Monzo posts a loss for the 12 months to end February of £116.3m ($144.1m), slightly down from the prior fiscal (£119m).

But Monzo reports that it is now profitable, achieving monthly profitability in January and February.

Moreover, it says that it is on track to reach full-year profitability by the end of 2024.

Positive metrics for the past fiscal include an 88% y-o-y rise in net operating income to £214.5m.

The bank is boosted by a spike in lending activity and higher margins.

Specifically, total loans almost triple y-o-y to £759.7m, with net interest income rising by 382% y-o-y to £164.2m.

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Other positive metrics include a rise in non-interest income. Subscription-based accounts now total 350,000 customers.

Meantime, total customer numbers rise to 7.4 million. Total deposits are ahead by 34% y-o-y to £6bn.

Monzo less positive metrics: BNPL-related provisions

Total expenses rise by 42% y-o-y to £330.9m. This is driven by an increase in staffing. Monzo staff costs rise by more than one-third y-o-y to £175.3m. The firm now employs 2,432 staff, up from 1,879 a year ago.

But it is the bank’s drive into buy-now-pay-later that results in a sharp rise for provisions against bad loans. They rise seven-fold from £14m to £101m.

Monzo Flex, the bank’s BNPL offering, launched in September 2021. The BNPL offering now constitutes more than 20% of its loan book with lending of £169.3m.

Monzo CEO TS Anil said: “Our achievements have come against a backdrop of external uncertainty. Yet again we’ve proven the ability to stay focused on our customers and our mission.

“As the UK population navigates the pressures of the cost-of-living crisis and an uncertain macroeconomic environment, our mission to make money work for everyone could not be more relevant.

By design, our products and features have always empowered customers. They give them visibility and control over every penny they spend, borrow and save. We’ve heard from so many customers about the real difference we’ve made to them as times have gotten tougher.”