We’ve published our 2019 Annual Report

You can now read our Annual Report for 2019, along with our CEO Tom’s review of the last financial year.

Later today, some folks from our Finance team will be around to answer any questions you’ve got. So let us know below! :slight_smile:


Headline detail, overall finances wise

The loss for the year after taxation was £47.2m
(compared to a loss of £30.5m in 2018). This reflects the significant investment we’ve put into building more products and features that:

  1. Scale to meet the needs of our customers
  2. Generate revenue for Monzo

One bit I’m quite interested in, is this:

  1. Loans and advances to customers consist of approved overdrafts provided to customers of £18.5m (2018: £0.1m), overdrawn balances on current accounts of £0.1m (2018: £0.1m), and loans of £0.6m (2018: nil).

Gross Amounts Receivable from Customers
Overdrafts -
2019 = 18,570,000
2018 = 170,000

Is the above figure of £18.5 million the available overdraft or credit that has actually been taken out? With the new FCA Guidance on Overdraft Charges, what do you expect will happen with overdraft lending? Is this something that Monzo will continue to “push” but with a lower APR?

Do you see your Credit Risk appetite being developed further as it will become “cheaper” to obtain an overdraft with an APR? I can see the FCA guidance causing a big change in the way the overdraft lending works so just wanted to pick your brains on what this would actually mean!


“The longer customers are with us, the more profitable they become, and salaried users contribute +£30 – mainly driven by the money we make when people use their Monzo cards.”

Very interesting line here about the benefit of going full Monzo for Monzo


From the first quote you put, I see the offered overdraft amount at 18.5 million, with the total overdrawn being 0.1 million. :slight_smile:

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That’s how I read it as well, but then £100,000 doesn’t seem like a large uptake if the available is £18.5 million. Other data within the report suggested different things (as I’m no where near smart enough to understand all of the Profit and Loss and other statements) so thought with the FCA stuff having just been announced it was worth throwing a question in!

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I guess it depends on the overdraft figure, and when it was taken. I wonder how many people use it more towards the end of the month vs at the start etc. :slight_smile:

100% agree worth asking! :+1:


Also strange that it hasn’t changed since 2018 - still £100,000. They’ve had more than a million customers join (I think in that time scale that was the figure) but the total amount actually overdrawn is still £100,000 - just seemed kinda weird as it is one of the more developed revenue streams!

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Yea, bit weird that the loan amount (0.6m) is higher than the overdraft amount… Maybe this (if correct) is a strong indicator that people do prefer the % interest rate vs the day-rate that Monzo offer currently.

If that’s the case, maybe we’ll see the used overdraft amount increase with the FCA changes.


Hello! :wave:

I’m going to give this a proper read this evening. But can I repeat a plea I made here to ask you to go back to how you published last year. That was completely top class :hot_coral_heart: with content as HTML as well as PDF.

(I would have more questions, but can’t read properly with PDFs until I’m at home :confused:)


I would be interested to understand if the ECL in the accounts is typical for others in the loan and overdraft lending space? ~20% seems quite high?


“The Group hasn’t made any donations or incurred any expense to any registered UK political party or other EU political organisation.”

Good. Please keep it that way.


Will definitely be reading this tonight. But on a side note: I noticed that, as a crowdfunding investor, I haven’t received any emails informing me of the latest share price or the publication of the annual report. If I remember correctly, in the previous rounds and years we got an email with the details before it was posted on Monzo’s social media accounts. Could anyone from the Monzo team maybe explain this?


Hi, only had two min flick but I read it as they have outstanding loans (overdrafts) of £18.6m, of this value a small portion £0.1m are informal/unarranged/limit exceeding overdrafts. The total amount of arranged overdrafts is on page 26 (£81m) so here we can deduce there is an overdraft usage of 23% - they’ll be keen to grow this % uptake quickly!

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Could definitely be right there - I tried to flick through again but wasn’t aware Monzo did unarranged overdrafts (although this could be from where an account is closed and goes through collections possibly?).

Just think due to the changing legislation/ regulation over overdrafts getting a bit more of an insight into how this plays into the Profit/Loss would be a good one!

Definitely agree here seeing as they will be losing the large 50p per day charge!

Yeah I would not bank on growing too much income from overdrafts… I believe soon pricing of overdrafts will have to be on a representative APR% basis as its getting confusing for the customer with so many banks pricing overdrafts differently - if so this will really show daily usage fees as VERY expensive compared to the conventional APR%.

I see Monzo short term making most of its corn from commission income on 3rd party products, effectively acting as a broker

Its less the confusing (although a big part) but the predatory pricing structures of arranged vs unarranged - due to hit shelves in April 2020 I believe so Monzo will have to change by then.

Tbh I see this as their long term business model as well - I don’t see where else (as a comparison against a legacy) they’d start getting more revenue from. Maybe plus but I suspect when the marketplace takes shape, the commission and fees will be a big gainer.

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I would not bank on growing too much income from overdrafts

  • do you not think people will use overdrafts with an APR figure ? in the same way as they do now with a daily charge , and Monzo as they grow will be allowing more customers to have overdrafts ?
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I think because the charge will decrease (as the 50p APR for smaller amounts is very high) Monzo will need to attract more customers to open and use their overdrafts just to match what they were getting before.

The biggest problem will be and still is I think the student account overdraft structure. £2,000 free overdraft for 3-6 years is a no brainer.

Monzo have been very cautious with their offering of overdrafts so far though , whether this will change :man_shrugging:

The more people offered overdrafts that then use them , the more income they get from overdrafts, albeit at a lower rate