Atom bank delivers strong loan book growth in its first year since launch

20 July 2017

Fixed rate savings and residential mortgages and Business Banking Secured Loans, since April 2016 Savings deposits were £538m at year end and had increased to approaching £700m by the end of June 2017 Customer lending was £99m at year end and has increased rapidly post year end with over £700m of loan completions and offers at June 2017 Nearly 18,000 customers opened savings accounts as at year end £113m of capital raised from investors during the year

Atom bank, the UK’s first bank built exclusively for mobile today publishes its Annual Report for 2016/17. Today’s report demonstrates that in the first year as a fully licenced bank, Atom has seen significant growth. With the aim of being the most efficient lending bank in the industry, Atom is on track to become profitable and selfsustaining.

The bank is backed by a strong investor base including BBVA, Woodford Investment Management and Toscafund Asset Management. At the date of signing the Annual Report, the company had raised a total of £185m in equity capital. Further investment will be sought to support growth in lending and to further develop the business’ capabilities.

Chief Financial Officer, Dave McCarthy said “2016/17 was a busy year in which we continued to invest in building the bank and also launched our initial range of banking products. We have built a strong retail funding profile by offering our customers market leading rates. These funds are now being used to lend to home-owners and SME customers and we are seeing particularly strong growth in our mortgage lending”.

“Our cost base is of a size necessary to run an operational bank well and we will see income grow in line with our balance sheet. During 2017/18 we are focussing on growth, efficiency and optimisation which should lead us to break-even during 2019/20.”

Atom bank CEO, Mark Mullen has recently been appointed the challenger representative on the Open Banking Implementation Entity, a significant sign of confidence in Atom and its leadership, as well as a demonstration of support for challenger banks from the government and regulator. Atom has an opportunity to be at the forefront of the challenger banking movement and help shape the future of banking.

Note to Editors

Atom is determined to set the agenda for what the future of banking looks like, redefining the relationship customers have with their money, providing a unique, branch-free, banking experience, built around the best interests of customers. They want customers to be more engaged with their finances, giving them the ability to manage their own money just by using the Atom App. A dedicated 24/7 support team will be on hand to help with any customer queries through phone, chat, email and social media, working out of their Durham HQ.

Atom is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the PRA. Founded in 2014 and based in the City of Durham, Atom has a growing team of over 300 people drawn from across the country, working with partners to bring pioneering technology to Europe for the first time. Atom is building the UK’s first bank designed specifically for digital, offering easy and convenient banking, along with unique and engaging ways to manage money. Atom has been recognised in KPMG’s 2016 Fintech 100, being in the Top 10 companies using technology to drive disruption globally within the financial services industry.

The Atom executive team are highly experienced, having built and run some of the most well respected banks in the UK. CEO Mark Mullen has 25 years’ experience in the sector and was previously CEO at the multi- award winning telephone and internet bank first direct. The team are supported by a strong non-exec board, which includes founder and Chairman Anthony Thomson, also the founder and former Chairman at Metro Bank. He is Chairman of the Financial Services Forum, the UK’s leading membership organisation for senior FS industry executives and Chairman of the National Skills Academy for Financial Services, a national charity.