N26 reports €213M in net loss, integrates stock and ETF

abdelaziz Fathi

European digital bank N26 has shared its strategic roadmap for the next few years, underlining both its growth trajectory and financial targets. The announcement included key financial results for 2022 and projections for the coming years.


N26’s strategy hinges on “sustainable growth,” with a focus on ramping up “customer engagement” and usage of its diverse financial products. After introducing N26 Crypto in 2022 and launching new Instant Savings Accounts, the company is now gearing up to expand its investment offerings. In collaboration with Upvest, N26 is set to integrate stock and ETF trading into its app by the first half of 2024, expanding its financial services portfolio.

The company reported a mild increase in revenue-relevant customers in 2022, growing by 300,000 to a total of 4 million, up 8% from the previous year. For 2023, N26 anticipates a mid-single-digit percentage rise, with the company forecasting over 300 million euros, a jump of more than 30% year-on-year.

Transaction volumes through N26 also saw a notable uptick in 2022, surpassing 97 billion euros, a 22% increase from the previous year. The challenger bank expects this trend to continue in 2023, projecting transaction volumes to exceed 110 billion euros.

On the financial front, N26’s gross profit reached 153.8 million euros in 2022, and it’s aiming for over 220 million euros in 2023, with an expected gross profit margin exceeding 70%. Customer deposit growth has been steady, with N26 managing 7.2 billion euros in deposits at the end of 2022 and projecting around 8 billion euros by the end of 2023. This deposit growth, combined with an advantageous interest environment, is expected to contribute to the company’s revenue.

Despite these positive indicators, N26’s net loss swelled by 24% in the year just ended, coming in at 213.4 million euros. This was largely attributed to investments in infrastructure and compliance measures. However, the company forecasts its operating income for 2023 to take a step forward and expects to more than halve its net loss to 100 million euros.

N26’s roadmap culminates in an expectation of profitability by the second half of 2024, riding on the back of customer growth and improved profitability per customer.

BaFin fined the business €4.25 million in 2021 for its lax money laundering controls and placed a temporary limit on the number of new customers the bank could onboard each month, capping it at 50,000 new customers. In a rare move, the regulator also appointed a special supervisor to monitor the digital lender.

The bank said that it had already addressed the problems behind the BaFin fine. N26, which is one of Europe’s most highly valued fintechs, also stated that it heavily invested in anti-money laundering measures and is fully committed to complying with all aspects of BaFin’s order as quickly as possible. This came despite downsizing its workforce by cutting 71 jobs, roughly four percent of its headcount, due to a challenging macro-economic business climate.

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