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Starling Bank has reported a 25% drop in annual profits, citing £28 million in losses from Covid bounce back loans and a £29 million fine from the FCA for weak financial crime controls.
The bank admitted that its own weak controls led to the loan losses, and it will not seek government reimbursement. The FCA criticized Starling’s financial crime screening as inadequate, further impacting the bank’s bottom line.
Starling is now focused on improving its compliance and risk management frameworks to support future growth.