ClearBank’s H1’23 results indicate momentum is the strongest it's been

ClearBank’s results released on Thursday for the first half of 2023 show it is set to hit full-year profitability. The embedded banking and clearing provider recorded revenue of close to £50 million; more than double the figure hit in the same period in 2022. Additionally, it has reported pre-tax profits of £5.9 million.

Notably, the number of UK-based fintechs that reported profitability last year is relatively small. This is as the country and broader continent face an array of economic challenges.

ClearBank’s H1’23 results

ClearBank recorded its first monthly profit in October 2022. With that, it joined the rather small group of UK fintechs that recorded profits in the past year. Other companies within the aforementioned group include Starling Bank, OakNorth, and Zopa.

The company’s H1’23 results published on Thursday showed a revenue increase of 114% YoY. At the same time, it reported an increase in payment volumes and customer deposits by 39% and 80% respectively. These figures have the bank set to hit full-year profitability in 2023.

According to the clearing bank’s CEO, Charles McManus, “As institutions take flight to quality by seeking scale, security, and safety in their banking partner, we’ve seen significant increases in customer deposits and payments volumes - especially around our embedded banking and open banking propositions.”

He further noted that the firm’s launch into Europe will be a catalyst over the coming year with a potential to expand into the US the following year. Granted, it doesn’t have plans for an IPO at the moment. However, it acknowledges that the seen momentum is the “strongest it's been”.

The fintech company credits the recorded growth to its “unique combination” of embedded banking proposition, next-generation technology platform, and fully licensed banking services. Seeing that the bank does not lend customer funds, it is rather immune from bank runs. In fact, its customer deposits rose significantly after the collapse of Silicon Valley Bank as more customers sought safety.