Starling’s Profits Hit by Regulatory Challenges

Revenues rose from £682 million to £714 million, and Starling now serves around 4.6 million customers.

The profit decline follows a £29 million fine from the FCA last year for weak financial screening controls. Additionally, Starling set aside £28.2 million related to some Bounce Back Loans issued during the Covid pandemic that may not meet government guarantee requirements. These loans represent 1.8% of the £1.6 billion Starling lent under the scheme.

Read Also - Dojo Funding News -London-Based Dojo Secures €168.6M Equity Funding

While the loans boosted Starling's growth during the pandemic, the bank faced criticism over its fraud controls. Former anti-fraud minister Lord Agnew accused Starling of failing to protect taxpayer interests—a claim the bank denies.

Commenting on its financial results, Raman Bhatia, Starling group chief executive, said: “These results represent an important milestone, marking the group’s fourth consecutive year of profitability and revenue growth.

“This performance derives from our commitment to providing customers with innovative banking solutions and exceptional service.

“We are particularly pleased with Starling Bank’s success in attracting new customers, as evidenced by the continued growth in our deposit base and open accounts.

“In the last year we demonstrated our commitment to addressing legacy matters, investing in our people and capabilities so we now move forward from a position of strength.

“We will leverage our robust capital position to continue to scale our growth in the UK by helping our customers become better with money. We will also make great strides in turning Engine by Starling into a global success.”

Starling Bank said its revenue growth shows strong performance across all areas of the business. Customer deposits rose from £11 billion to £12.1 billion year-on-year.

The number of account holders increased from 4.2 million in 2024 to 4.6 million.

Starling also shared an update on its SaaS arm, Engine, saying it is building a solid pipeline and could generate over £100 million in recurring revenue in the near future.