Atom bank’s annual report shows strong progress since March 2020, with the bank moving towards sustainable profitability

25 August 2021

  • Significant development in Net interest margin with March 2021 run rate at 114bps (March 2020: 10bps). This momentum has continued post year end with NIM of 130bps in June 2021
  • Credit risk performance remained strong despite the impact of Covid
  • Losses narrowed to an underlying operating loss of £36m with strong momentum to monthly break even during 2022, with a first month of operating profit recorded in June 2021
  • A focus on supporting SMEs through the Covid pandemic saw business lending increase from £240m to £662m. Atom is on track to have provided £1bn in lending to SMEs by September 2021

Atom bank, the North East fintech, has reported strong progress in its latest annual report, narrowing its losses and generating a monthly net interest margin (NIM) of 114bps by March 2021 (up from 10bps in March of 2020). NIM continues to increase, reaching 130bps in June 2021. This progress strengthens Atom’s confidence that it will be generating sustainable month-on-month operating profit later this year.

Losses continued to shrink for the full year to 31st March 2021, to an underlying operating loss of £36m (2020: £46m) and statutory loss before other charges of £49m (2020: £57m). As seen in Atom’s Q1 trading update (to 30th June 2021), strong cost control and an improving credit outlook together with a one-off gain from its liquid asset portfolio allowed Atom to record a monthly operating profit in June, further adding to this positive momentum.

The momentum since March 2020 has been underpinned by a number of initiatives, with Atom diversifying its savings range by introducing its Instant Access Saver, completing its largest mortgage securitisation transaction to date (£0.8bn), and placing a strong focus on business lending which saw balances grow from £240m to £662m. Atom was also accredited as a CBILS lender in 2020, ensuring that it continued its support for UK businesses when it was needed most. The bank is on track to have provided £1bn in total lending to SMEs by September 2021.

Continuing the focus on delivering an excellent customer experience, the bank has successfully commissioned its new banking technology stack. Atom partnered with Thought Machine to deliver Vault, a cloud native and smart contract based banking core, which was used to launch Atom’s Instant Access Saver, now with over £1bn of customer savings balances. All savings accounts and balances were successfully migrated to the new platform, and Atom has made important improvements to its banking apps, enhancing both their speed and usability.

Atom continues to be one of the highest ranked UK banks by providing fast, transparent and good value customer experiences, with a Trustpilot rating of 4.6, and a Net Promoter Score of +76.

Mark Mullen, Chief Executive Officer at Atom, said:

“Throughout 2020 we served our customers with simple, transparent and competitively priced products and a first class customer experience.

We continue to believe that the established banking model is well past its sell-by date. Too often it frustrates customers, antagonises regulators, disappoints investors and disengages employees. Why accept adequate when excellence is available?

Atom has momentum, in recent years we have invested significantly in the business and now we’re seeing the results. 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”.


For more details journalists can contact:

For Lansons

Ed Hooper, 07783 387713

For Atom

Becky Dolan (PR & Content Manager),

About Atom bank

Atom bank launched operations in April 2016, offering market-leading Fixed Saver accounts and secured business lending for small and medium-sized enterprises (‘SMEs’), followed by its automated mobile mortgage proposition in December 2016. Atom launched an Instant Saver in September 2020. With a competitive rate, no short-term bonus, no limits on withdrawals and no minimum amount required at opening, the instant saver offers people much-needed flexibility while their cash works harder for them.

Atom is a mobile only and customer first bank. Based in the North East of England with a team of over 400 people, they’re here to do the right thing by their customers with outstanding levels of customer experience whilst taking the fight to the incumbents with exceptional levels of efficiency. At the heart of the bank is the app, with an award-winning customer support team on hand to help with any queries through phone, chat, email and social media.

Atom is an engaged and active part of the North East Community and in 2017 announced a four-year STEM partnership with the Prince’s Trust in North East England.

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 30 years’ experience in the sector and was previously CEO at the multi- award-winning telephone and internet bank first direct. The team is supported by a strong non-exec board, chaired by Bridget Rosewell CBE.