Insights

Digital Bank Revolut Reports 95% Revenue Jump, Record £344M Profit

Tuesday, 02/07/2024 | 06:16 GMT by Damian Chmiel

  • The company acquired 12 million new customers, increasing its base to 38 million.
  • Fintech is also confident that it will soon obtain a banking license in the UK.

Revolut CEO, Nikolay Storonsky

Revolut CEO, Nikolay Storonsky. Source: Flickr

Revolut, the London-based fintech giant, has announced a significant leap in profitability for 2023 and expressed confidence in obtaining a UK banking license, according to the financial report published this week.

Revolut Reports Record Revenue and Profit

The digital banking platform reported a pre-tax profit of £438 million for 2023, marking a substantial turnaround from its £25.4 million loss in the previous year. This financial milestone comes as Revolut continues its pursuit of a full UK banking license, a process that has been ongoing for over three years.

The company’s revenue surged by 95% to £1.8 billion, compared to £922 million reported a year earlier. Interest income now accounts for approximately 28% of total revenue. Revenues are expected to be even higher in the future, as the company plans to generate $370 million from advertisements alone by 2026.

After deducting all tax and credit costs, the net profit stood at £344 million, significantly exceeding the modest profit of just under £6 million in 2022.

Source: Revolut

Source: Revolut

“In 2023, we took our biggest steps yet on that journey. We accelerated customer growth and increased the adoption of our products across the board, driving a record year for Revolut financially,” Nik Storonsky, the CEO and Co-Founder of Revolut, commented in the report published on Tuesday.

Revolut posts bumper 2023 profit as CEO optimistic on UK bank licence approval, CNBC reports https://t.co/zawzDYqdOq pic.twitter.com/QniefPRvwK

— Reuters (@Reuters) July 2, 2024

It’s worth noting that Revolut has previously published its financial reports with significant delays. For example, we only learned about the results from two years ago at the end of 2023. Currently, the company has taken considerably less time to release its numbers, which may be a result of preparations for obtaining a license in the United Kingdom.

Strong User Growth and The UK License Plans

The fintech firm’s strong financial performance was driven by visible user growth and revenue diversification. Revolut added 12 million new customers in 2023, bringing its total user base to over 35 million globally.

Victor Stinga, the Chief Financial Officer at Revolut

Victor Stinga, the Chief Financial Officer at Revolut

“We added 11.8 million new customers in 2023, more than in any prior year in our history, consolidating our market-leading position with 38.0 million customers globally by year-end,” added Victor Stinga, the Chief Financial Officer at Revolut.

Revolut’s pursuit of a UK banking license is seen as crucial for its expansion plans in its home market. The license would allow the company to offer a broader range of financial products, including loans and mortgages, potentially capitalizing on the current high-interest rate environment.

As Revolut awaits regulatory approval, the company continues to operate as a licensed electronic money institution in the UK. The firm has reportedly addressed key regulatory concerns, including restructuring its share classes to align with the Prudential Regulation Authority’s requirements.

Preparing for a license, the company has moved its base to the heart of London’s financial district, capitalizing on the fact that large banks are vacating the area en masse. Revolut is setting up a new base in the YY London building in Canary Wharf.

At the same time, the company plans to increase its employment by 40% over the year, reaching 11,500 employees in 2024. As stated in the 2023 report, the company certainly does not lack willing hands to work: just last year, it received 1.9 million job applications.

Revolut, the London-based fintech giant, has announced a significant leap in profitability for 2023 and expressed confidence in obtaining a UK banking license, according to the financial report published this week.

Revolut Reports Record Revenue and Profit

The digital banking platform reported a pre-tax profit of £438 million for 2023, marking a substantial turnaround from its £25.4 million loss in the previous year. This financial milestone comes as Revolut continues its pursuit of a full UK banking license, a process that has been ongoing for over three years.

The company’s revenue surged by 95% to £1.8 billion, compared to £922 million reported a year earlier. Interest income now accounts for approximately 28% of total revenue. Revenues are expected to be even higher in the future, as the company plans to generate $370 million from advertisements alone by 2026.

