Atom bank, has confirmed that its £40 million raise will be led by Toscafund Asset Management LLP and BBVA. Plans for the raise were unveiled in February 2021. The £40 million raise includes an offer to participate for qualifying shareholders in new ‘A’ class shares in Atom priced at 60 pence.
Atom’s revenues are growing strongly and the bank is on course to achieve over 100bps of Net Interest Margin (NIM) by the end March 2021. Atom is forecast to have grown lending to SMEs on its balance sheet to over £700 million by the end of March 2021, 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.
Atom has also seen strong and profitable growth in its mortgage portfolio, taking over £400 million of mortgage applications in the second half of financial year 2020/21. Since launch, Atom has now loaned £2.8 billion to UK mortgage customers.
Atom’s savings products are now hosted and run by Atom on UK fintech Thought Machine’s cloud native ‘Vault’ platform – part of a transformation to real-time cloud native technology across all of Atom’s banking stack that has also been completed in the last year. Atom launched a new Instant Saver last September to very strong reviews, and has so far added £0.6 billion of Instant Saver balances to its existing £1.7 billion of fixed rate savings.
This step change in income and technology has been achieved whilst avoiding significant growth in operating costs and delivering great customer experience.
Atom CEO Mark Mullen said:
“On the back of our best year ever and with really strong momentum baked into the business, this raise will accelerate our progress even further during 2021, and prepare us for the next stage in our growth and development prior to IPO, which we anticipate taking place in the next two years or so.”