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Wednesday, October 16, 2019

News

Monzo reports £47.2m post-tax loss

Sam Monk | 14:00 Friday 28th June 2019

Monzo recorded a post-tax loss of £47.2m for the year to February 2019, according to its latest annual report.

The digital bank had recorded a post-tax loss of £30.5m in the previous year.

However, Monzo has seen customer deposits increase by £390.5m to £461.8m (February 2018: £71.3m).

The digital bank also saw 1.01 million new customers join, giving it a total of 1.6 million customers (February 2018: 590,000).

“We’ve grown revenue considerably: we’ve just crossed £40m of annual run-rate revenue (based on May 2019 revenue), but there’s still plenty of work to do to get to profitability,” said Tom Blomfield, chief executive officer at Monzo.

“Around 30% of active users deposit at least £1,000 per month (our definition of ‘salaried’), up from 13% a year ago.”

He added: “Our total cost to run an account is also an order of magnitude cheaper than high street banks.

“Engagement, retention and customer service remain industry leading.

“We still need to make more revenue to become profitable as a business, but we’re showing good progress on that front.”

Monzo recently raised £113m of new equity capital, which increased its valuation to over £2bn.

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