Digital-only Discovery Bank reports R990m loss

Admire Moyo
By Admire Moyo, ITWeb's news editor.
Johannesburg, 07 Sept 2022

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%.”