Revolut, the fintech firm based in London, reported an impressive profit of £312 million ($428 million), surpassing the projected £255 million ($350 million) estimate last year by its CEO, Nik Storonsky. This profit, a marked progression from the £5 million ($7 million) in 2022, signifies a consistent third-year profit progression. The firm’s £1.6 billion ($2.2 billion) revenue, a whopping 95% rise, also exceeded the company’s initial guidance by roughly £146 million ($200 million).
After three months of advance filing, a significant move in the statutory deadline, Revolut didn’t have to file for an extension on the annual accounts submission, an action the fintech firm has been known for in recent years. This change hints at an important milestone, as Revolut seeks to obtain a UK banking licence, a tool for broadening its services within the UK.
Storonsky reiterated his dedication to securing a UK banking license while also aiming to introduce the Revolut app to new customers and markets across the globe. In comparison, Revolut had to request a three-month extension to release its 2022 annual accounts in the previous year, and the 2021 accounts weren’t accessible until March 2023, several months beyond the deadline.
The company is operational within the eurozone under a Lithuanian banking licence, falling under ECB supervision due to its size. Recently, the Financial Times intimated that Revolut aims for a valuation surpassing £29 billion ($40 billion) in a share sale, a move that would reinforce its standing as Europe’s top start-up. The SoftBank-supported firm, in association with Morgan Stanley, plans to trade around £364 million ($500 million) of existing shares, including those belonging to employees.
Storonsky and Vlad Yatsenko, as co-founders of Revolut in 2015, established Europe’s most valuable start-up that was given a valuation of £24 billion ($33 billion) through a 2021 fundraising. Despite the challenging circumstances for European fintech groups in recent years brought about by increased interest rates affecting valuations, this target defies all expectations if met.
Revolut witnessed a significant surge in net interest income, which escalated over 500% to reach $621 million. This leap was principally spurred by interest accrued on surplus cash held with central banks. Further, revenue from card and transaction services saw a 59% rise to $605 million. Similarly, earnings from foreign exchange and wealth products hiked by 46% to a total of $491 million, while subscription revenues grew by 53% to $303 million.
Revolut’s customer base experienced substantial growth in the past year, with an addition of 12 million new customers globally. This marked the highest influx in a year since the establishment of the company, taking the total customer count to 38 million. This number further swelled to 45 million during the first half of this year.
On the financial front, customer deposits saw a 41% increment to $22 billion, while the value of the loan portfolio rocketed by 159% to $680 million. The Republic observed a 21% spike in customer figures last year, reaching 2.7 million, equating to almost half of the state’s population. Revolut has expressed intentions of expanding its Irish clientele to over 3 million within the current year.
Revolut forecasted earlier this year that by the year-end 2024, the size of its global staff would reach 11,500, representing a 40% increase from 2023.