N26 made a loss of around 150 million euros in 2020

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

Neobank N26 reported a net loss of 150.7 million euros for 2020. Previously, the company had spoken of a loss of 110 million euros. However, these related only to the central EU business. In addition, there were operating losses of €40.7 million from the rest of the world, including Brazil, the U.S. and the U.K., where N26 was active at the time.

In 2019, the losses had even amounted to 216.9 million euros. Thus, the losses have decreased by 30.5 percent. At the time, the company had put a lot of money into its U.S. and U.K. businesses. In the meantime, N26 is no longer active in either country, as Startbase reported.

One bright spot: The company's gross revenues rose 22 percent to 112.4 million euros in fiscal 2020. In the previous year, these had stood at 92.3 million euros. N26 also increased its interest and commission income. In addition, the company was able to cut 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 had amounted to 244.7 million euros.

And what's next? N26 plans to announce its fiscal 2021 results before the end of the first half of 2022. The company explains that the trend toward digital banking has further strengthened in 2020 as a result of the pandemic. As N26 focused on increasing product usage and customer activity in 2021, it said transaction volumes increased.

Most recently, however, N26 has had to contend with a number of issues, with the German Federal Financial Supervisory Authority (BaFin) ordering Neobank to accept only 50,000 new customers per month last year (Startbase reported). In January, various media reported that apparently more than 50 customers in France want to file a lawsuit against N26. Their accusation: the bank allegedly blocked money from them completely arbitrarily when they needed it.