Atom Bank has reached profit for the first time since its launch.

Despite what it described as a “volatile economic backdrop”, the digital-only bank announced an annual operating profit of £4 million for the year, a vast improvement on the £2 million loss recorded for the previous 12-months.

The bank, which was founded in 2013, said that the results had followed a year of “enormous progress”, with revenue growth of 62 per cent largely outstripping a rise in operating costs.

Over the period, savings deposits increased to £6.6 billion, more than double that of the previous year, while customer numbers also nearly doubled to 224,000.

The app-based bank said that it has remained focussed on developing its "business model efficiency" as a core differentiator in the market.

“It has been an important year for Atom,” said Mark Mullen, chief executive of Atom Bank. “We’ve grown strongly, kept our costs tight and delivered our first annual operating profit.”

Mullen added that the bank has passed on over 70 per cent of the Bank of England’s base rate increases to savers but only 70 per cent of them to its standard variable rate mortgage borrowers.

He continued: “We believe that the lowest cost wins. Lowest cost and highest quality wins every time. If that isn’t the new banking paradigm, then it ought to be.”

The results follow reports in April which suggested Atom was seeking out fresh investors to take part in a £100 million funding round likely to be its last before an initial public offering.

Atom recently added £30 million in equity to its balance sheet with a previous investment of £75 million in 2022 from existing investors including Toscafund and Infinity Investment Partners.

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