App-based bank Atom to raise £40M

Atom, a retail bank in the United Kingdom announced that it plans to raise £40m from existing shareholders as it moves to profitability from its mortgage and business lending within a year, and to IPO the year after.

According to the press release, the bank's revenues are growing strongly and it is on course to achieve 100bps of Net Interest Margin (NIM) by the end of March 2021. By the end of March 2021, Atom will have grown lending to SMEs on its balance sheet to over £700m, which is a tripling of business loans in the last 12 months. This growth has been achieved both within the Coronavirus Business Interruption Loan Scheme and also independent of government schemes.

Meanwhile, Atom has seen strong and profitable growth in its mortgage portfolio, having already added £362m of mortgages in the second half of its financial year 2020/21. Since its launch, Atom has lended £2.8bn to UK mortgage customers. The Durham-based bank also confirmed its place in the secondary markets for UK mortgages, issuing a £775m prime mortgage securitisation last year.

"As an exceptionally engaging and efficient banking machine, Atom helps and supports customers to own their homes or build their businesses. During the COVID-19 pandemic, We've been there for new and existing customers. And in a year when we have held our operating costs constant, I'm delighted that we have coupled substantial income growth with an enviable record of customer experience," said Mark Mullen, Chief Executive Officer at Atom.