Revenue at the group – which comprises challenger bank Starling Bank, Engine by Starling and Fleet Mortgages – also saw a substantial increase of 50.6%, reaching £682.2m.

Total deposits rose by 4% to £11 billion, and the bank now serves 4.2 million accounts, up from 3.6 million the previous year.

John Mountain, interim CEO of Starling Bank, said: “This is our third full year of profitability demonstrating a robust financial performance.

“It was a breakthrough year for Starling as we became a global provider of banking Software as a Service through our subsidiary Engine by Starling.

“We’ve heavily invested in Engine because we’re confident it can one day become as big as the UK bank, or bigger.”

David Sproul, group chair of Starling, said: “Starling is now an established part of the UK banking scene. The percentage of active accounts now stands at nearly 80%, while total transactions rose by 21% to £174.1bn during the year. We have more customers, using our services more often, continuing to deepen their relationship with us.

“We look forward to welcoming our new group CEO, Raman Bhatia on 24 June. He brings a wealth of experience in consumer technology, banking and fintech expertise as the Group enters its next phase of growth.”