Starling Bank posts fifth straight profit with £217M earnings in 2026

Starling Bank has reported its fifth consecutive year of profitability, with a pre-tax profit of £217.1 million for the year ending 31 March 2026. The bank has also secured strong credit ratings from Moody’s and successfully launched its first Tier 2 bond. Moody’s assigned Baa2 long-term deposit and issuer ratings to Starling Bank Limited. Starling Group Holdings Limited received a Baa3 issuer rating, while its debut £150 million Tier 2 bond was rated Baa3. The bond, due in 2036 with a call option in 2031, carries a fixed rate of 6.625%.

The bond sale achieved record pricing, with a spread of 223.7 basis points over UK Gilts—the tightest ever for a Tier 2 issuance under £200 million. Demand from international investors exceeded 2.5 times the notes available, making the offering oversubscribed. NatWest and Morgan Stanley acted as Joint Lead Managers for the transaction.

After the sale, Starling will hold a capital surplus of over £600 million. Group CEO Raman Bhatia expressed satisfaction with the investor response. CFO Declan Ferguson confirmed the proceeds would support general corporate purposes, including investment in Engine by Starling and potential acquisitions. The bond’s success highlights strong market confidence in Starling’s financial position. The bank now has additional capital to fund growth and strategic initiatives. Moody’s ratings further reinforce its creditworthiness.