After deducting all tax and credit costs, the net profit stood at £344 million, significantly exceeding the modest profit of just under £6 million in 2022.

Source: Revolut

Source: Revolut

“In 2023, we took our biggest steps yet on that journey. We accelerated customer growth and increased the adoption of our products across the board, driving a record year for Revolut financially,” Nik Storonsky, the CEO and Co-Founder of Revolut, commented in the report published on Tuesday.

Revolut posts bumper 2023 profit as CEO optimistic on UK bank licence approval, CNBC reports https://t.co/zawzDYqdOq pic.twitter.com/QniefPRvwK

— Reuters (@Reuters) July 2, 2024

It’s worth noting that Revolut has previously published its financial reports with significant delays. For example, we only learned about the results from two years ago at the end of 2023. Currently, the company has taken considerably less time to release its numbers, which may be a result of preparations for obtaining a license in the United Kingdom.

Strong User Growth and The UK License Plans

The fintech firm’s strong financial performance was driven by visible user growth and revenue diversification. Revolut added 12 million new customers in 2023, bringing its total user base to over 35 million globally.

Victor Stinga, the Chief Financial Officer at Revolut

Victor Stinga, the Chief Financial Officer at Revolut

“We added 11.8 million new customers in 2023, more than in any prior year in our history, consolidating our market-leading position with 38.0 million customers globally by year-end,” added Victor Stinga, the Chief Financial Officer at Revolut.

Revolut’s pursuit of a UK banking license is seen as crucial for its expansion plans in its home market. The license would allow the company to offer a broader range of financial products, including loans and mortgages, potentially capitalizing on the current high-interest rate environment.

As Revolut awaits regulatory approval, the company continues to operate as a licensed electronic money institution in the UK. The firm has reportedly addressed key regulatory concerns, including restructuring its share classes to align with the Prudential Regulation Authority’s requirements.

Preparing for a license, the company has moved its base to the heart of London’s financial district, capitalizing on the fact that large banks are vacating the area en masse. Revolut is setting up a new base in the YY London building in Canary Wharf.

At the same time, the company plans to increase its employment by 40% over the year, reaching 11,500 employees in 2024. As stated in the 2023 report, the company certainly does not lack willing hands to work: just last year, it received 1.9 million job applications.

Damian Chmiel

  • 1553 Articles
  • 35 Followers

Damian’s adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.

  • 1553 Articles
  • 35 Followers

Finance Magnates Daily Update

Get all the top financial news delivered straight to your inbox. Stay informed, stay ahead.

Keep Reading

More from the Author

FinTech

Featured Videos

IFX EXPO International2024: What is next for liquidity providers?

IFX EXPO International2024: What is next for liquidity providers?

IFX EXPO International2024: What is next for liquidity providers?

IFX EXPO International2024: What is next for liquidity providers?

More Videos

  • X Open Hub’s CEO, Michal Copiuk, on AI

    X Open Hub’s CEO, Michal Copiuk, on AI

    X Open Hub’s CEO, Michal Copiuk, on AI

    X Open Hub’s CEO, Michal Copiuk, on AI

    X Open Hub’s CEO, Michal Copiuk, on AI

    X Open Hub’s CEO, Michal Copiuk, on AI

    X Open Hub’s CEO, Michal Copiuk, on the developments of AI

    X Open Hub’s CEO, Michal Copiuk, on the developments of AI

    X Open Hub’s CEO, Michal Copiuk, on the developments of AI

    X Open Hub’s CEO, Michal Copiuk, on the developments of AI

    X Open Hub’s CEO, Michal Copiuk, on the developments of AI

    X Open Hub’s CEO, Michal Copiuk, on the developments of AI

  • CySEC’s Chairman, Dr George Theocharides, speaking at the iFX EXPO International 2024

    CySEC’s Chairman, Dr George Theocharides, speaking at the iFX EXPO International 2024

    CySEC’s Chairman, Dr George Theocharides, speaking at the iFX EXPO International 2024

    CySEC’s Chairman, Dr George Theocharides, speaking at the iFX EXPO International 2024

    CySEC’s Chairman, Dr George Theocharides, speaking at the iFX EXPO International 2024

