Coinbase partner ClearBank achieved profitability for the first time last year, with total revenue growing 91%

British fintech firm ClearBank posted a pre-tax profit of 18.4 million pounds ($23.3 million) in the year ended December 31, 2023, compared with a loss of 7.1 million pounds in 2022, according to financial reports released on Thursday. This is the first time the company has achieved a full-year profit. ClearBank's total revenue increased 91% year-on-year to £111.3 million. This is largely driven by a high interest rate environment, which has fueled a surge in deposits as consumers and businesses look to earn higher returns by depositing cash into interest-bearing accounts. It is reported that ClearBank provides payment services to companies such as Coinbase. One of ClearBank's major clients, Tide, offers its business customers an interest rate of 4.33% in the UK. ClearBank CEO Charles McManus said that the company's good performance is not just a single driver, but multiple factors such as authorized e-money company settlement business and the growth in the use of interbank payment services have contributed. But high deposits were undoubtedly a key driver of ClearBank's performance, with net interest income rising 142% to £81.9m and total deposits reaching £6.1bn. It is worth mentioning that after the collapse of Silicon Valley Bank, a large amount of deposits poured into ClearBank. McManus said ClearBank has no plans for an IPO and is currently applying for an EU banking license through the Dutch central bank, which is expected to be obtained later this year. He also mentioned that Brexit has made it more difficult for companies to obtain a banking license in the EU. (CNBC)