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Bunq reports first quarterly profit

Dutch neobank Bunq has logged its first quarterly profit

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Bunq reports first quarterly profit

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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.

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