Atom bank has announced its “strongest ever” financial results since its launch in April 2016.

The challenger bank’s operating profit jumped to £27 million during the 12 months to March 2024, a 600 per cent increase from £4 million in the previous year.

The neobank said its results were driven by a 39 per cent increase in lending, with a loan book worth £4.1 billion, as well as low costs of around four per cent.

The company said that a key part of this was the growth in residential mortgage balances to £3.2 billion, which increased by 55 per cent.

Additionally, there has been “significant” growth in commercial mortgages and balances, which rose by around 19 per cent to £600 million.

In November last year, Atom raised £100 million from existing investors, using the additional capital to accelerate balance sheet growth and further scale the business.

Commenting on Atom’s latest financial results, the bank’s chief executive Mark Mullen said that the organisation had managed to avoid fraud losses and enhanced its customer experience metrics during the year.

“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,” he added. “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.

“UK banking remains dominated by players with low growth, high costs and indifferent customer service. We remain entirely focused on serving the needs of borrowers and savers, without the soaring costs and operational complexity of transactional banking products like current accounts. Ultimately, this is the only way to disrupt the status quo.”

---