Revolut achieves over $1 billion in profit as customer base surges
- In 2024, Revolut reported its highest ever net profit at £1.1 billion, reflecting substantial growth.
- The company's customer base increased to 52.5 million due to the addition of nearly 15 million new users.
- Revolut's successful financial performance positions it well for a potential IPO and further expansion.
In the United Kingdom, the fintech firm Revolut reported a significant financial milestone for the year ending December 31, 2024, achieving a net profit of £1.1 billion ($1.5 billion), reflecting a 149% increase year over year. This surge in profit aligns with the company's ongoing transition towards becoming a fully operational bank after securing a restricted banking license from the UK's Prudential Regulation Authority in July 2024. The year has been marked by exceptional growth in customer engagement, with Revolut welcoming around 15 million new users, bringing its total customer base to approximately 52.5 million. Revolut's revenues also witnessed substantial growth, rising by 72% to £4 billion. Key drivers of this financial success included a notable £1 billion in interest earned on customer deposits, which was 58% more than the previous year. The company's wealth unit, which encompasses its stock and cryptocurrency trading services, experienced an impressive revenue surge of 298%, reaching £647 million. Furthermore, Revolut saw its subscription turnover jump by 74% to £423 million, indicating increased usage of its wide array of financial services. The company's strategic focus on scaling its banking operations is underscored by its ambition to serve 100 million customers globally and its preparations for an eventual IPO, although no timeline has been shared yet. Francesca Carlesi, the CEO of Revolut UK, emphasized the importance of transitioning to full banking authorization as a crucial step toward achieving these objectives. In addition, Nik Storonsky, cofounder and CEO of Revolut, highlighted this as a landmark year for the fintech, marking its fourth consecutive profitable year since its inception in 2015. As Revolut gears towards its full bank launch within the next 12 months, it faces an increasingly competitive landscape where rivals like Monzo and Starling have established a strong presence. This landscape necessitates ongoing innovation and enhanced customer service to maintain and grow its user base. The positive financial results and expansion plans indicate a promising future for Revolut, as it aims to expand its footprint across the banking landscape in the UK and beyond.