Durham’s Atom Bank raises £100m in new equity

Mark Mullen, Atom CEO

Durham-based Atom Bank, the UK’s first app-based bank, said it has raised over £100 million in new equity capital from long-term shareholders BBVA, Toscafund and Infinity Investment Partners.

Atom said this is believed to be the largest private capital raise by a digital bank in the UK this year, and the funds will be used to accelerate lending following a period of record growth.

Analysts said the funding round values the firm at about £362 million, down from £435 million at the start of the year.

Atom recently announced its first full year of operating profit.

The FY23 results saw revenue growth of 62%, customer numbers doubling to 224,000 and savings deposits rising to £6.6 billion.

“Atom has already eclipsed that figure for operating profit this financial year, with current quarterly run-rate generating +£100m of annualised net interest income and +£25m of operating profit,” said Atom.

“The bank also has industry leading levels of customer service, with TrustPilot, iOS and Android ratings of five stars and a NPS score in the high 80’s.

“The capital will enable Atom to accelerate balance sheet growth, and create an even more compelling proposition for savers, homeowners, first time buyers, and SMEs, which is faster, easier and better value than what is offered by competitors and the high street banks.

“Atom has already loaned more than £4bn to UK homeowners, and over £1bn to small businesses since launch, with the funds enabling the digital bank to further ramp up lending activity.

“The capital raise process started early this year, and forms part of Atom’s long-term strategy to deliver a liquidity event in the future.”

Atom CEO Mark Mullen said: “I’m delighted with this vote of confidence in Atom from our investors, and to have their ongoing backing is a fantastic boost.”

“Atom continues to grow strongly and sustainably. We are a cautious bank with an excellent track record of lending responsibly and successfully.

“We have a compact business model and we keep tight control over our costs. We look after our customers by offering them consistently great value and treating them fairly.”

“This money will be put to work to drive growth and to fuel the development of our franchise. UK customers need better outcomes and better banks.

“Our vision remains as valid today as it was when we founded the company – change banking for good, for the better, for everyone.”