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Starling Bank’s annual profits have dropped by a quarter, with the digital lender blaming £28 million in losses from Covid bounce back loans and a £29 million FCA fine for the decline.
The bank’s chief executive, Raman Bhatia, said weak internal controls were responsible for the loan losses, and the bank will not seek government reimbursement. The FCA criticized Starling’s financial crime controls as inadequate, further impacting profits.
Starling is now focused on strengthening its compliance and risk management frameworks to prevent similar issues in the future.