Starling delivers fifth consecutive year of profitability

Starling Bank has reported a fifth consecutive year of profitability as the digital banking group continued to deepen customer relationships in the UK while accelerating the international expansion of its banking technology platform, Engine by Starling.

The Group published financial results for the year ending 31 March 2026 (FY26), reporting profit before tax of £217.1 million, compared with £223.4 million in FY25, against a backdrop of softening interest rates and regulatory restrictions that moderated growth in its UK customer base.

Group platform accounts increased to 6.2 million from 5.3 million a year earlier, while customer deposits rose to £12.7 billion as average deposit balances per customer increased by 7.9% to £4,241.

Group revenue reached £887.4 million, compared with £940 million in FY25, with Starling highlighting strong underlying performance despite the changing interest rate environment.

The Group also reported sector-leading average revenue per active user (ARPAU) of £275 and a pre-tax return on capital employed (ROCE) of 34.6%.

Raman Bhatia, Group Chief Executive Officer, said: “We have delivered a fifth consecutive year of profitability while continuing to invest in the business – from deepening UK customer relationships to scaling our technology platform globally.

“As we approach our tenth anniversary, this is a moment to reflect on how far we have come. Starling was founded to challenge the status quo in banking and that spirit still defines us today; in our expanding range of products, our fresh new brand, and our willingness to use advanced technology to empower customers.

“We are innovating at pace to put the capabilities of AI directly into our customers’ hands, while taking Engine by Starling to customers around the world. With strong momentum across both our UK and our global platforms, we are in the foothills of a huge opportunity, looking out with confidence at our next phase of growth.”

Starling said it continued to strengthen customer engagement during the year, with 56% of SME customers and 35% of retail customers now using Starling as their primary bank account.

The Group also expanded its product offering with the launch of a Cash ISA and continued growth in its savings proposition, helping savings deposits increase by 44.8% to £2.2 billion.

During the year Starling acquired Ember, an accounting and tax platform, and subsequently launched an HMRC-recognised Making Tax Digital solution enabling sole traders and landlords to manage and submit taxes directly through the Starling platform.

The business also accelerated investment in AI-powered banking tools, launching features including Spending Intelligence, Scam Intelligence and the Starling Assistant, which it described as the first agentic AI financial assistant from a UK bank.

According to Starling, the new AI capabilities are designed to help customers analyse spending patterns, identify fraud risks and automate financial tasks, while also improving operational efficiency across the wider organisation.

Declan Ferguson, Group Chief Financial Officer, said: “We grew platform accounts and kept our focus on customer quality during the year, delivering sector-leading revenue per active user of £275.

“Thanks to our robust capital position we were able to acquire Ember – a brilliant business which has already enhanced our SME offering – and with a current surplus exceeding £500 million we remain well placed to pursue further organic and inorganic growth opportunities.

“Our business delivered sustained earnings against a backdrop of softening rates and certain regulatory restrictions that moderated our ability to grow our UK customer base during the financial year. However, the Bank has now returned to growth, with SME account openings more than tripling in April compared to the same period last year.”

Starling also highlighted continued momentum for Engine by Starling, its Software-as-a-Service banking platform, which grew revenue by 25% during the year as its international client base doubled.

The Group invested £19.7 million into Engine during FY26 to support engineering expansion and international growth. Engine has now secured £70 million of committed annual recurring revenue and is targeting more than £100 million in the near future.

During the year Engine signed a 10-year agreement with Tangerine, the Canadian digital banking subsidiary of Scotiabank, marking its first North American client, before also securing a deal with New Zealand’s SBS Bank.

Starling said the agreements demonstrate growing international demand for cloud-native banking infrastructure as financial institutions seek to modernise legacy systems and accelerate digital transformation.

The Group, headquartered in London, now operates from 12 offices globally, including locations across the UK.