Starling pre-tax profits leap on higher interest rates
Starling's revenue rose from £452.8million to £682.2million in the 12 months to March.
Starling, the business banking to software to buy-to-let mortgages group, says its annual pre-tax profits have rocketed 54.7 percent to £301.1million, thanks in part to higher interest rates.
It said that over the 12 months to the end of March, revenue rose from £452.8million to £682.2million, which helped it achieve a third year of profitability.
High interest rates boosted its margins from 2.7 percent to 4.3 percent, while customer accounts rose from 3.6million to 4.2million and card spending rose 20.6 percent to £19.9billion.
It added that its deposits rose by four percent to £11billion, helped by it attracting £430.6million worth of fixed-term deposits.
Starling expects to see continued growth from its namesake bank, but it has high hopes for Engine, its banking software-as-a-service (SaaS) business.
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Since it launched the business in November, it has won two clients, Salt Bank in Romania and AMP in Australia.
Interim chief executive John Mountain said: “Looking to the future, I see in Starling a well-capitalised bank that has grown rapidly but has captured 2.8 percent of the UK current account market so far, leaving significant headroom for further domestic expansion.
“In Engine, I see a world-class technology provider that has just begun to crack open a £91billion global addressable market for SaaS.”