Digital bank Discovery Bank’s operating loss for the financial year was R990 million, 10% lower than the previous financial year.
This emerged today when Discovery announced its financial results for the year ended 30 June.
In a statement, Discovery says the digital-only bank continues to expand its current client base, with 470 220 clients (331 000 in the prior period) and 1 023 790 accounts (versus 649 000 in June 2021), which represents a significant milestone for the bank.
Billed as the “world’s first behavioural bank”, Discovery Bank was first announced in November 2018 and went into beta-testing phase in March 2019, when it touted its new offering as revolutionising banking clients’ behaviour.
According to the bank, retail deposits grew by 30% to R10.6 billion and advances grew 14% to R4.3 billion.
It adds that new business volumes continued to be strong, achieving more than 800 average daily new-to-bank sales (versus 500 in June 2021), showing significant progress toward a medium-term target of 1 000 sales per day and 1 000 000 clients by 2026.
“The bank has also continued to attract high-quality clients, resulting in high levels of average non-interest revenue and a low credit loss ratio of 1.56%.”
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