Revolut profits soar to record levels as it awaits UK banking licence
The London-based group has expanded aggressively in recent years, opening offices in new countries including Brazil and New Zealand in 2023, and adding 12 million customers
Revolut has smashed records with a staggering profit in 2023, as the UK's leading fintech behemoth continues to eagerly anticipate its British banking licence.
The financial powerhouse reported a whopping pre-tax profit of £438 million for the previous year, soaring from a £25 million loss in 2022, while its revenue nearly doubled to an eye-watering £1.8 billion.
With a bold expansion strategy, the London-headquartered company has launched operations in fresh territories, including Brazil and New Zealand, just this year.
An impressive influx of 12 million new users was recorded last year, boosting Revolut's customer base to over 45 million globally.
This explosive growth trajectory has left competitors like Monzo and Starling in the dust, with their customer numbers languishing at around nine million and three million respectively.
Yet, despite its colossal user network, Revolut still lacks the authority to provide lending services such as credit cards, personal loans, or mortgages in the absence of a banking licence a privilege enjoyed by Monzo and Starling.
Having applied for the coveted licence back in 2021, Revolut has consistently hinted that approval is imminent.
On March 1, 2023, the firm optimistically announced it expected to receive the official nod "any day now", but the wait continues.
Revolut remains categorised as an electronic money institution, or EMI, within the UK, despite its vast clientele.
Nevertheless, it holds a European banking licence courtesy of Lithuanian regulators, which empowers it to extend personal loan services across France, Germany, and Spain. Last year, Revolut's loan portfolio expanded to a hefty £528 million.
Revolut significantly increased its advertising and marketing budget to £241 million last year, as part of its ambitious expansion plans across Europe.
In a recent announcement, the company revealed its decision to relocate its global headquarters to a newly-refurbished building in Canary Wharf, stating that this move "will help facilitate the future growth of Revolut's UK and global operations".
CEO Nikolay Storonsky affirmed: "We remain committed to our ongoing UK banking licence application in addition to bringing the Revolut app to new markets and customers around the world."
"Even as we reached 45 million global retail customers six months into 2024, Revolut remains poised for exponential growth in 2024 and beyond, continuing to redefine the financial services landscape as we've known it."
