Atom bank intends to use proceeds from the equity financing to support its lending customers, including homeowners, first-time buyers, and SMEs, along with driving its ongoing growth and development
UK-based digital lender Atom bank has signed agreements with BBVA, Toscafund and Infinity Investment Partners, to secure additional £30m in equity financing.
The current financing follows the company’s £75m funding raised in February this year, bringing its total investment to more than £100m in the last 12 months.
Atom bank will use proceeds the from equity financing to further support its lending customers, including homeowners, first-time buyers, and SMEs
In addition, the financing will support the company’s ongoing growth and development, along with its plans for market listing in the future.
Atom chief executive officer Mark Mullen said: “I’m 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 £100m.
“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. This year has been one of continued progress and development at Atom.”
Atom claimed that it has delivered a strong performance in 2022, with growth in both lending and retail deposits driving the increased net interest income.
The company has delivered positive operating profit whilst the bank continues its disciplined control of costs.
It benefits from improved employee retention, strong applications for new roles, and low employee absence rate, and its shift to a four-day working week, said the company.
Mullen added: “In recent weeks we surpassed £4.5bn in retail deposits having made waves with the pricing of our fixed and instant savers, opening up 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.”
In May last year, Atom has teamed up with UK-based small business loan platform Funding Circle, to provide £300m in new funding to small businesses.