London fintech ClearBank swung to a loss in 2024 as the costs of European expansion took their toll on the firm’s bottom line.
The British fintech reported its UK business was profitable for the second year in a row – though pre-tax profit did fall around 60% to £9.9m compared with 2023.
The implementation of ClearBank’s group structure, which includes its European entity, brought its profits down to a pre-tax loss of £4.4m.
The fintech-as-a-service and clearing bank provider expanded to the European Union last year after securing a banking licence in the Netherlands, described by then CEO Charles McManus as the “first milestone in our global expansion strategy”.
ClearBank’s new CEO Mark Fairless, brought in after McManus stepped down last month, said: “We have realised a number of our key strategic priorities in 2024, turning particular attention to international expansion.
“Building on our continued profitability in the UK, we are poised to increase our market share across Europe to further support our clients’ growth, as well as continuing to push boundaries through product innovation. With the investments made last year, we are well-positioned for long-term, sustainable success as we work towards our ambition to become a global leader.”
ClearBank reported fee-based income rose 63% to £53.3m, while total deposits grew more than three-quarters to £10.8bn. In 2024, ClearBank added 40 new clients to its portfolio, reaching 250 total. Among its new clients was Revolut, the UK’s largest digital bank.
Read more: ClearBank expands crypto market position with Kraken deal
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