The results cap a signficant turnaround for Starling in the last 12 months given that the bank lost £31.5m for the previous financial year, ending March 2021.
Revenues almost doubled in the last year to £188m, up by 93% from the previous year.
The results also buck a trend among many fintechs to see their valuations reduce amid market uncertainty, something which Starling boss Anne Boden said was related to the inability of many fintechs to turn a profit.
“What we’re seeing is that there is a correction in fintech stocks that are not profitable,”said Boden in a call with reporters.
“If you look at the listed markets and certain entities such as buy now pay later and such like, we see a huge correction going on there.”
Unlike other fintechs, Starling has also seen its valuation increase in the last 12 months, reaching £2.5bn in April this year.
Starling’s financial results also come two days after it abandoned its plans to launch in Ireland as a first step in its European expansion strategy.
Boden adressed that decision in the call with reporters, stating that Starling may still look to expand in Europe but would look to do so via a bigger country than Ireland.
The CEO also responded to criticism from former UK government minister Lord Agnew who attacked the role of Starling and other banks in the Covid loan programme, and their efforts to prevent fraud.
“He is just wrong,” said Boden. “Starling has done a fantastic [job] in making sure we did all the checks necessary and more.”
,UK digital bank Starling has turned a £32m profit for the last financial year, marking its first full year of profitability.,
