The Monzo annual results highlight a lengthy list of positives notwithstanding an entirely predictable increased loss.

For the 12 months to end February 2019 Monzo reports a loss of £47.2m. This compares to a loss of £30.6m for the year ago period.

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At the same time, customer numbers have increased by just over 1 million to 1.6 million from 590,000.

Accordingly. Monzo losses per customer are down from £52 per year to just below £30 per year.

Monzo annual results: highlights include:

  • Customer deposits rise from £71m to £462m at the end of February 2019;
  • Net promoter score rises by 10 percentage points to +80;
  • Around 30% of active users deposit at least £1,000 per month up from 13% a
    year ago;
  • Total assets increase from £140m to £614m, and
  • Lending is up from a nominal £0.2m to £19.2m.

Tom Blomfield, Monzo CEO and founder says: “We’ve grown revenue considerably. We’ve just crossed £40m of annual run-rate revenue (based on May 2019 revenue), but there’s still plenty of work to do to get to profitability.

“Per-user contribution margin (revenue minus variable costs including expected credit losses) is a key metric.  We’ve worked to improve over the last couple of years.

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“It tells you whether each active customer using Monzo generates more incremental revenue than they create in cost. Annual per-customer contribution margin is now +£4 as at May 2019, up from -£15 a year ago, and -£65 in 2017.

“The longer customers are with us, the more profitable they become, and salaried users contribute +£30. This is mainly driven by the money we make when people use their Monzo cards.”

Monzo annual results: less positive metrics

Net interest income remains modest. Moreover, Monzo’s net fee and commission income growth remains a work in progress. It is up from £1.4m to £6.6m in February 2019.

Monzo retains a conservative risk strategy and has yet to grow its lending book beyond overdrafts.

The bank has enjoyed impressive organic user growth from word of mouth recommendations and social media marketing.

But by Monzo’s own admission, that takes it only so far. It says that only around 43% of the UK market are aware of Monzo. To increase this figure, Monzo is ramping up paid marketing to open up growth from potential new customers. That will inevitably result in an increase in operating expenses for the current fiscal year.

Release of the Monzo annual results coincides with confirmation that it is launching in the US.

A Monzo US website is already up and running.