The bank says a focus on efficiency coupled with impressive income growth has resulted in narrowing its underlying operating loss significantly to £2m from £36m last year.

While Atom’s income grew by over 200% in the year, running costs increased by only 6%.

The growth in income has been attributed to increases in the loan book across both business and residential lending, with Atom’s total loan book reaching £3.3bn up from £2.7bn in FY21.

Atom reported a record-breaking year for business lending, growing the book to £1bn, compared to £0.7bn in FY21 having participated in the government’s Coronavirus Business Interruption Loan Scheme (CBILS). 

Residential mortgages and savings also grew substantially during the year. 

Atom grew its on-balance sheet residential mortgage lending to £1.5bn, up from £1bn in FY21, after the bank expanded its residential lending assets to include near-prime retail mortgages.

Atom raised £117m in new capital during the year, with this capital predominantly being used to fund income-generating lending. 

This year Atom says it plans to achieve full-year profitability and continue its growth journey.

Atom chief executive officer Mark Mullen says: “It has been a significant year of progress for Atom. We have continued to grow our franchise and are on the cusp of achieving sustainable full-year profitability, proving that it is possible to do so while providing customers and employees with a better deal.”

“Atom continues to offer customers a better deal, with exceptional service, because that, we feel, is the right thing to do. We are here to make the experience of borrowing and saving simpler, faster and better value than anyone else. In the last 12 months we have made remarkable progress on our journey towards realising that ambition.

“Whilst it might have been unfashionable at some point to focus on the fundamentals of banking and the relationship between savers and borrowers, we think there has never been a more important time to play the role of a responsible lender. As we all search for growth and support those who invest to grow, there is a key role for banks to play; after all, leverage makes the world go round.”