Goldman-backed Starling Bank reports 26% profit drop as it flags Covid loan fraud issue

LONDON — British online lender Starling Bank on Wednesday reported a sharp drop in annual profit, citing an issue with Covid-era business loan fraud and a regulatory fine over financial crime failings. Starling, which offers fee-free current accounts and lending services via a mobile app, posted profit before tax for the year ending March 31, 2025 of £223.4 million ($301.9 million), down nearly 26% year-over-year. Revenue at the bank totalled £714 million, up about 5% from £682 million a year ago. However, that marked a slowdown from the more than 50% revenue growth Starling saw in its 2024 fiscal year. Profits for the year were impacted by a £29 million fine by the U.K.'s Financial Conduct Authority over failings related to Starling's financial crime prevention systems. Starling also flagged an issue with the Bounce Back Loan Scheme (BBLS) that was designed to provide firms with access to cash during the coronavirus pandemic. Starling was one of several banks that were approved t ... Read full article.