Product innovation generates revenue

The bank expanded its product range in 2024 to include stock trading through N26 Stocks, cryptocurrency trading through N26 Crypto (a service that allows users to buy and sell digital assets) and N26 Joint Accounts for shared finances.

These additions have contributed to an estimated 23% increase in annual transaction volume to €140 billion in 2024.

Customer deposits exceeded EUR 10 billion for the first time in Q3 2024. As a licensed bank with a full European banking license, N26 uses these deposits for treasury and retail lending operations. Interest income is expected to contribute 50% of total revenue in 2024, up from 40% in 2023.

The path to profitability

Despite the quarterly profit, N26 projects a full-year net operating loss of around €20m for 2024 due to a one-off balance sheet optimization in Q4. This is a significant improvement from the net operating loss of €78.3 million in 2023 and the loss of €169.3 million in 2022.

Word of mouth continues to drive growth, accounting for 73% of new customer acquisitions in 2024, helping to keep customer acquisition costs low. Each revenue relevant customer is estimated to transact an average of €29,000 through N26 in 2024.

The company focused on strengthening compliance and financial crime prevention infrastructure, following significant investments in 2022.

This infrastructure development, combined with the removal of regulatory restrictions, has allowed N26 to resume its growth trajectory while maintaining operational efficiency.

N26 plans to expand its investment offerings and launch digital corporate banking services in 2025, with a waiting list already open for potential business customers. The move to business banking represents a strategic expansion beyond the current focus of retail banking.

“We are delighted to once again be able to meet the significant demand for our fully digital banking products,” says Valentin Stalf, co-founder and CEO of N26. “In the last quarter, we consciously accelerated our growth engine, delivering profitability for the first time in the bank’s history and record levels of customer activity.”