole of 2023.

European expansion also remains on the cards for the second half of 2023, a move supported by the £175m which ClearBank raised last year.

“As our expansion plans into Europe continue, our clients and partners remain assured that their funds are secure, whilst benefiting from a unique business model that helps them to innovate, differentiate, and grow,” Mark Fairless, chief financial officer at ClearBank said.