Losses at digital bank Monzo ballooned to £114m, as the bank warned that the financial strain of the Covid-19 crisis had put the company’s future at risk.
The London-based bank said its revenues had been “significantly impacted by the Covid-19 pandemic” and its economic impact. Along with stricter regulations meant to combat financial crime, it could result in lower customer numbers, higher costs and lower revenue.
Monzo’s annual report said:
This increases the risk that the group will not be able to execute its business plan, which could adversely impact its ability to generate a profit or raise sufficient capital to meet future regulatory capital requirements.
Due to these obstacles, the directors recognise there are material uncertainties that cast significant doubt upon the group’s ability to continue as a going concern.
It came as the bank, known for its hot coral pink cards, reported an annual loss of £114m for the year to February 2020. That is more than double the £50m loss the bank logged a year earlier.