N26 made a loss of around 150 million euros in 2020

In 2019, losses were still 30.5% higher. Losses were also incurred in the USA.

Neobank N26 reported a net loss of 150.7 million euros for 2020. The company had previously reported a loss of 110 million euros. However, this only related to the central EU business. In addition, there were operating losses of 40.7 million euros from the rest of the world, including Brazil, the USA and the UK, where N26 was active at the time.

In 2019, the losses had even amounted to EUR 216.9 million. Losses have therefore fallen by 30.5 percent. At that time, the company had invested a lot of money in its US and UK business. N26 is now no longer active in either country, as Startbase reported.

One ray of hope: The company's gross revenue rose by 22 percent to 112.4 million euros in the 2020 financial year. In the previous year, this figure was 92.3 million euros. N26 also increased its net interest and commission income. The company was also able to reduce its administrative costs. These include marketing costs, personnel costs and other administrative expenses. These fell by 15 percent to 206.3 million euros. In the previous year, they amounted to 244.7 million euros.

And what's next? N26 intends to announce its results for the 2021 financial year in the first half of 2022. The company explains that the trend towards digital banking has further intensified in 2020 due to the pandemic. As N26 focused on increasing product usage and customer activity in 2021, transaction volumes increased.

However, N26 recently had to contend with a number of problems: last year, the German Federal Financial Supervisory Authority (BaFin) ordered the neobank to accept only 50,000 new customers per month (Startbase reported). In January, various media reported that more than 50 customers in France apparently wanted to take legal action against N26. Their accusation: the bank is said to have arbitrarily blocked their money when they needed it.