BankTech Bulletin #31: Monzo: Bigger, broader and expanding overseas

Research evidence excerpt

BankTech Bulletin #31: Monzo: Bigger, broader and expanding overseas

Global Research

18 June 2026ab

BankTech Bulletin #31 Equities

Europe including UKMonzo: Bigger, broader and expanding overseas

Banks

Jason Napier, CFA

The BankTech Bulletin Analyst

The BankTech Bulletin series profiles businesses, events and factors which signpost the jason.napier@ubs.com

medium-term outlook for banking. Past editions examined platform deposits, digital +44-20-7568 5037

bank licences, loyalty-driven customer models, next gen IT, CBDCs and a host of Sanjena Dadawala

newtech competitors like Chase, Revolut, OakNorth, and Starling. Here we look at the Analyst

Monzo Bank, which recently released its FY26 annual report. sanjena.dadawala@ubs.com

+44-20-7567 0753

Strong franchise growth, lower operating leverage on business investment Justin Forsythe, CPA

Monzo reported FY26 stated PBT of £87m, +44% YoY, with adjusted pre-tax profit, ex Analyst

regulatory provisions and restructuring costs, of £114m flat YoY. We estimate an justin.forsythe@ubs.com

+44-20-7567 4191

adjusted ROTE of 7% - below the 19% UK fintech peer group average, a function of

higher cost/income and impairment ratios (74% and 9.1% respectively) - down from

8.2% in the prior year. The franchise grew strongly with loans and deposits up 42% and

55% YoY and customers up 25% YoY to 15.2m. NII rose 37% YoY for 35% more

income partially offset by 42% opex growth, for 19% more pre-provision profit, with

33% more impairments seeing adj. PBT flat YoY.

Investment and profit momentum...

Part of the increase in costs is due to platform and product development and the control

environment. Licenced and launched in Ireland. Targeting Spain next. In the UK

launching ETFs for investors, home insurance, and a tax filing tool for sole traders,