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Neobank Bunq announces first annual profit

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Jan 30, 2024
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Illustration: Sarah Grillo/Axios

The pool of profitable European neobanks is growing.

Driving the news: Last valued at $1.8 billion, Europe-focused Bunq says it gathered €53.1 million ($57.4 million) in net profits last year — its first full-year in the green.

By the numbers: Based in Amsterdam, Bunq posted total revenues and income of €42.9 million ($46.4 million) in 2022, with a loss of €10.5 million ($11.7 million).

  • Revenue rose, on an unaudited basis, to about €229.5 million ($248.5 million) in 2023, in no small part due to a jump in deposits.
  • User deposits grew from €1.8 billion in 2022 to almost €7 billion at the end of 2023. Due to higher interest from those deposits and growth in its loan volume, the company's gross interest income grew by 488% during the year, per the company.

Of note: Bunq is now planning to add more customers in the U.K, having applied for an E-Money Institution license in the U.K.

  • Profitability will also help its case in trying to win a U.S. bank charter.

Context: U.K. and European neobanks have been a step ahead of their U.S. brethren in reporting bottom lines in the green.

  • U.K.-based Starling Bank said after-tax profits grew to £142.9 million ($180 million) from £44.9 million ($57 million) for the year ending March 2023.
  • Revolut, too, has posted net profits on an annual basis. Tandem and Atom Bank, meanwhile, have reported operating profits in the green.
  • Germany's N26, however, is expected to post a net loss of €100 million ($108 million) in 2023, down 53%.
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