Atom Bank has confirmed a £40 million funding round at 60p a share, halving the bank’s valuation.

The equity raise is just under half the price at which investors acquired shares in 2019, when Atom made £50 million.

The round will be led by Toscafund Asset Management and BBVA.

The bank hasn’t yet reached profitability but expects figures to show that it achieved more than 100bps of Net Interest Margin (NIM) at the end of last month.

The retail bank forecasts that it will have tripled SME lending to over £700 million over the past 12 months.

Atom took over £400m of mortgage applications in the second half of the financial year 2020/21.

“On the back of our best year ever and with really strong momentum baked into the business, this raise will accelerate our progress even further during 2021, and prepare us for the next stage in our growth and development prior to IPO, which we anticipate taking place in the next two years or so,” said Atom chief executive, Mark Mullen.

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