Dutch challenger Bunq becomes first EU neobank to report a quarterly profit
Netherlands-based Bunq has become the first neobank in the European Union to report a quarterly profit after a decade of operations.
Bunq turns a profit after a decade of operations
Bunq, which is the second largest neobank in the EU, reported a pre-tax profit of €2.3 million over Q4 2022.
The digital challenger claims in Q4 2022 its net-fee income grew 37% compared to Q4 2021. User deposits also climbed by 64%, reaching €1.8 billion.
At the end of 2021, Bunq broke even for the first time. Since then, it says it has been on “a steady path to profitability”, investing its operating profit in innovation, product development and international expansion.
The firm intends to use the bumper profits to further fuel its growth as it looks to build the “first global neobank” for digital nomads and “location-independent” individuals and businesses.
Bunq CEO Ali Niknam says the firm has aligned its “user-centred philosophy with financial success”.
In October last year, the challenger won an appeal against the Dutch Central Bank (DNB) regarding the use of modern technology such as AI and machine learning for anti-money laundering (AML) checks.
In May, the challenger acquired Belgian fintech Tricount, a group expense management app that allows users to register and balance their expenses during activities with friends.
