British fintech firm ClearBank swung to an £18.4 million ($23.3 million) pre-tax profit in the year ending Dec. 31, 2023, up from a £7.1 million loss in 2022.
British fintech firm ClearBank swung to an £18.4 million pre-tax profit in the year ending Dec. 31, 2023, up from a £7.1 million loss in 2022.
The firm swung to an £18.4 million pre-tax profit in the year ending Dec. 31, 2023, according to financial statements released Thursday. That's up from a £7.1 million loss in 2022. The firm benefited heavily from high interest rates, which have driven a spike in deposits as consumers and businesses look to gain more bang for their buck by storing cash in interest-bearing accounts.
There was "no single driver" of ClearBank's positive performance in 2023, McManus said, adding ClearBank benefited from a number of things, such as its clearing business for authorized electronic money firms and growth in the use of bank-to-bank payment services amid higher credit card fees. "Our customers have actually left more cash with us rather than take the the fractional banking risk in relation to Barclays through those stress periods," McManus noted.
ClearBank posted gross fee income of £31.4 million in the full year, with reccurring platform a key driver. Embedded banking end-customers, or customers of ClearBank's customers, grew 93% year over year to 1.2 million.McManus said that ClearBank is in no rush for an initial public offering, adding that it already has a substantial amount of cash on its balance sheet. In 2022, ClearBank raised £175 million in a financing round led by private equity firm Apax Digital.
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