Sumary of UK digital bank Starling trims losses as revenue skyrockets 600%:
- Adrian Dennis | AFP via Getty ImagesLONDON — British digital bank Starling reported a sevenfold increase in revenue in the 16 months ending March 2021 as its lending soared, helping to cut losses in half.
- Losses after tax totaled £23.3 million ($32 million) in the period, down from the £52.1 million Starling lost in its last annual accounts, which covered the 12 months up to Nov.
- The London-based firm has been significantly growing its balance sheet amid a surge in lending thanks to government-backed financing schemes aimed at helping businesses through the coronavirus pandemic.
- Starling said the amount of lending on its books spiked to £2.2 billion “from a very low base.
- 2020, Starling said, adding that it has made a profit each month since then.
- In a trading update Thursday, Starling said sales reached £42.8 million in three months to the end of June 2021, giving it an annual run rate of £170 million.
- Starling is now “very much on track to post our first full year of profitability” in its 2022 fiscal results, CEO and founder Anne Boden told reporters on a call Thursday.
- “Revolut reported annual losses of £167.8 million in 2020, higher than the £106.7 million it lost in 2019. However, Revolut said it was “strongly profitable” in the first quarter of 2021. The company recently raised funds at a $33 billion valuation, putting its market value ahead of British banking giant NatWest’s.