N26 Achieved Profitability for the First Time in Q3 2024, Surpassing €10 Billion in Customer Deposits

N26, an online bank of German origin created in 2013, has just revealed for the first time its profitable results for its Q3 2024 with a net operating income of €2.8 million. At the same time, N26 sees its revenues grow by 40% in 2024, to reach €440 million. N26 announces that it will exceed 200,000 new monthly customers. N26 plans to reach 4.8 million customers with relevant income by the end of 2024 (i.e. approximately +13.5% compared to 2023 – 4.2 million).

“2024 marks a return to strong growth for N26, combined with our ability to now offer the core banking products and services our European customers need every day to finance their lives. Over the last quarter, we have steadily accelerated our growth engine, generating overall profitability for the first time in our history and record levels of customer activity. We will continue tomorrow to conquer all the growth potential that is still ahead of us,” said Valentin Stalf, co-founder and CEO of N26.

N26 bank has been able to effectively support the development of its business

“Our first quarterly profit underlines our commitment to building profitable and sustainable growth. Over the past few years, we have focused on consolidating profitable customer relationships, while maintaining rigorous operational management and costs. This now allows us to double our growth momentum while maintaining the same discipline on our expenses,” said Arnd Schwierholz, Administrative and Financial Director of N26.

In 2024, N26 launched various innovative products to expand the range of its banking offering: spending, savings, investment and credit. Today, N26 customers in all 24 European markets can build their wealth by investing in stocks/ETFs or buying cryptocurrencies. They have the opportunity to build up savings thanks to N26 interest-bearing accounts and benefit from competitive interest rates, paid month by month.

Finally, thanks to the joint account, they are able to better manage their life projects with their partners. Thanks to N26 technology, all of these banking services are available in a single application, allowing them smooth and secure management that brings them autonomy and comfort on a daily basis.

With all these innovations, N26 bank has been able to effectively support the development of its business. Thus, the annual transaction volume of N26 customers will increase by 23% in 2024 to reach €140 billion (versus €113.9 billion in 2023, i.e. +16% compared to 2022). On average, the 4.4 million customers with relevant income carry out a monthly volume of €2,400 in transactions with their everyday bank (i.e. approximately €29,000 over the entire 2024 financial year).

To continue to establish the increase in revenue per customer, a source of profitability and revenue growth, N26 will pursue its strategy of investment and product innovation in 2025. Building on the excellent results of its business offers for self-employed entrepreneurs, N26 will also begin offering digital banking services to businesses in the coming year. Customers can already register on a waiting list.

The record level of N26 customer deposits is finally boosting treasury income for the Berlin bank.
By establishing itself as its customers’ daily bank, N26 exceeded EUR 10 billion in deposits for the first time in Q3 2024. The bank is taking advantage of this development to increase its treasury activities. Interest income will thus represent 50% of its revenues in 2024 (versus 40% in 2023).

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(Featured image by Denise Chan via Unsplash)

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First published in Finyear. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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