Starling Bank recorded its third consecutive year of profitability in the twelve months to 31 March 2024, with pre-tax profit climbing 55% year-on-year to £301.1 million. The UK digital bank's annual report was published on 12 June 2024.
Revenue increased 51% over the same period to £682.2 million, driven by higher yields on its interest-earning assets in the elevated rate environment, even as overall lending fell 4.1%. The net interest margin for the year came in at 4.34%.
CUSTOMER BASE REACHES 4.2 MILLION
Starling's group account total reached 4.2 million by the end of the financial year.
The bank reported a post-tax return on tangible equity of 31.5% for the year.
COSTS AND ENGINE SUBSIDIARY
The bank first achieved profitability in 2022. The 55% increase in pre-tax profit came even though operating expenses rose 58%, slightly faster than revenue, nudging the cost-income ratio up to 51.3% from 50.7%.
Starling has also developed a technology licensing business through its Engine subsidiary, which provides the core banking software platform that underpins Starling's own operations to other banks internationally.