Press Release Air Bank: Getting closer to our target of generating a profit in 2015
When we launched the bank in November 2011 we said we wanted to start generating a profit in the fourth year, i.e. in 2015. The first year’s loss was only half that which had been expected. Last year brought us much closer to our target.
When we decided to build Air Bank as a start-up project, we knew two things for certain: First, we could create a no-nonsense bank which you, our customers, would like. Secondly, it would be financially challenging for us, because the initial costs of building such a bank are high and it takes several years before the investment begins to pay off.
With this in mind, we focused on building and operating Air Bank as efficiently as possible. This strategy has proved successful. A traditional big bank spends approximately 15 billion crowns on its overheads, but we spent just a fraction of this amount last year: 745 million crowns. Thanks to the simplicity of our operations, we will continue to ensure that costs remain as low in the future. Our earnings, on the other hand, will gradually grow along with the number of our customers and how much you use our services.
2012 showed that we could indeed be successful without collecting absurd fees. Thanks to strong business results, certain advantageous investments and cost savings, we generated a smaller loss than expected in the first year: 323 million crowns instead of the planned 793 million. Thus we made a huge step towards our target of being in profit in 2015.
Our loss could be even smaller in 2013. We owe much of this success to you, our customers. There are already almost 125,000 of you – a number we didn’t expect to reach until the autumn this year. Almost half of you use us as your main bank, and that number keeps increasing. Contactless cards are comfortable to use and you often use them to pay even small amounts in shops. And many of you have shown that you trust us when seeking the best loan on the market.
Thanks! We will continue to build a bank you can like. We began to pay interest on your current account in April. We have removed or reduced certain fees and made it possible to collect cash from the terminals of the Sazka betting company. And our innovation efforts will certainly continue.