Atom bank has raised over £100m in new equity capital from long-term shareholders, BBVA, Toscafund and Infinity Investment Partners.

The bank believes this is the largest private capital raise by a digital bank in the UK this year and the funds will be used to accelerate lending following a period of record growth.

The capital is expected to enable Atom to accelerate balance sheet growth, and create an enhanced proposition for savers, homeowners, first-time buyers and SMEs.

The bank recently announced its first full year of operating profit, with revenue growth of 62% and the number of customers doubling to 224,000, with savings deposits totalling £6.6bn.

Atom has already loaned more than £4bn to UK homeowners, and over £1bn to small businesses since its launch, with the funds enabling the digital bank to further ramp up lending activity.

Chief executive officer at Atom bank, Mark Mullen, said: "I’m delighted with this vote of confidence in Atom from our investors, and to have their ongoing backing is a fantastic boost.

"Atom continues to grow strongly and sustainably. We are a cautious bank with an excellent track record of lending responsibly and successfully. We have a compact business model and we keep tight control over our costs. We look after our customers by offering them consistently great value and treating them fairly.

"This money will be put to work to drive growth and to fuel the development of our franchise. UK customers need better outcomes and better banks. Our vision remains as valid today as it was when we founded the company – change banking for good, for the better, for everyone."

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