Starling has announced its first full year of profitability with revenue of £188.1 million for the financial year ending 31 March.

The revenue marked a 93 per cent increase from the previous year while the challenger bank’s pre-tax profit for the period was £32.1 million, a swing from a pre-tax loss of £31.5 million in 2021.

In the three months since the financial year ended, Starling has continued to grow, with June 2022 reports totalling an annualised revenue run rate of £331.2 million – driven in large part by year-on-year lending growth of 72 per cent to £4 billion.

In a letter accompanying the financial year report, Anne Boden, chief executive of Starling, described the first full year of profitability as a ‘landmark year’.

Boden also said that the digital bank had now opened more than three million customer accounts, including more than 465,000 accounts for small businesses.

Taking into account the pandemic, Russia’s invasion of Ukraine, and the cost-of-living crisis in the UK, Boden said: “The full effects of these headwinds on consumers and business have yet to be seen and we are watching closely to see how the most vulnerable are being affected.

“We remain well capitalised, and our growth remains strong.”

She added: “While I’m proud of Starling’s success, I am also alive to the potential economic risks that may bring a prolonged economic downturn in the months ahead.”

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