18 July 2018
Visit www.avoka.com

Egg breaks into profit

13 December 2001  |  3247 views  |  0 Egg breaks into profit

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  |  4982 views  |  0 comments
Young and wealthy turn to Internet for investment research

Young and wealthy turn to Internet for investment research

21 November 2001  |  3042 views  |  0 comments
Bricks not clicks say consumers

Bricks not clicks say consumers

14 November 2001  |  3426 views  |  0 comments
Bank of Ireland retreats from Internet-only model

Bank of Ireland retreats from Internet-only model

24 October 2001  |  3605 views  |  0 comments
Egg on track to break even

Egg on track to break even

17 October 2001  |  2912 views  |  0 comments
Egg moves to Windows XP

Egg moves to Windows XP

17 October 2001  |  3024 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit http://go.jumio.com/finextraAdVisit info.nice.comVisit https://secure.vasco.com

Top topics

Most viewed Most shared
Metro Bank opens developer portalMetro Bank opens developer portal
9516 views comments | 5 tweets | 14 linkedin
Anything Visa can do...Mastercard takes time outAnything Visa can do...Mastercard takes ti...
8906 views comments | 6 tweets | 14 linkedin
Citi to streamline corporate receivables with HighRadiusCiti to streamline corporate receivables w...
7850 views comments | 1 tweets | 5 linkedin
Mastercard enlists Worldpay to push Vocalink's Pay by Bank appMastercard enlists Worldpay to push Vocali...
7788 views 19 comments | 14 tweets | 29 linkedin
Banks stand to reap $512 billion revenue boost from 'intelligent automation'Banks stand to reap $512 billion revenue b...
7661 views comments | 21 tweets | 30 linkedin

Featured job

to GBP £120K base, double ote, benefits
Frankfurt, Germany

Find your next job