13 December 2017
visit www.solutions.lexisnexis.com

Egg breaks into profit

13 December 2001  |  3191 views  |  0 Egg Card

Internet bank Egg says it has moved into profit for the first time on the back of a surge in third quarter customer acquisitions and strong revenue generation in its credit card business.

Following the slowdown in customer growth during September, Egg is boasting a highly successful Q4 with 129,300 net new customers acquired to date. Total net new customers this year now stand at 569,000, beating the 559,000 acqusitions achieved in year 2000. As of 10 December, Egg's total net customer base amounts to 1.92 million.

Egg, which reported a third quarter loss of £18.4 million pounds, says the management accounts for November showed that it had made a profit for the month, in line with its long-standing commitment to break-even by year-end 2001.

Egg identifies the credit card business as one of the key drivers of sustainable profits in the future. Cards have been making a positive contribution since 1 October 2001, says the bank, as the book is now large enough to earn sufficient revenues to cover ongoing operational, marketing and bad debt costs in addition to the costs of the up-front incentive offers on the product.

Egg's preliminary results for the year ending 31 December 2001 will be released to the London Stock Exchange on 25 February 2002. The company - Europe's largest standalone Internet bank - was floated by UK insurer Prudential in June 2000. The Pru still holds an 80% stake in the venture.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Deadheat as Halifax and Nationwide declare one million online customers

Deadheat as Halifax and Nationwide declare one million online customers

12 December 2001  |  4870 views  |  0 comments
Young and wealthy turn to Internet for investment research

Young and wealthy turn to Internet for investment research

21 November 2001  |  2986 views  |  0 comments
Bricks not clicks say consumers

Bricks not clicks say consumers

14 November 2001  |  3358 views  |  0 comments
Bank of Ireland retreats from Internet-only model

Bank of Ireland retreats from Internet-only model

24 October 2001  |  3543 views  |  0 comments
Egg on track to break even

Egg on track to break even

17 October 2001  |  2850 views  |  0 comments
Egg moves to Windows XP

Egg moves to Windows XP

17 October 2001  |  2962 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.response.ncr.comvisit www.aciworldwide.comvisit www.solutions.lexisnexis.com

Top topics

Most viewed Most shared
Saxo Bank's 'Outrageous Prediction': Bitcoin to peak at $60k next year before spectacular crashSaxo Bank's 'Outrageous Prediction': Bitco...
12161 views comments | 7 tweets | 7 linkedin
Deutsche Bank paper hails 'huge' blockchain potentialDeutsche Bank paper hails 'huge' blockchai...
9347 views comments | 16 tweets | 22 linkedin
PSD2: Laying the regulatory foundation for a new age in paymentsPSD2: Laying the regulatory foundation for...
7965 views comments | 17 tweets | 35 linkedin
Santander UK poaches Barclays innovation chief Michael HarteSantander UK poaches Barclays innovation c...
7346 views comments | 8 tweets | 17 linkedin
Alior Bank to use Open API platform and accelerator to create fintech marketplaceAlior Bank to use Open API platform and ac...
7188 views comments | 20 tweets | 11 linkedin

Featured job

Competitive
New York, NY - USA (some flexibility on location)

Find your next job