The privately-held fintech, launched in 2018, adds that its residential mortgages grew 9% in the three months to June, leaving “lending on track to support its targeted return on equity of 24%”.

The challenger bank says the strength of its mortgage business allowed it to launch a range of house purchase loans for customers with near-perfect credit in June.

It adds that deposits into its instant saver product passed £1bn, while total customer deposits grew by 16% to £2.5bn.

However, it did not disclose the size of its operating profit. 

The lender is part of the government-backed Coronavirus business interruption loan scheme that lends to small firms hit by the pandemic, which drove business loans quarterly growth up 16% to £759m.

It adds that its net interest margin hit 1.30%, up from 1.02% at the end of the last quarter.

The lender says: “Strong cost control and an improving credit outlook together with a one-off gain from its liquid asset portfolio have enabled Atom to record an operating profit for the month of June.

“With the build of the bank infrastructure complete, further asset growth will allow it to exploit its embedded cost leverage opportunity. These results further strengthen Atom’s confidence that it will be generating month-on-month operating profit later this year.”

Atom Bank chief executive Mark Mullen adds: “We have momentum – it’s been an outstanding quarter for Atom. We have achieved several important milestones and continued to drive the grow of our savings and loans.

“We have also maintained our reputation for exceptional service – a key focus for us in that it remains a challenging time for our customers, our people and the country as a whole.

“We will continue to provide our customers with simple, transparent and competitively priced products and support them with an outstanding service experience.

“Atom achieved a monthly operating profit for the first time in the company’s history and we’re determined to accelerate further and faster both this year and next as we continue our journey towards sustainable profitability and IPO”.