Clearbank ups profit and eyes US expansion – but it has no plans for an IPO
Clearbank today reported a pretax profit of £5.9m for the first half of the year as it said it was eyeing an expansion into the US.
Revenue more than doubled compared to the same period last year, reaching nearly £50m, while deposits increased 80 per cent to hit £5.4bn, the firm said.
Clearbank said its “unique combination” of next-generation technology, fully-licensed banking services, and embedded banking proposition ensured “accelerated growth with significant momentum across all lines of the business.”
Clearbank does not lend out customer funds, making it immune from bank runs. It saw a significant influx of deposits in the aftermath of Silicon Valley Bank’s (SVB) collapse as customers fled for safety.
Mark Fairless, chief financial officer, said the momentum seen in its results today is the “strongest its been” and there was a “good line of sight” for its continued expansion into Europe next year.
“I don’t think the half one results we’re looking at here are an aberration, I think they are an indication of the direction we are moving,” Fairless added.
He said that the launch into Europe should act as a “catalyst” over the next year to push Clearbank forward, with the potential to enter the US market the following year.
“We want to be one of the best… and it’ll take going to Europe and the US to establish that infrastructure right across the globe and service more of our global customers in those currencies is most definitely our ambition,” Charles McManus, Clearbank’s chief executive officer, said.
Clearbank, however, does not have plans for an IPO for the foreseeable future, McManus said, adding that it was well funded and didn’t need additional funding at this time.