Starling Bank has reported a drop in profits and revenues, but said revenues at its SaaS subsidiary surged, according to its latest set of financial results.
The UK challenger bank, which has over six million customers, reported that pre-tax profits fell three per cent to £217m while revenues fell from £940m to £887m in the year ending March 2026. The fall in profits was attributed to a fall in interest income, which fell from £882m to £759m, on lower interest rates.
The challenger bank said that transaction volume increased to £216.7bn from £197.1bn while average deposit balance per customer rose 7.9 per cent to £4,241.
The number of customer accounts across the banking group grew from 5.3m to 6.2m in the year, it said. It said that 56 per cent of Starling’s SME customers and 32.5 per cent of its retail customers were using Starling as their main bank.
Starling said Engine, its SaaS platform launched as a Starling subsidiary in 2022 and which employs around 300 people, had doubled its client base to four and its revenue grew 25 per cent on the year to £10.9m.
During the year, Engine signed a new 10-year agreement with Tangerine, a subsidiary of Canada’s Scotiabank, marking Engine’s first client in North America.
Raman Bhatia, CEO, said: “We have delivered a fifth consecutive year of profitability while continuing to invest in the business – from deepening UK customer relationships to scaling our technology platform globally.”
Would you like to write the first comment?
Login to post comments