Discovery Bank has marked a significant milestone, recording phenomenal growth in both customers and revenue during the second half of 2024. The bank’s latest financial results, covering the six months ending December 2024, show a remarkable 42% revenue increase, rising from R777 million to R1.1 billion year-on-year.
This impressive revenue surge was driven by a 32% growth in its customer base, which expanded from 825,069 to 1.09 million, while total accounts increased by 35%, climbing from 1.93 million to 2.61 million.
Surpassing Milestones Ahead of Schedule
Discovery Bank initially projected hitting the 1-million-client mark by 2026. However, it exceeded expectations by reaching this milestone in August 2024—two years ahead of schedule. This rapid growth signals increasing consumer trust and adoption of the bank’s digital-first approach.
From a profitability standpoint, Discovery Bank recorded an operating profit before new business acquisition costs of R69 million. This marks a sharp turnaround from the R154 million loss reported in the same period of 2023. Additionally, its loss from operations significantly decreased by 57%, dropping from R339 million to R145 million.
Adding to the success, Discovery Bank revealed that it achieved its first monthly break-even in December 2024—an accomplishment that came ahead of its initial projections.
Financial Highlights: A Strong Performance
The bank’s key financial and operational metrics further underscore its robust performance:
- Payment volumes surged by 47%, while total spending values climbed by 42%.
- Deposits increased by 27% and advances grew by 37%, fueled mainly by the launch of Discovery Bank’s home loans, which ended the period at R802 million.
- Non-interest revenue saw a 49% rise, driven by an expanding client base and higher fee income per client due to increased product uptake and engagement.
- Net interest income jumped by 34%, attributed to increased deposits and lower funding costs.
A Digital-First Approach Paying Off
Discovery Bank, one of South Africa’s pioneering branch-less banks, has been steadily disrupting the traditional banking space since its public launch in mid-2019. The bank follows a unique model akin to other Discovery divisions such as Discovery Health, Discovery Insure, and Discovery Vitality—rewarding customers for positive financial behavior.
This innovative strategy is powered by a complex ecosystem of over 120 interconnected systems, deeply integrated with Discovery’s technology infrastructure and rewards programs.
Looking Ahead
Despite prevailing economic challenges, Discovery Bank remains committed to high-quality growth and customer-centric innovation. With its strong performance in 2024, the bank is well-positioned to continue its upward trajectory and redefine digital banking in South Africa.
