LONDON — On Thursday, the British fintech company Revolut reported a historic milestone, achieving over $1 billion in annual profit for the first time. This notable achievement represents a significant step towards the company’s anticipated initial public offering.
For the fiscal year ending December 31, 2024, Revolut announced a net profit of £1.1 billion ($1.5 billion), reflecting a robust 149% increase compared to the previous year. The company also reported a 72% rise in annual revenues, reaching £3.1 billion, fueled by expansion across multiple revenue streams.
The company’s wealth management division, which includes stock trading services, experienced remarkable growth, with revenue soaring by 298% to £506 million. Furthermore, revenue from subscriptions rose by 74% to £423 million.
Revolut also noted substantial advancement in its loan portfolio, which expanded by 86% to £979 million. This growth, combined with an increase in customer deposits, contributed to a 58% rise in interest income, totaling £790 million.
UK Bank Expansion
This financial breakthrough comes at a pivotal moment for the nearly decade-old company, which is making strides toward becoming a fully functional bank in the U.K. after receiving a banking license in July 2024.
The U.K.’s Prudential Regulation Authority granted Revolut a banking license with restrictions, concluding an application process that began back in 2021.
The restricted license signifies that Revolut is currently in the “mobilization” phase, during which the company is focused on enhancing its banking operations and infrastructure in anticipation of a full launch, expected to take roughly 12 months.
Francesca Carlesi, Revolut’s U.K. CEO, expressed to the Wall Street Journal last month that this transition to a fully authorized U.K. bank is a critical component of the company’s global expansion strategy and impending IPO. “My main strategic focus is making Revolut the primary bank for everybody in the U.K.,” she stated.
The firm is still waiting for regulatory approval to migrate all of its U.K. users to a new banking entity this summer. Once operational, Revolut will have the capability to offer loans, overdrafts, and mortgages, thereby unlocking new potential revenue sources.
However, the company faces formidable competition, as rivals Monzo and Starling have established a substantial lead. Monzo secured its full banking license in 2017, while Starling was granted its license in 2016.
