Annual Report 2020

Hey Community :wave:

You can now read our Annual Report for 2020, along with our new CEO TS’s review of the last financial year.

We’ll be having some input from our Finance team over the next couple of days to answer as many questions as we can :smiley:


So much for being conservative with their lending



I’m hoping someone can summarise this (fairly!!) for some of us who don’t know the ins and outs of this type of report.


Maybe it’s time for us to move our money out of Monzo. Their poor performance and lousy engagement was evident long before Coronavirus.


Only a £114m loss this year!

Monzo have a strong liquidity position so I’m not too worried. Even if something went wrong, they would be bought and accounts are protected anyway. You can see why there was restructuring earlier this year a little more clearly now though.


Go for it if that’s what works for you. There’s no risk to anyone’s money and individuals moving in or out will make little difference.

Also, are you talking about a joint account? (Otherwise it feels like you’re trying to push-start a bandwagon which is never a good look for a first post.)


“Despite initial launch delays because of COVID-19, we launched Monzo Plus in July 2020. We plan to roll out another market leading premium banking product in FY2021. These products will help people get more from their Monzo accounts, both at home and when they travel. “

So sounds like the premium version of a Monzo plus which will include travel insurance coming next year :face_with_monocle:


A £20.3 million loss is the result of conservative lending.


The monzo report only goes up to the end of February


FY2021 started in February - they’re saying it’ll come before next February


I understand how startups work and losses are expected, but as revenue grows it should hopefully equalise at some point. Having £114mln loss for a year means if Monzo was to even break even they’d have to make a profit of £114mln which is extremely hard given that as it grows its expenses are likely to go up again. I wonder what loss will Revolut and Starling post for this year, as it seems pretty high.

1 Like

To break even, Monzo wouldn’t have to make a profit. They’d have to have revenue = costs

Yeah thats what I meant, been a long day. Point is not lossing so much is hard


While this is true - Unfortunately the way in which borrowing losses work from an accounting point of view is that we have to book at least the next one year of expected credit losses up front. This means that covid has impacted our borrowing losses even though covid happened after our financial year end.

I’d explain further but take it from me, as someone who works in our borrowing team, the whole accounting side of borrowing losses is quite complex! :confused: If you want to learn more you can read up on “IFRS 9 expected credit losses.” (you’ve got a lot of fun reading ahead of you :wink:)


I’d love to but I’ve got the dishes to do :eyes:

Thanks :grin:


Page 44 - it says the board approved the launch of an ISA. Have I missed something being released?

1 Like

Hi @TheoGibson :wave:

Whilst the impairment charge obviously reflects expected losses for a full 12 months in the future, a £20m hit against against a year end loan book of £145m is absolutely horrific (14% default).

This also exceeds the £18.4m interest income from loans and advances to customers so had Monzo not lent a penny, arguably they’d be in a better position.

Would I be right that this is one of the reasons Monzo have really tightened their lending criteria?

Are these rates of losses something that was foreseen and an accepted risk or has this come as a surprise?


Just saying, but travel may not go back to normal before Feb next year. It’s pretty clear from the current farce that we are going to have to wait for a vaccine. It’s going to take a number of years for the travel industry to recovery, if it even can.

1 Like

These are my takeaways from the report:

  • Average customer deposits up from £289 to £357. An improvement, but probably not something that would generate huge amounts of income given the low interest rates.
  • Average annual spend per customer up from £2,250 to £2,795. I suspect probably quite good compared to a lot of fintechs, but it would be interesting to know how much the average spend is from active users.
  • Going concern being subject to material uncertainties is a bit disappointing. Perhaps that’s to be expected given the losses and possibly requirement for further funding before profits are made?
  • Now making £17.23 per customer revenue compared to £12.31 last year. Not bad, but thought it would be higher given the additional time to develop and rollout loans and overdrafts (which anecdotally seem to be retrenching now?).