Nigeria’s Kuda Bank reportedly incurs N6 billion loss in 2021

Kuda Bank

Kuda Bank Nigerian fast growing and trending micro finance bank tagged Kuda bank has reportedly incurred a total sum of 6 billion naira in 2021.

The company’s result was first reported by Techcabal, a Nigerian-based news website focused on covering the tech sector in Africa. We are yet to cite a copy of the financial statement.

Kuda bank is a Nigerian Fintech company which has grow spreading across Nigeria and has gained alot of users and attention.

This is one of the service free banks operating in Nigeria and which made it more convenient and lovely for users.

Kuda Bank charges N10 for transaction to other banks and get get 25 free transfers to other banks every month.

Some of these disruptive banking models have made it the darling of young Nigerians. However, this comes with a huge cost as the report clearly elucidates.

As known banks makes most of there revenue from lending and loan giving, Kuda bank is not left behind as the The company makes money by giving our micro-loans to retail borrowers, SMEs, farmers, and traders all classified as subprime and highly risky.

In 2020 the company makes N72.6 million and N3.2 Billion naira in 2021 bringing a spike in revenue of 44%.

As the company focus more on agressive loaning, it Record a high rate of Non performing Loan (NPL)

 

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