Starling Bank has reported a 26% drop in annual profits, with pre-tax earnings falling to £223 million after absorbing £28 million in losses from Covid bounce back loans and a £29 million fine from the FCA.
The bank admitted that weak internal controls led to the loan losses, and it will not seek government reimbursement. The FCA criticized Starling’s financial crime screening as “shockingly lax,” further impacting profits.
Starling is now focused on improving its compliance and risk management frameworks to support future growth.
