Launched in August 2022, GXS Bank had widened its loss by 33.7% y-o-y to $152.1 million in its FY2023 ended December. Net interest income (NII) grew to $13 million from $2.2 million in the previous year, while non-interest income (non-II) contracted by almost 50% to $1.35 million. Total income for the full year stood at $14.3 million, surging 190% y-o-y.
Two years after their launch, the new digital-only banks continue to struggle to turn profitable. In their applications to the Monetary Authority of Singapore (MAS) in 2019, the aspiring digital banks had to provide a five-year financial projection, which must show a path towards profitability. The banks must also meet a minimum paid-up capital of $1.5 billion within three to five years from the commencement of business.
In 2022, The Edge Singapore did an overview of the digital banking players in Singapore. At the time, three of the digital full banks (DFBs) — GXS Bank, Anext Bank and Green Link Digital Bank — had formally launched, while MariBank was only open to the public in the following year. Although Trust Bank did not carry the same licence, the bank was also launched around the same time as the former three, with similar offerings to its peers.
