In the first six months of this year, ZA Bank has halved its losses. It also became the first virtual lender in Hong Kong to record a monthly profit.
In the first half of 2024, ZA Bank recorded a net loss of HK$109 million ($14 million), according to the virtual bank’s financial results. This is nearly half of the $200 million in net loss recorded in the same period in 2023.
Net revenue rose 46 percent driven by net interest income of HK$208 million as well as net fee and commission income of $49 million. Operating expenses also fell to HK$302 million.
«In the face of a challenging macro-environment, the strong set of results in 1H24 is a testament to our strategic focus on quality growth and operational efficiency,» said ZA Bank CEO Ronald Iu. «The continued efforts to diversify revenue streams and enhance user trust have successfully delivered an entirely organic growth for the Bank.»
Key Milestone
In July, ZA Bank broke ground by becoming the city’s first digital lender to achieve a monthly net profit.
«Our first monthly profit also underscores the sustainability and resilience of the tech-driven digital-banking model in Hong Kong, keeping us on track towards sustainable profitability,» Iu added.
As of end-2023, no licensed virtual bank in Hong Kong has ever achieved profitability, according to a review by the local regulator which noted that there was no strong justification to add more players.
