Atom bank raises £100m+ in new equity capital

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Atom bank has raised over £100m in new equity capital from long-term shareholders BBVA, Toscafund and Infinity Investment Partners.

The bank claims it is the largest private capital raise by a digital bank in the UK this year and the funds will be used to accelerate lending following a period of record growth.

Atom recently announced its first full year of operating profit, with revenue growth of 62%, customer numbers doubling to 224,000, and savings deposits rising to £6.6bn.  

Its current quarterly run-rate is generating +£100m of annualised net interest income and +£25m of operating profit.

The capital raise process started early this year, and forms part of Atom’s long-term strategy to deliver a liquidity event in the future.  

Mark Mullen, CEO of Atom bank, said: “I’m delighted with this vote of confidence in Atom from our investors, and to have their ongoing backing is a fantastic boost.

“Atom continues to grow strongly and sustainably. We are a cautious bank with an excellent track record of lending responsibly and successfully. We have a compact business model and we keep tight control over our costs. We look after our customers by offering them consistently great value and treating them fairly.

“This money will be put to work to drive growth and to fuel the development of our franchise. UK customers need better outcomes and better banks. Our vision remains as valid today as it was when we founded the company – change banking for good, for the better, for everyone.”

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