Interest Income and Gains (Losses) on Financial Instruments increased 103% YoY,<\/strong> or 105% YoY FXN, to $1,255.5 million in Q1\u201923. The increase reflected mainly higher three factors<\/strong>: (1) higher interest income in the consumer finance portfolio<\/strong>, associated with the ongoing expansion of both personal loans and credit cards; (2) credit mix, mainly associated with the increase of installments with interest within the credit card portfolio; and (3) the continuous rise in Brazil\u2019s interest rates<\/strong> (the interbank deposit rate or \u201cCDI\u201d) which accumulated 3.21% quarterly in Q1\u201923 versus 2.42% quarterly in Q1\u201922.<\/p>\n<\/blockquote>\n

So we\u2019re seeing a positive impact on neobank performance in the U.K. and Brazil, and likely in the United States as well.<\/p>\n

Which neobanks should we expect to benefit similarly? The good news could extend to Chime, Varo and Current in the U.S., to pick a few. We expect that U.K.\u2019s Revolut and Monese would enjoy similar gains. N26 in the EU is another obvious name to keep in mind.<\/p>\n

Is the economy strong enough for more neobank IPOs? Sure, but with the fintech valuations still so depressed, we doubt that any new IPO filings will drop anytime soon. Still, Monzo\u2019s results are one more ray of warm sunshine for this particular subsector of the beleaguered fintech market. And in 2023, all bits of good news are welcome.<\/p>\n<\/p><\/div>\n

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