Durham-based Atom Bank, the UK’s first app-based bank, reported a six-fold jump in annual operating profit in the last financial year, as its mortgage loan book grew and it kept a lid on costs. 

The bank, launched in 2016, provides mortgages and savings through its app, alongside commercial mortgages for small and medium-sized companies. It now has more than 500 employees. 

Privately held Atom reported annual operating profit hit £27 million last year, up from £4 million last year, helped by a 39% increase in lending, and only a slight increase in costs. 

It reported a 31% increase in net interest income to £100 million, while net interest margin held steady at 2.8%. Its loan book increased 39% to £4.1 billion. Residential mortgage balances rose to £3.2 billion, an increase of 55%.

Mark Mullen, Chief Executive Officer at Atom, said: “This has been our best year yet at Atom bank. We have achieved profitability across all measures, grown our loan book significantly, maintained robust credit quality, avoided fraud losses altogether, kept our costs tightly controlled and enhanced our already industry leading customer experience metrics.”

“We begin the new year with tailwinds in the form of strong asset pipelines, excellent technology, a highly engaged team, supportive investors and an enviable reputation with customers. Beyond the confines of banking, we have exciting plans to further reduce our impact on the planet and to create even more opportunities in our local community.