According to The Times, JP Morgan and Lloyds Banking Group have both expressed interest respectively in the challenger bank.
JP Morgan is currently gearing up for a 2021 launch of its own UK digital bank, possibly under its Chase brand, which is little-known in the UK. A Starling takeover would give JP Morgan both a recognised and established brand along with 1.9m UK customers.
Lloyds, meanwhile, is reportedly interested in Starling from a technology point of view, with The Times reporting that Starling has recently opened a “data room” as part of an upcoming £200m funding round.
For the month of October Starling Bank turned an operating profit of £800,000, representing £10.1m on an annualised basis, on an operating income of £9m.
The figures have been buoyed by interest income from Starling’s strong growth in lending, particularly from government-backed lending schemes.
When asked about the JP Morgan and Lloyds a spokesperson for Starling told AltFi: “Anne has always said she will never sell to a big bank. An IPO is still in our sights.”
source: Anne Boden/Starling Bank.