Singapore-based Anext Bank, a digital wholesale bank under Ant International, reported revenue of S$44.9 million (US$34.58 million) for 2024, an 83.5% increase from the previous year.

Total assets more than doubled to S$1.6 billion (US$1.23 billion).

Customer deposits surged by 207% to S$906 million (US$697.73 million), while loans rose 280% to S$847 million (US$652.29 million), reflecting strong demand from MSMEs.

Despite the growth, the bank recorded a net loss of S$37.2 million (US$28.65 million), up 24.7% year-on-year. This was mainly due to continued investments in technology and product development.

Anext Bank serves businesses in retail, ecommerce, logistics, and manufacturing, covering 79 nationalities. The bank continues to focus on financial inclusion and MSME support in the region.

🔗 Source: Anext Bank

🧠 Food for thought

1️⃣ Digital banks face steeper path to profitability despite strong growth metrics

ANEXT Bank’s results reveal a common pattern among Singapore’s digital banks: impressive growth figures alongside significant ongoing losses.

While ANEXT improved its cost-to-income ratio from 187.4% to 116.1% and grew revenue by 83.5%, it still posted a net loss of S$37.2 million, 24.7% higher than the previous year 1.

This profitability challenge is even more pronounced at other digital banks, with GXS Bank reporting a much larger S$152 million loss in fiscal year 2023 2.

The contrast with traditional banks is stark. DBS, OCBC, and UOB all posted strong profits in 2024, driven by fee income and trading gains, while maintaining stable asset quality with non-performing loan ratios remaining steady 3.

Digital banks must balance their technology investments against the need for financial sustainability, as shown by ANEXT Bank’s commitment to continue funding tech infrastructure despite its losses 4.

2️⃣ Singapore’s digital banking experiment shows niche targeting strategy in competitive landscape

Each of Singapore’s digital banks has carved out specific customer segments rather than competing broadly. ANEXT Bank focuses exclusively on micro, small, and medium enterprises (MSMEs), requiring only S$100 million in capital under its wholesale banking license 5.

This strategic focus has yielded results for ANEXT, with loans growing 280% to S$847 million, highlighting strong demand from SMEs for accessible financing options 4.