ClearBank, a partner of Coinbase, reports its first profitable full year.

ClearBank, a British financial technology firm that facilitates payments for companies like Coinbase, has achieved its first year of profitability, driven by a significant increase in revenues. The company reported a pre-tax profit of £18.4 million ($23.3 million) for the year ending Dec. 31, 2023, marking a substantial improvement from a £7.1 million loss in the previous year. This milestone comes after ClearBank experienced a 91% surge in overall revenue, reaching £111.3 million in 2023.

One of the key factors contributing to ClearBank’s success was the rise in deposits, which led to a 142% growth in net interest income, totaling £81.9 million, as deposits climbed to £6.1 billion. The increase in deposits was partly attributed to the collapse of Silicon Valley Bank, prompting customers to seek alternative banking solutions like ClearBank.

Charles McManus, the CEO of ClearBank, highlighted that while high interest rates played a significant role in the firm’s performance, ClearBank’s success was not solely reliant on interest income. Transaction revenue and other business lines also saw healthy growth contributing to the positive results.

The company caters to various clients in the fintech sector, including Coinbase, Tide, Chip, Raisin, and others, offering banking services and payment solutions. ClearBank stands out as a regulated clearing bank and payments institution in the U.K., ensuring client funds are held securely at the Bank of England.

ClearBank’s Growth and Expansion Plans

Despite its successful financial performance, ClearBank is not rushing into an initial public offering (IPO) given its current cash position and ongoing expansion plans. In 2022, the company raised £175 million in a financing round led by Apax Digital. The CEO emphasized the importance of establishing a presence in the U.S. market before considering a public listing. McManus also revealed that ClearBank is pursuing a European Union banking license through the Dutch central bank, aiming to secure it later this year.

Factors such as Brexit have posed challenges for British fintech firms like ClearBank looking to expand into the EU, as regulatory changes and the loss of passporting rights have impacted operations in the bloc. Despite these hurdles, ClearBank remains focused on its growth strategy and strengthening its position in the financial services industry.

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