ZA narrows net loss, sees 46% net revenue rise in H1 

Total assets and net interest margin grew during the first half of 2024.

ZA Bank reported a net revenue increase of 46% in the first six months of 2024.

Hong Kong’s oldest virtual bank saw its net interest income jump 84% year-on-year to over HK$207m during the period, its latest interim results report showed.

Net fee and commission income grew 38% YoY to over HK$48m. 

Total assets grew 43% to nearly HK$20b in the first six months of 2024. Customer deposits grew 70% YoY to HK$16.8b, 44% higher than a year earlier, on the back of new savings products and its walk to earn programme.

Net interest margin rose to 2.21% compared to 1.87% in H1 2023– well above Hong Kong retail banks’ average of 1.51%.

Whilst still loss-making, ZA Bank said that it has narrowed its net loss margin by 71.7 percentage points, with net loss decreasing by 45% or nearly HK$100m compared to H1 2023.

ZA Bank reported its first monthly net profit in July 2024.

As of end-June, the bank has over 800,000 retail customers, serving over 13% of Hong Kong’s bankable population.

On the business banking side, ZA Bank said that it recorded a 60% growth in new account opening in H1.