British fintech firm Revolut has reached a major milestone, announcing a net profit of £1.1 billion ($1.5 billion) for the year ending December 31, 2024, marking its first time surpassing the $1 billion profit mark. This represents a 149% increase compared to the previous year. Revolut’s revenue also saw substantial growth, rising 72% year-on-year to £3.1 billion, with notable expansion across multiple revenue streams.
The firm’s wealth division, including its stock and crypto trading services, achieved extraordinary growth, with revenue jumping 298% to £506 million. Subscriptions also experienced a 74% increase, reaching £423 million. Revolut’s loan book grew 86% to £979 million, and its interest income saw a 58% rise, amounting to £790 million, largely driven by a surge in customer deposits.
These results come at a pivotal time for the fintech firm, which is gearing up for its transition into a fully operational bank in the UK. After securing a banking license from the UK’s Prudential Regulation Authority in July 2024, Revolut is now in the “mobilization” phase, preparing for a full launch. The company is working closely with regulatory bodies to transfer its 11 million UK users to the new banking entity. Once fully operational, Revolut will be able to offer services like loans, overdrafts, and mortgages, significantly broadening its income streams.
Victor Stinga, Revolut’s CFO, highlighted that becoming a licensed bank would allow the firm to offer government-protected deposits, boosting customer trust. The firm aims to become the primary bank for UK users, leveraging the advantages of being a fully licensed bank. This transition is seen as a critical step in Revolut’s global expansion strategy, including its eventual IPO. However, the company faces competition from established rivals like Monzo and Starling, which have had a head start with banking licenses granted in 2016 and 2017, respectively.
With the UK bank launch on the horizon, Revolut is focused on expanding its lending capabilities, including credit cards and personal loans, and solidifying its position as a significant player in the global financial services market.
READ MORE: