Tyro Payments, a neophyte bank fresh from a major capital raising, traded once more in the red over the last financial year.The specialised payments processor incurred a loss of A$746,000 over the year to June 2016, down from a net profit of $811,000 over the previous year. Tyro posted its annual report to its website last week.The loss follows a run of four profitable years for Tyro, themselves a novelty after years of operating losses since the firm's formation in the mid 2000s as a dedicated merchant acquirer.Heavy investment by Tyro in engineering, product development and sales lies behind the 2016 loss. An accounting policy that expenses IT investments rather than capitalising them also exaggerates the loss.One project for the year ahead is to snare the right to compare itself to competitors, principally the major banks."It is our goal, once we have fulfilled all conditions, to obtain from the Australian Prudential Regulation Authority the naming right 'bank', [and so] to move from the category of other ADIs to the list of Australian-owned banks," Jost Stollman, Tyro's chief executive wrote in the annual report.The transformation of its balance sheet over the last year is one leap toward this goal. Tyro placed more than $100 million in new shares with mainly institutional shareholders over the year, lifting its total equity to $128 million.Tyro acquired one hallmark of a bank over the last year, reporting deposits for the first time, albeit a trivial $459,000.From July 2016 Tyro also entered the lending business, providing short term loans to merchants against future sales.The bank put its merchant base at 15,565 merchants at June 2016, a rise of 2500. This represents around five per cent of all merchants accepting credit card and debit card payments.Stollman confirmed a report in the Financial Review on Saturday that some long-term shareholders shuffled holdings in transactions handled by the trading platform PrimaryMarkets.PrimaryMarkets still has shares in Tyro listed for sale, with a price guide of "greater than $1.07 a share".