/retail banking

News and resources on retail banking, consumer finance and reinventing customer experience in finance.
Bunq reports first quarterly profit

Bunq reports first quarterly profit

Dutch neobank Bunq has logged its first quarterly profit

In the last quarter of 2022, bunq’s net fee income grew by 37%, compared to the last quarter of 2021, and user deposits grew by 64%, to €1.8 billion at the end of 2022.

Ali Niknam, founder and CEO of bunq, says: "I’m incredibly proud that, just a decade since our inception, bunq’s service-oriented business model has proven to be profitable. Truly aligning our user-centered philosophy with financial success, we were able to build a business that’s only successful as long as our users are happy."

Describing itself as the first global neobank for location-independent people and businesses, bunq reported break-even for the first time at the end of December 2021.

The challenger turned its first operational profit in June last year, as gross user fee income grew by 76% from €18.5 million in 2020 to €32.7 million in 2021 and the net fee income nearly doubled, reaching €23.1 million in 2021.

The growth trajectory was rewarded in December with a €193 million capital raise, which valued the previously boot-strapped business at €1.6 billion.

Niknam says the business expects to maintain profitability throughout 2023 as it invests in innovation, product development and international expansion.

Comments: (0)