Bunq has achieved profitability for the second year, bolstering plans for an international expansion as it moves to secure a broker-dealer license in the US.
Founded in 2012 by CEO Ali Niknam, Dutch neobank Bunq has 17m users across Europe with more than €8bn in deposits.
The company posted €85.3m in profits for 2024, according to financial results released Tuesday — a 65% jump from the €51.6 million reported by the bank in 2023. Net operating income was €245.3m — a 52% increase year-on-year — as Bunq’s income from interest-earning activities increased from €196m to €352m.
Bunq joins an exclusive circle of Europe’s neobanks, which include Starling and SME-focused OakNorth, which have also enjoyed consecutive years in the green.
Bunq’s American dream
Bunq plans to reinvest the profits to finance its international expansion plans. The company has applied for a broker-dealer licence in the US, which would allow it to offer debit cards and investments in stocks and ETFs (exchange-traded funds). Users would also be able to take advantage of deposit protection offered by the US’ FDIC of up to $250k.
“Our users live an international lifestyle, and they need a bank that’s global too. As we grow, it’s clear how much they need a bank that works for them, wherever life takes them”, says Niknam. “That’s why we’re fast-tracking our entry into the US. Today’s step brings us closer to making that vision a reality.”
This isn’t Bunq’s first attempt to crack America. Last February, the company withdrew an application for a US banking permit, citing issues between its Dutch regulator and US authorities. Bunq tells Sifted it expects to hear back on its new application by the fourth quarter of this year.
Bunq has also aimed to secure regulatory authorisation to re-enter the UK market after pulling out of the country in 2020. The fintech applied for an e-money licence, a regulatory authorisation that allows companies to operate as payment service providers, in 2023.
Bunq declined to give an update on the UK regulatory ruling but said they would have “some exciting updates” to share in the coming months.
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