Starling Bank has reported its first full year profit following its move into the mortgage market.
The Bank reported a pre-tax profit of £32.1m for the financial year ending 31 March 2022 following on from a pre-tax loss of £31.5m for the period to 31 March 2021.
Revenue for the same period to 31 March 2022 was £188m.
Earlier this year Starling acquired buy-to-let lender Fleet Mortgages which has over £2bn of mortgages on the balance sheet.
Lending growth has been funded by Starling’s growing deposit base, which increased by a further £600m in just three months.
The pre-tax ROTE for June 2022 is already best-in-class for a UK bank at 17.5%, compared to c.11% for the large high street banks and 16% for other specialist and mid-tier lenders.
This is despite Starling holding a significant capital surplus above its regulatory minimum as a result of its most recent funding round.
Anne Boden, founder and chief executive of Starling Bank, said: “With our first full year of profitability, we’ve placed ourselves firmly in a category of one.
“As an innovative digital bank with a sustainable business model and a strong balance sheet we are generating our own capital and we stand apart from both the old banks and other challengers.”