    CySEC’s Chairman, Dr George Theocharides, speaking at the iFX EXPO International 2024

    CySEC’s Chairman, Dr George Theocharides, speaking at the iFX EXPO International 2024

    CySEC’s Chairman, Dr George Theocharides, speaking at the iFX EXPO International 2024

    CySEC’s Chairman, Dr George Theocharides, speaking at the iFX EXPO International 2024

    CySEC’s Chairman, Dr George Theocharides, speaking at the iFX EXPO International 2024

    CySEC’s Chairman, Dr George Theocharides, speaking at the iFX EXPO International 2024

    CySEC’s Chairman, Dr George Theocharides, speaking at the iFX EXPO International 2024

  • FX and CFDs in Africa: Key Industry Trends | FMAS:24

    FX and CFDs in Africa: Key Industry Trends | FMAS:24

    FX and CFDs in Africa: Key Industry Trends | FMAS:24

    FX and CFDs in Africa: Key Industry Trends | FMAS:24

    FX and CFDs in Africa: Key Industry Trends | FMAS:24

    FX and CFDs in Africa: Key Industry Trends | FMAS:24

    As Africa joins the global financial markets, its unique economy fuels forex and CFD trading innovation. Discover growth drivers: tech advancements, regulations, and increased financial education for African traders. See how these factors enhance trading accessibility, transparency, financial inclusion, and opening new investment opportunities. Learn about the digital transformation’s impact on trading –the role of technology, social platforms, and automated systems in democratizing market access. SPEAKER: Christoforos Panagiotou, Africa Regional Manager at Fxview @Fxview #fmas #fmas24 #fmevents #financemagnates #fintech #technology #onlinetrading #forex #investing #investors 📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today: 🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents 📸 Instagram: https://www.instagram.com/fmevents_official 🐦 Twitter: https://twitter.com/F_M_events 🎥 TikTok: https://www.tiktok.com/@fmevents_official ▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official Don’t miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    As Africa joins the global financial markets, its unique economy fuels forex and CFD trading innovation. Discover growth drivers: tech advancements, regulations, and increased financial education for African traders. See how these factors enhance trading accessibility, transparency, financial inclusion, and opening new investment opportunities. Learn about the digital transformation’s impact on trading –the role of technology, social platforms, and automated systems in democratizing market access. SPEAKER: Christoforos Panagiotou, Africa Regional Manager at Fxview @Fxview #fmas #fmas24 #fmevents #financemagnates #fintech #technology #onlinetrading #forex #investing #investors 📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today: 🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents 📸 Instagram: https://www.instagram.com/fmevents_official 🐦 Twitter: https://twitter.com/F_M_events 🎥 TikTok: https://www.tiktok.com/@fmevents_official ▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official Don’t miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    As Africa joins the global financial markets, its unique economy fuels forex and CFD trading innovation. Discover growth drivers: tech advancements, regulations, and increased financial education for African traders. See how these factors enhance trading accessibility, transparency, financial inclusion, and opening new investment opportunities. Learn about the digital transformation’s impact on trading –the role of technology, social platforms, and automated systems in democratizing market access. SPEAKER: Christoforos Panagiotou, Africa Regional Manager at Fxview @Fxview #fmas #fmas24 #fmevents #financemagnates #fintech #technology #onlinetrading #forex #investing #investors 📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today: 🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents 📸 Instagram: https://www.instagram.com/fmevents_official 🐦 Twitter: https://twitter.com/F_M_events 🎥 TikTok: https://www.tiktok.com/@fmevents_official ▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official Don’t miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    As Africa joins the global financial markets, its unique economy fuels forex and CFD trading innovation. Discover growth drivers: tech advancements, regulations, and increased financial education for African traders. See how these factors enhance trading accessibility, transparency, financial inclusion, and opening new investment opportunities. Learn about the digital transformation’s impact on trading –the role of technology, social platforms, and automated systems in democratizing market access. SPEAKER: Christoforos Panagiotou, Africa Regional Manager at Fxview @Fxview #fmas #fmas24 #fmevents #financemagnates #fintech #technology #onlinetrading #forex #investing #investors 📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today: 🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents 📸 Instagram: https://www.instagram.com/fmevents_official 🐦 Twitter: https://twitter.com/F_M_events 🎥 TikTok: https://www.tiktok.com/@fmevents_official ▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official Don’t miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    As Africa joins the global financial markets, its unique economy fuels forex and CFD trading innovation. Discover growth drivers: tech advancements, regulations, and increased financial education for African traders. See how these factors enhance trading accessibility, transparency, financial inclusion, and opening new investment opportunities. Learn about the digital transformation’s impact on trading –the role of technology, social platforms, and automated systems in democratizing market access. SPEAKER: Christoforos Panagiotou, Africa Regional Manager at Fxview @Fxview #fmas #fmas24 #fmevents #financemagnates #fintech #technology #onlinetrading #forex #investing #investors 📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today: 🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents 📸 Instagram: https://www.instagram.com/fmevents_official 🐦 Twitter: https://twitter.com/F_M_events 🎥 TikTok: https://www.tiktok.com/@fmevents_official ▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official Don’t miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    As Africa joins the global financial markets, its unique economy fuels forex and CFD trading innovation. Discover growth drivers: tech advancements, regulations, and increased financial education for African traders. See how these factors enhance trading accessibility, transparency, financial inclusion, and opening new investment opportunities. Learn about the digital transformation’s impact on trading –the role of technology, social platforms, and automated systems in democratizing market access. SPEAKER: Christoforos Panagiotou, Africa Regional Manager at Fxview @Fxview #fmas #fmas24 #fmevents #financemagnates #fintech #technology #onlinetrading #forex #investing #investors 📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today: 🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents 📸 Instagram: https://www.instagram.com/fmevents_official 🐦 Twitter: https://twitter.com/F_M_events 🎥 TikTok: https://www.tiktok.com/@fmevents_official ▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official Don’t miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

