ZA Bank, Hong Kong’s first and largest digital bank, has reached a significant milestone by becoming the city’s first digital bank to declare monthly net profitability, after just four years since its launch.
This accomplishment underscores ZA Bank's robust growth and positions Hong Kong at the forefront of digital banking.
Cementing its Position as Hong Kong’s Digital Banking Leader
Since its inception in 2020, ZA Bank has solidified its reputation as Hong Kong’s first fully digital bank, redefining the financial landscape with its comprehensive suite of banking, insurance, and investment services. Building on this strong foundation, the bank has continued to expand its offerings, including fund and US stock trading capabilities, as well as tailored business banking solutions for local startups and SMEs. In a pioneering move last year, the bank also extended its services to Web3 enterprises, addressing a gap overlooked by traditional banks. This initiative further solidifies ZA Bank's position as an innovator in digital banking.
Growing with Profitability and Scale
ZA Bank’s relentless commitment to customer-centric solutions has propelled its growth and profitability. ZA Bank is now trusted by over 800,000 users, representing 13% of Hong Kong's bankable population2 with a 25% penetration among Gen Z consumers3. This remarkable growth rate has outpaced that of many other mid-size retail banks in the city’s history, reflecting the public’s growing trust in ZA Bank’s innovative, secure, and user-friendly digital banking experiences.
Ronald Iu, CEO of ZA Bank, said, “Achieving monthly profitability in just four years is a testament to the strength and sustainability of Hong Kong’s digital banking model. While many of our global peers took six years4 or more to reach this milestone, ZA Bank’s rapid progress underscores the effectiveness of our strategy and the trust we've built with our users. What’s particularly noteworthy is that our growth and profitability have been entirely organic, driven by genuine market demand and the value we provide to our users. This achievement not only validates our approach but also sets a new benchmark for the digital banking industry in Hong Kong and beyond.”
Financially, ZA Bank’s 2024 interim results showcase its strong performance. The bank’s net interest margin has increased from 1.87% in the same period last year to 2.21%, outperforming the industry average. Its net revenue has reached HKD 255 million, representing a 46% year-on-year growth - a testament to the sustainability of ZA Bank's diversified business model.
Looking Ahead
“ZA Bank’s mission has always been to offer banking products that are not just cheaper and faster, but fundamentally better than traditional alternatives,” Iu added. “This commitment to innovation and value creation has driven our success and will continue to guide our path forward. We invite all Hong Kong users to join us on this exciting journey and experience firsthand how ZA Bank is making finance more accessible and efficient.”