ClearBank, the UK fintech which provides clearing services and banking infrastructure to financial clients, swung into a £10.2m loss in 2024, as it was hit by the cost of its European expansion.
ClearBank, whose financial institution partners include Revolut, Wealthify and Chip, has for the first time reported its financial results at a group level, including its UK and European entities.
ClearBank, which has more than 250 clients, made a pre-tax loss of £10.2m in 2024, compared to a £1.3m profit the year previous, new accounts show.
It attributed the loss to investing in technology and product innovation and the cost of its European expansion, as well as the cost of introducing its new group structure.
However, ClearBank said its UK business remained profitable for the second year running, reporting a £9.9m pre-tax profit on an adjusted basis in 2024.
It said UK profits were driven by growth in fee-based income and an uptick in deposits.
European expansion is a key focus for ClearBank, which is now in 11 European markets and received a European banking licence last year.
ClearBank is backed by Apax Digital and CFFI UK Ventures.
Other highlights in 2024, said ClearBank, which provides over 13m accounts, include growth in customer balances and transaction volumes. It said it nearly doubled its customer balances, which stood at £10.8bn in 2024, compared to £6.1bn in 2023.
Mark Fairless, CEO of ClearBank (pictured), said: “We have realised a number of our key strategic priorities in 2024, turning particular attention to international expansion, and significantly improving our earnings quality, as we build a more efficient and scalable business model that stands the test of time.
“Building on our continued profitability in the UK, we are poised to increase our market share across Europe to further support our clients’ growth, as well as continuing to push boundaries through product innovation. With the investments made last year, we are well-positioned for long-term, sustainable success as we work towards our ambition to become a global leader.”
In March this year, ClearBank co-founder Charles McManus stepped down as CEO after nine years.
Last week, ClearBank boosted its position in the crypto market via a partnership supporting the British operations of US exchange Kraken.
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