Challenger reviewing status of neobank

The customer savings and loan bank was this year rebranded as Challenger Bank.

When first announced in December 2020, Challenger called the acquisition "highly strategic" but has since rethought that.

"Market conditions have changed and it is becoming apparent the bank is unlikely to realise the expected benefits in the timeframe anticipated," Challenger said while announcing its full-year results on Tuesday.

The company has appointed Gresham Partners to assist the strategic review. 

For now there is no change to the bank's operations and it will continue to accept new customers.

Challenger Bank had $219 million in term deposit sales and a deposit book of $227.7 million as of June 30. 

It incurred an $11 million loss in 2021/22, Challenger says.

At 1.04pm AEST, Challenger shares were down 13.9 per cent to $6.13.