Bunq, the second-largest Neobank in the EU, releases its first-quarter earnings.
Bunq first achieved a profit in December 2021.
Ali Niknam started the Netherlands challenger bank ten years ago.
Bunq, a Dutch challenger bank that identifies as the second-largest neobank in the territory of the European Union, has announced its first quarterly profit. In the fourth quarter of 2022, the challenger bank had a pre-tax profit of €2.3 million.
In a press release on Tuesday, Bunq said it had achieved “structural profitability,” and that the increase in earnings will support the company’s future development and expansion. The firm, which was established in 2012, just started turning a profit a few months prior in December 2021.
Moreover, Bunq revealed that between September and December 2022 and the corresponding period in 2021, its net fee income climbed by 37%. The challenger bank’s net fee revenue totaled €23.1 million in 2021.
Moreover, by the end of 2022, customer deposits at the Dutch neobank increased by 64% to €1.8 billion. By the end of 2021, deposits had increased from €813 million the year before to over €1.1 billion.
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Bunq finally turns a profit after ten years.
The “service-oriented” business strategy of Bunq has already proven successful ten years after the firm was founded, according to its founder and chief executive officer, Ali Niknam. After obtaining the first European banking licence in more than 35 years, Niknam created Bunq. Up until 2021, he was Bunq’s lone investor. Up until two years ago, he personally provided €98.7 million for the challenger bank.
The British private equity company Pollen Street Capital led a Series A investment round in July 2021 that brought €193 million to the Netherlands challenger bank. The cash, according to the business, was secured in the biggest series A investment ever for a European fintech. At the time, the transaction was valued at around €1.6 billion.