By Aisling Finn on Wednesday 25 August 2021
The bank recorded its first monthly profitability in June 2021.
Losses at the bank shrank to an operating loss of £36m in the year up to 31 March, down from £46m in the same period in 2020.
The digital bank turned its first operating profit earlier this year thanks to its £3bn mortgage lending portfolio and claims it is still on track to reach monthly break-even during 2022.
Our losses are shrinking and we achieved our first monthly operating profit in June of 202. We’re confident that we will deliver sustainable profitability in the weeks and months ahead as we continue our journey to IPO”.
A focus on supporting SMEs through the Covid-19 pandemic saw business lending increase from £240m to £662m, with the bank on track to have provided £1bn in lending to SMEs by September 2021.
Atom’s strong SME lending was largely down to the bank being accredited to the Coronavirus Business Interruption Loan Scheme (CBILS) in 2020.
Alongside the bank’s strong lending portfolio, its new savings products also helped it weather the Covid-19-related storm.
The digital challenger opened its newest savings product, the Instant Saver account, to the public in September last year and has already seen deposits reach £1bn, adding to the £1.7bn held in its fixed savings rate accounts.