N26 records profit for the first time and plans company accounts

The Berlin-based neobank N26 has one for the first time in its history Quarterly profit recorded. From July to September of the current year, an operational increase of 2.8 million euros can be achieved.

For the year as a whole, the two Viennese expect more than ten years ago Valentin Stalf and Maximilian Tayenthal founded smartphone bank, which is more than Europe-wide 4 million customers counts, an operational one Minus of 20 million euros. Last year the minus was still 78.3 million euros.

Jump in sales

Sales are expected to increase compared to the previous year 40 percent on 440 million euros climb. In the next few years we are moving towards the first billion in sales, said N26 CEO Stalf when presenting the figures on Tuesday in Berlin.

Around half of sales come from this interest income. The majority of this comes from the investment of customer money, but an increasing share also comes from proceeds from the lending business. The rest comes from fees and commission income. One in three customers has a paid account, the company says.

The total number of customer deposits rose for the first time this year 10 billion euros. The transaction volume on the platform has also increased. It should be in the current year 140 billion euros be.

Strong customer growth

After the German financial institution Bafin lifted a growth restriction imposed in June 2021 due to deficiencies in money laundering and combating fraud, more than is currently being recorded 200,000 new registrations monthly, said N26 CEO Stalf.

Such growth restrictions are still in place in Italy. However, they are working closely with the authorities and expect it to expire soon, they said. In recent years there have been around… 100 million euros invested in combating fraud, said CO-CEO Thayental. Artificial intelligence plays a central role in this.

Entry into new business areas

The neobank wants to further expand its business areas. Traditional banking is increasingly being targeted. You want to do the same next year Accounts for business customers offer. They should start gradually in the first two quarters. Registrations are already being accepted. The pricing is still being worked on, but that means we definitely want to undercut the top dogs

N26 is already successfully experimenting in the Netherlands Mortgage loans. In the next few years they will also be offered in other countries. They are also rumored Mobile plans the bank, probably to attract new customers or to bind existing ones more closely to the smartphone bank. Stalf did not want to comment on Tuesday. But promised news about this early next year.

The rest is also planned Expansion in Eastern Europeare ready to say Croatia and Czech Republic.

Trading in stocks and ETFs has been available since the beginning of the year. Cryptocurrencies have been able to be traded on the platform since 2022. They are working with the Viennese crypto company Bitpanda. Savings products are also offered. When it comes to interest rates for daily money, the aim is – depending on the respective market – not to move further than 0.5 to one percent from the key interest rates set by the ECB, said Stalf.

Investments in further growth

When it comes to forecasts for next year, people are cautious. The aim is for a result around zero, slightly positive or slightly negative. Depending on how much you put into marketing, N26 CEO Stalf said: You want the current ones Definitely maintaining growth rates.

In fact, it is operationally positive. An accounting measure in the current fourth quarter is responsible for the expected negative annual result for this year. Specifically, this involves the sale of low-interest investments with a high level of equity commitment. This also eliminates hidden losses, said CFO Arnd Schwierholz.

In Germany, Spain, France but also Austria we see ourselves as the market leader in digital banks. Compared to competitors, such as the British Revolutyou want to score points with stronger local roots. For example, with assistance with paying taxes or local IBANS, which are not offered in Austria.

IPO “in a few years at the earliest”

N26 has so far more than 1,8 Mrd. Dollar received from investors. In the most recent financing round in 2021, the company was included 9 Mrd. Dollar evaluated.

There has been speculation about an IPO for the digital bank for a long time. We are preparing for it, says CEO Stalf. But that’s not expected soon, says CEO Stalf: We won’t be ready for a few years at the earliest.