Atom Bank Predicts 2022 Profitability With £6bn Deposits

Mark Mullen, Atom’s CEO, told The Times that the company had “vanishingly small” bad debts despite the recession.

Atom Bank, a lender, thinks it will make its first annual profit in 2022. This is because it made a £4.5 million operating profit in its third quarter, which ended in December.

This is the third quarter in a row that the business has made money.

CEO Mark Mullen told The Times that the challenger bank’s bad debts were “vanishingly small” as the 31 March end of its financial year approaches.

Atom’s deposits grew by 45 percent in just the third quarter, reaching £5.5 billion. This led to net interest income of £21.1 million, up from £16.7 million in the second quarter.

Since Christmas, this base of deposits has grown to more than £6 billion.

Atom Bank told AltFi: “We are optimistic that we will hit full year operating profit in March for the first time.”

As the bank’s deposits have grown, so has the number of customers. In Q3, the number of customers grew by 34%, to over 196,000. (and since then surpassing 200,000).

Atom cut its losses to just £2 million in 2021, which was the lowest amount since the bank opened in 2016.

Atom Bank put off its plans to go public last year, even though it was getting close to making money. Mullen said that a “liquidity event” was now more likely to happen in 2024 or 2025.