Revolut might still be waiting for its UK banking licence to arrive but the fintech giant nevertheless managed to notch up record profits last year after adding 12 million customers in 2023.
Revolut, which filed for a licence in 2021, made a pre-tax profit of £438 million last year, up from a loss of £25 million in 2022. In its annual report the company also further hinted at plans for a stock market flotation.
Chief executive Nikolay Storonsky said: "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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Get 6 issues free
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"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."
Unlike rivals Monzo and Starling, Revolut is still not allowed to offer lending products such as credit cards, personal loans, or mortgages without a banking licence.
UK CEO Francesca Carlesi told Reuters that Revolut’s banking licence application was "progressing well" but that there are "a lot of steps" in the process.
"We are by nature optimistic but you know at the same time, I really don’t think we should put any timeline to this," she said.
Banking licences are typically granted within 12 months of application, guidance from the UK regulator reads. In its latest annual report, Revolut said: “We are continuing to work closely with the [Prudential Regulation Authority] on our UK bank licence application.”
Listing on the horizon?
In its annual report the firm also added that it had “enhanced” its financial controls in ways expected of “listed companies”.
Revolut has signalled its aim to list publicly but the company's interim chief financial officer Victor Stinga declined to comment on any timeline for an IPO.
"Improving financial controls and making sure we bolster our team, being able to release these results within six months, is part of that journey. So we are taking steps in making sure that our control environment trends towards the level you require as a public company," Stinga told Reuters.
Founded in 2015, Revolut is one of a handful of fintech companies to have emerged in Britain over the past decade, offering financial services without having physical branches. Its customer numbers increased by nearly 45% last year.
The annual results, filed ahead of a September deadline, were the first to be published on time in three years.
How does the Lifetime ISA work? Key LISA rules
AJ Bell: a fine British fintech going cheap
