ANNUAL REPORT - Starling Bank

1 Starling Bank limited ANNUAL REPORT and consolidated Financial Statements. For the year ended 30 November REPORTSTARLING BANKS tarling Bank limited ANNUAL REPORT and consolidated Financial Statements. For the year ended 30 November Starling BANKCONTENTS01 COMPANY INFORMATION 0202 Starling IN NUMBERS 0403 GROUP STRATEGIC REPORT 06 Business Review 07 Financial Review 12 Principal Risks and Uncertainties 15 Risk Management Strategy 20 Risk Management Framework 21 Risk Operating Model 25 Corporate Governance 2604 GROUP DIRECTORS REPORT 3005 STATEMENT OF DIRECTORS RESPONSIBILITIES 3406 INDEPENDENT AUDITOR S REPORT 3607 FINANCIAL STATEMENTS 4408 NOTES TO THE

2 FINANCIAL STATEMENTS 5009 ABBREVIATIONS AND ACRONYMS 121 Starling BANKS tarling Bank limited ANNUAL REPORT and consolidated Financial Statements. For the year ended 30 November Bank limited ANNUAL REPORT and consolidated Financial Statements. For the year ended 30 November Starling Bank limited ANNUAL REPORT and consolidated Financial Statements. For the year ended 30 November BANK03 DirectorsOliver Stocken CBE (Independent Non-Executive Chairman)Mark Winlow (Independent Non-Executive Director)Steve Colsell (Independent Non-Executive Director)Victoria Raff (Independent Non-Executive Director)Marian Martin (Independent Non-Executive Director, appointment effective 26 June 2019)Marcus Traill (Non-Executive Director)Lazaro Campos (Non-Executive Director)Anne Boden MBE (Chief Executive Officer)Tony Ellingham (Chief Financial Officer)

3 Company SecretaryMatthew NewmanRegistered Office3rd Floor2 Finsbury AvenueLondonEC2M 2 PPCompany Registration Number09092149 (England and Wales)AuditorKPMG LLP15 Canada SquareCanary WharfLondonE14 5 GLSTARLING BANKSTARLING BANKCOMPANY INFORMATIONS tarling Bank limited ANNUAL REPORT and consolidated Financial Statements. For the year ended 30 November 04 Starling Bank limited ANNUAL REPORT and consolidated Financial Statements. For the year ended 30 November IN NUMBERSSTARLING IN NUMBERS926,000+87,000+Number of GBP business + sole trader accounts 504m+ Retail GBP deposits 8,550+Average business + sole trader deposits44,000+Number of euro personal accounts 467m+Business + sole trader GBP deposits 33m+Retail Euro deposits700+Number of euro business + sole trader accounts 940+Average retail deposits 2mBusiness + sole trader Euro deposits 1,660m+Volume of retail card transactions.

4 GBP 41m+Volume of business + sole trader card transactions, Apple App Store Rating 217m+Volume of business + sole trader card transactions, GBP 28mIn retail transactions through Post Office pcm886 Employees 994m+Volume of retailcard transactions, EUR 5mIn business + sole trader transactions through Post Office pcm4 Offices in London, Southampton, Dublin, CardiffNumber of GBP personal accountsStarling Bank limited ANNUAL REPORT and consolidated Financial Statements. For the year ended 30 November Starling Bank limited ANNUAL REPORT and consolidated Financial Statements.

5 For the year ended 30 November GROUP STRATEGIC REPORTS tarling provides banking but not as you know it. Built for the millions of people who live their lives on their mobile phones, our banking app provides personal, joint, euro and business accounts for individuals and small business Starling we want to help customers feel more in control of their finances. That s why we ve built our banking app with real time balances, instant notifications, spending insights, no fees overseas, 24/7 support and an application process that only takes no branches, we offer a different customer proposition in the world of retail banking as well as multiple revenue streams for the business.

6 Through the Starling Marketplace, we give customers in-app access to third party financial services. We also provide ground-breaking B2B banking and payments the time of signing these accounts, the world is experiencing unprecedented disruption caused by the Coronavirus pandemic. This represents not only a public health and economic crisis, but a massive societal upheaval that is touching each and every one of us. At Starling , we are fortunate to have investors who are willing to stand behind the business as evidenced by our recent capital raise.

7 We are focused on all of our customer s long-term financial wellbeing and to help support our business customers in particular we have applied to the British Business Bank for accreditation to the Government s Coronavirus Business Interruption Loan Scheme (CBILS).These unprecedented events mean that the basis on which the Group is reporting and planning its future is changing rapidly. At the time of writing, we have read and interpreted the announcements that have been made by the UK Government, the Financial Reporting Council, the Bank of England, the PRA and the FCA.

8 The Board will continue to assess the impact of Covid-19 on the Group and its business model as well as undertaking stress tests in line with regulatory guidance. In the light of the current economic outlook and high levels of uncertainty, the Board has taken action to revise the Group s growth targets for 2020 and to preserve capital. At the heart of Starling s strategy is the smart use of modern technology. This means that we are uniquely positioned to ensure business continuity and to support our customers. Additionally, the safety and wellbeing of our employees is equally our priority.

9 In contrast to incumbent Banks that rely on outsourced expertise, legacy systems or a mosaic of vendor packages and their own data centres, Starling has in-house engineering teams and its own core Banking software running in public cloud infrastructure. As a digital bank, Starling offers a scalable and resilient service that s not tied to a location and that can continue to be available to customers, 24/7, with a workforce that can work from the safety of their own back on 2019 The last financial year saw continued growth for Starling ; we passed one million customer accounts and 1 billion on deposit.

10 This amounts to a near tripling of our customer base in the space of a year and a five-fold increase in our deposit base. We also more than doubled our headcount to nearly 900, raised million more in funding, after issuance costs, were awarded a 100 million grant and opened three new succeeded in taking the Company to scale without losing sight of what makes it different and special and while staying true to our original goals: to build a current account around customer needs. We had a little help from our friends along the way; our customers continue to provide feedback that has helped make our app functionality better.