▼ Summary
– Starling Bank reported a second consecutive annual decline in profit for the year ending 31 March 2026.
– The profit drop is attributed to additional expected-credit-loss provisions.
– The bank is also dealing with fallout from the BBLS Covid-loan compliance issue from FY25.
– The FCA imposed a £29 million anti-money-laundering fine on the bank.
– Goldman Sachs backs the UK challenger bank.
Starling Bank has posted a second consecutive annual profit decline, weighed down by higher provisions for expected credit losses. The UK-based digital lender, backed by Goldman Sachs, reported its results for the fiscal year ending 31 March 2026 on Thursday, according to Bloomberg. The latest drop follows a turbulent FY25, when the bank was hit by fallout from the Bounce Back Loan Scheme (BBLS) compliance issue and a £29 million fine from the Financial Conduct Authority (FCA) for anti-money-laundering failures.
The new financial year’s performance reflects additional expected-credit-loss provisions that have cut into earnings. While Starling has rapidly grown its customer base and expanded its product offerings, rising credit risk and regulatory costs continue to pressure the bottom line. The bank’s profitability has now slipped for two straight years, a trend that investors and analysts will watch closely as the lender navigates a more cautious lending environment and heightened scrutiny from UK regulators.
(Source: The Next Web)
