Bank One Zero halts expansion into Italy

Israeli digital bank One Zero is going through a downsizing process that will see it cut more than two dozen employees, about 5% of the company’s workforce, and suspend its expansion into Italy until further notice. This is due to the prevailing economic uncertainty and the impact of war, according to a letter from One Zero CEO Gal Bar Dean to the bank’s staff today.

“Before the war, we started the planned expansion of the bank abroad,” Bar Dea said. “This was part of the business plan we described from the first day, whereby we invested in the development of technology designed to support global expansion, in different languages ​​and currencies. We chose Italy as the first country to launch our new activity and we contacted well-known international partners. There is progress in this direction until everything calms down and the security situation stabilizes.

Bar Dea said that in the first half of this year, the bank’s income increased by 150% compared to the first half of 2023, while expenses decreased by 20%. Non-interest income from subscription fees, trading and currency commissions increased 5 times, and the loan portfolio increased by 75% and reached 312 million manats. Deposits of the population increased by 62% and reached 2.34 billion manats. “Our focus is on continuous growth and improvement in all financial parameters, as well as continuous cost reduction to achieve profitability in accordance with the business plan, despite the situation in Israel. All the more so, like many, in this time of war and uncertainty. Enterprises at this time we have to act responsibly and regulate the company’s resources.”

In financial reports published in March, One Zero reported a loss of NIS 357 million for 2023, mainly due to investment in technology, after a loss of $263 million in 2022.

Globes, Israel business news – en.globes.co.il – published on September 9, 2024.

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