Revolut achieves record profits amid ongoing wait for UK banking license approval

Revolut, the London-based fintech company, has announced record annual profits and hinted at a potential stock market flotation, despite facing challenges in securing a UK banking licence. The company reported a profit of £438 million in 2023, a significant increase from the £25 million loss the previous year. This growth was fueled by higher interest rates and an expansion strategy that attracted 12 million new customers, leading to a 95% jump in revenues to £1.8 billion. However, Revolut is still awaiting approval for a UK banking licence, which would enable it to offer new financial services like loans and mortgages. While the company's application for a UK banking licence, submitted in early 2021, is still pending, Revolut's CEO, Nikolay Storonsky, expressed optimism about the approval process. The company has made progress in addressing regulatory concerns, including restructuring its share classes to comply with the Prudential Regulation Authority's rules. Despite facing delays due to its size and complex share structure, Revolut is confident about its chances of obtaining the banking licence. Revolut's financial success in 2023 was attributed to a surge in user numbers, with 12 million new customers joining the platform. The company's chief financial officer, Victor Stinga, highlighted strong performance across various revenue streams, including card fees, foreign exchange, and wealth management services. The company's revenue growth was also driven by a significant increase in interest income, accounting for 28% of total revenues. As Revolut continues to expand globally and attract millions of new customers, it remains committed to its UK banking licence application and future growth plans. The company's move to a new headquarters in Canary Wharf signals its dedication to expanding operations. Despite regulatory challenges and past delays, Revolut's financial results and growth trajectory position it as a key player in the fintech industry, outpacing competitors like Monzo and Starling in customer acquisition and revenue generation.