WeLab Bank achieves first breakeven in Dec 2024

WeLab Bank credited it to its expanded loan book.

WeLab Bank achieved its first breakeven in December 2024— four years after its establishment.

On average, most digital challenger banks typically take 5-7 years to break even, an expert from Boston Consulting Group (BCG) said.

In a press release, the Hong Kong-based digital bank credited the accomplishment to its expanded loan book, highlighting its reduced lending costs.

Online lending platform WeLend recently became a wholly-owned subsidiary of WeLab Bank following a corporate reorganization in 2024.

This has enabled WeLab Bank to reportedly become a top 3 lender in the market in terms of new monthly disbursements.

It also improved its delinquency rate by 15% year-on-year, compared to the market’s delinquency rate deteriorating by 7% YoY in 2024.

The bank’s net interest income (NII) has also risen by 26% YoY, reaching nearly HK$700m. It also grew its net interest margin (NIM) by 50% compared to the pre-corporate reorganization.

It also attributed its breakeven to “diversified revenue streams and improved operating efficiency.”

WeLab Bank chief executive Tat Lee said that the bank is thrilled to deliver profitability for the first-time in its history.

“Over the last few years, we have focused on accelerating our growth engine through innovative product offerings and cross-industry collaborations. This achievement reflects the success of our strategic initiatives, cementing our leading position in the digital banking landscape,” Lee said in a press release.

Initiatives launched by the Hong Kong Monetary Authority (HKMA), such as the renaming of digital banks and the expanded Deposit Protection Scheme, have catalysed industry development, Lee added.