Starling Bank reported a pre-tax profit of £217.1 million for the year ending March 31, 2026, marking a 3% decline from the previous year's £223.4 million. This represents the second consecutive annual profit drop for the Goldman-backed UK neobank. Revenue also decreased by 5.6% to £887 million from £940 million in FY25, primarily attributed to a softer interest rate environment and increased provisions for credit losses on its retail lending book, including legacy Bounce Back Loan Scheme (BBLS) positions.
The bank is facing challenges due to lower interest rates, which resulted in interest income falling by £52.5 million to £759.2 million. Additionally, the bank incurred further credit loss provisions related to a tranche of BBLS loans that potentially did not comply with guarantee requirements due to historical fraud check weaknesses. Starling voluntarily removed the government guarantee on these loans, making the bank responsible for potential losses. Regulatory restrictions also moderated the bank's ability to grow its UK customer base during the financial year.
Despite these headwinds, Starling saw customer deposits increase by 5.2% to £12.7 billion, with the average deposit climbing 8% to £4,241. Total customer accounts grew by 17% to 6.2 million, adding approximately 900,000 new accounts. The bank's Engine platform, which sells its proprietary technology to other banks, saw its revenue grow by 25% and secured a 10-year agreement with Tangerine, Scotiabank's subsidiary in North America, and also signed with SBS Bank in New Zealand, indicating a strategic focus on global expansion and technology monetization. Starling also acquired Ember to enhance its SME offering and launched AI-powered tools.
