UK digital banking group Monzo’s European hub in Dublin racked up almost €29 million of losses in a little over a year and a half before officially launching in the Republic in April with a range of current and savings accounts. Monzo Bank Europe posted a €28.8 million net loss in its financial year to the end of March, according to accounts filed this week with the Companies Registration Office. That followed a €4.06 million shortfall for its first seven months in operation, after being established in late August 2024. The business received a €71 million capital injection from its parent last November, just weeks before the company was granted a full banking licence from the Central Bank of Ireland. The company plans to launch later this year in Spain under the European Union’s passporting regime, which allows authorised financial institutions licensed in one member state to offer services across the bloc. It has established offices in Madrid and Barcelona and is building up a waiting list of customers in that market. The company’s share capital stood at €84 million at the end of the period. Companies typically record losses as they are being set up. Monzo Europe disclosed that its losses were driven by staff expenses and other operational costs before it started generating meaningful income. The company recorded €437,000 of interest income last year, generated from investing much of the capital injection from its parent into short-term government bonds and other highly rated debt. Customer deposits stood at €8.8 million at the end of March, as a result of a limited launch. The bank had 100,000 customers on a wait list by the time it officially launched its offering here in mid-April of free current and savings accounts for individuals and a selection of free business accounts.Monzo Europe said in February that it planned to double its Irish team to 70 by the middle of next year. A spokeswoman for the bank declined to comment on when it expects to reach profitability. “The strategic focus moving forward is to continue providing a comprehensive range of everyday banking activities, savings, lending and other essential products and services to its Irish broader European bank,” Monzo Europe, which is led by chief executive Michael Carney, said in the report. While a Department of Finance survey late last year found that almost 90 per cent of adults in the Republic still use AIB, Bank of Ireland and PTSB as their main financial services provider, a growing number of consumers are using digital challenger banks for various products. The planned entry of Revolut Bank, which has 3.4 million customers in the Republic, into the Irish mortgage market, the likely expansion of Avant Money’s banking offering, and Goldman Sachs exploring bringing its Marcus deposits brand to the State are likely to increase competition in the market.