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Revolut more than doubled its profits to £1bn last year, as Europe’s most valuable start-up surpassed 50mn customers and benefited from a surge in cryptocurrency trading.
In an annual report published on Thursday, Revolut said its pre-tax profits had increased from £438mn a year earlier. Revenues rose to £3.1bn, from £1.8bn.
Revolut’s record profits were underpinned by growth in customer numbers, which boosted its two largest sources of revenue: the fees it makes from card payments, and the interest it earns on deposit. It said it added almost 15mn new customers last year.
Founder and chief executive Nik Storonsky said “2024 was a landmark year for Revolut” of a year in which the London-based company secured a banking licence in its home market and a $45bn valuation.
“But we’re just getting started,” he said, adding that the company was now targeting 100mn daily active customers across 100 countries.
A surge in crypto trading also helped the fintech last year. Revolut’s wealth business, which comprises stock and digital asset trading — brought in £506mn in revenues — a nearly fourfold increase on 2023.
The division lifted Revolut to its first annual profit in 2021 when retail traders were rushing to get a slice of a crypto boom. However, the company’s revenues from crypto deflated the following year.
Although Revolut has attracted millions of customers to its sleek mobile app, the fintech still faces a significant challenge in convincing them to use it for their primary bank account. Gathering a critical mass of deposits is a crucial part of the company’s plan to unlock funding for loans and compete with the largest retail banks.
Revolut’s total customer balances rose from £18bn to £30bn during the year. The company — which reported a £979mn loan book that includes credit cards and buy-now-pay-later products — secured a UK banking licence with restrictions in July last year.
The licence, obtained after a protracted three-year process with UK regulators, represented a milestone that will enable Revolut to roll out lending products in its home market. Revolut has said it is testing mortgages internally.
The company is also seeking to expand its ranks of paying subscribers. Revenue from fees on premium subscription plans, which offer a range of perks, rose 74 per cent year on year to £423mn. It has also targeted corporate customers, with its business offering now accounting for about 15 per cent of revenues.
