Atom bank raises £30m equity to boost lending
By Gloria Methri
BBVA, Toscafund, and Infinity Investment Partners have agreed to invest £30 million in Atom Bank, the Durham-based digital lender, as it prepares for a 2024 initial public offering.
Atom previously raised £75 million in February, bringing its total funding to £105 million in 12 months. The money will be used to fuel further lending and accelerates Atom’s plans for growth and a future public market listing.
The bank says it has driven increased net interest income in both lending and retail deposits while continuing its control of costs. As a result of its focus on customer outcomes, Atom boasts of being “one of the most trusted banks” in the UK. The bank’s iOS app offers direct, digital banking as well as a value proposition to its employees.
“This year has been one of continued progress and development at Atom,” said Mark Mullen, Chief Executive Officer at Atom. In recent weeks we surpassed £4.5 billion in retail deposits having made waves with the pricing of our fixed and instant savers, opening a void between banks such as Atom that pay a fair return on savings and those that are simply unresponsive to the market.”
“Alongside continued growth in our mortgage and business lending books, the bank is proving that our clear focus on being fast, easy, and value for money is something that will keep benefiting both our customers and shareholders.”
Commenting on the investment, Mullen said, “I am delighted that the bank’s continued success means that BBVA, Toscafund, and Infinity Investment Partners have added to their stake in Atom and taken new capital investment during 2022 to over £100 million. Our prudent, secured lending model, backed by award-winning retail savings allows us to make the very most of capital to support income growth and boost customer numbers. This will remain our focus.”
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