UK Fintech Revolut exceeds $1 billion in profits as revenue jumps

LONDON – British fintech company Revolut announced on Thursday that annual profits have exceeded $1 billion for the first time.

Revolut, which provides a variety of banking and financial services via the app, said its net income for the year ending December 31, 2024 was £1.1 billion ($1.5 billion), up 149% from the previous year. The company’s revenues rose to £3.1 billion, up 72% year-on-year to accord with the growth of various revenue streams.

Revolut’s Wealth Unit, including its stock trading business, grew significantly in the company, with revenues rising 298% to £506 million, while subscription sales reached £423 million, to 74%.

Also, Revolut saw a significant increase in its loan book, increasing 86% to £979 million. Coupled with the jump in customer deposits, this contributed to a 58% increase in interest income, totaling £790 million.

Revolut’s financial milestone arrives at a critical time for businesses almost a decade ago. Digital Banking Unicorn is preparing to transition to become a fully operational bank in the UK after securing its bank license last summer.

In July 2024, the UK’s Prudential Regulatory Authority granted a restricted banking license, ending the lengthy application process that began in 2021.

A restricted license means that Revolut is currently in the “mobilization” phase. This phase focuses on building the infrastructure to launch the banking operations and infrastructure entirely. The period usually lasts about 12 months.

Francesca Carlesi, UK CEO of Revolut, told the Wall Street Journal last month that he views becoming a fully licensed UK bank as a key step in global expansion and ultimate IPO. “My main strategic focus is making Revolut a major bank for everyone in the UK,” she told WSJ.

Revolut is still waiting for regulatory approval this summer to move all UK users into the new banking industry. Once fully operational, the company will begin offering loans, overdrafts and mortgages, paving the way for new revenue streams.

There are steep hills to climb. Rivals Monzo and Sterling got their head start for a long time with Revolut. Monzo received his full banking license in 2017, but Starling was given his own permission in 2016.