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Revolut greater than doubled its earnings to £1bn final yr, as Europe’s most precious start-up surpassed 50mn prospects and benefited from a surge in cryptocurrency buying and selling.
In an annual report printed on Thursday, Revolut stated its pre-tax earnings had elevated from £438mn a yr earlier. Revenues rose to £3.1bn, from £1.8bn.
Revolut’s document earnings had been underpinned by development in buyer numbers, which boosted its two largest sources of income: the charges it makes from card funds and the curiosity it earns on deposit. It stated it added virtually 15mn new prospects final yr.
Founder and chief govt Nik Storonsky stated “2024 was a landmark yr for Revolut” throughout which the London-based firm secured a banking licence in its residence market and a $45bn valuation.
“However we’re simply getting began,” he stated, including that the corporate was now concentrating on 100mn every day energetic prospects throughout 100 nations.
A surge in crypto buying and selling additionally helped the fintech final yr. Revolut’s wealth enterprise, which contains inventory and digital asset buying and selling, introduced in £506mn in revenues — an almost fourfold improve on 2023.
The division lifted Revolut to its first annual revenue in 2021 when retail merchants had been dashing to get a slice of a crypto increase. Nevertheless, the corporate’s revenues from crypto deflated the next yr.
Though Revolut has attracted hundreds of thousands of consumers to its glossy cell app, the fintech nonetheless faces a major problem in convincing them to make use of it for his or her major checking account. Gathering a essential mass of deposits is a vital a part of the corporate’s plan to unlock funding for loans and compete with the most important retail banks.
Revolut’s complete buyer balances rose from £18bn to £30bn through the yr. The corporate — which reported a £979mn mortgage ebook that features bank cards and purchase now, pay later merchandise — secured a UK banking licence with restrictions in July final yr.
The licence, obtained after a protracted three-year course of with UK regulators, represented a milestone that may allow Revolut to roll out lending merchandise in its residence market. Revolut has stated it’s testing mortgages internally.
The corporate can be in search of to increase its ranks of paying subscribers. Income from charges on premium subscription plans, which supply a variety of perks, rose 74 per cent yr on yr to £423mn. It has additionally focused company prospects, with its enterprise providing now accounting for about 15 per cent of revenues.