UK fintech Revolut posted record profits in 2023 with the neobank benefiting from higher interest rates and a customer acquisition spree that saw it add millions of new accounts last year.
The company said Tuesday it made a pre-tax profit of £438m in 2023, up from losses of £25m the year before. Revenues nearly doubled to £1.8bn, from £923m in 2022.
It also added 12m new customers last year, taking its total to more than 45m. Interest income grew to £500m over the same period; that’s against £83m last year, and £1.7m in 2021.
Revolut posted its first profit in 2021 before dipping back into the red in 2022.
The fintech — which has a European banking licence from authorities in Lithuania and offers personal loans in France, Germany and Spain — also grew its loan book to £528m in 2023, reports the FT.
Revolut is yet to obtain a UK banking licence, however, more than three years after submitting an application to regulators. Getting one would allow it to expand the products and services it could offer in the UK market — its biggest.
The competitors
Other neobanks to recently release results include the UK’s Starling, which posted its third year of profitability in 2023. According to results released in June, Starling posted an annual pre-tax profit of £301.1m for the year ending in March 2023 — a 55% increase on the bank’s £195m profit reported the year prior.
UK digital bank Monzo posted its first full-year profit in 2023. According to its latest financial accounts, the UK neobank posted a pre-tax profit of £15.4m for the 12 months to the end of March this year, compared to a £116m loss the year before.
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