  • Asset Allocation & Trading in a Lower Interest Rate Environment | FMAS:24

    Asset Allocation & Trading in a Lower Interest Rate Environment | FMAS:24

    Asset Allocation & Trading in a Lower Interest Rate Environment | FMAS:24

    Asset Allocation & Trading in a Lower Interest Rate Environment | FMAS:24

    Asset Allocation & Trading in a Lower Interest Rate Environment | FMAS:24

    Asset Allocation & Trading in a Lower Interest Rate Environment | FMAS:24

    Traditional investment paradigms shift in a lower interest rate environment, compelling investors to reassess their asset allocation and trading strategies. This scenario prioritizes diversification beyond conventional bonds and equities. Investors should adapt by seeking assets with the potential for higher yields, considering global markets, and employing dynamic trading strategies that leverage short-term market fluctuations, all while managing risk more meticulously to safeguard returns. SPEAKER: Roger Eskinazi, Managing Partner at Tickmill South Africa #fmas #fmas24 #fmevents #financemagnates #fintech #technology #onlinetrading #forex #investing #investors 📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today: 🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents 📸 Instagram: https://www.instagram.com/fmevents_official 🐦 Twitter: https://twitter.com/F_M_events 🎥 TikTok: https://www.tiktok.com/@fmevents_official ▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official Don’t miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    Traditional investment paradigms shift in a lower interest rate environment, compelling investors to reassess their asset allocation and trading strategies. This scenario prioritizes diversification beyond conventional bonds and equities. Investors should adapt by seeking assets with the potential for higher yields, considering global markets, and employing dynamic trading strategies that leverage short-term market fluctuations, all while managing risk more meticulously to safeguard returns. SPEAKER: Roger Eskinazi, Managing Partner at Tickmill South Africa #fmas #fmas24 #fmevents #financemagnates #fintech #technology #onlinetrading #forex #investing #investors 📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today: 🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents 📸 Instagram: https://www.instagram.com/fmevents_official 🐦 Twitter: https://twitter.com/F_M_events 🎥 TikTok: https://www.tiktok.com/@fmevents_official ▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official Don’t miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    Traditional investment paradigms shift in a lower interest rate environment, compelling investors to reassess their asset allocation and trading strategies. This scenario prioritizes diversification beyond conventional bonds and equities. Investors should adapt by seeking assets with the potential for higher yields, considering global markets, and employing dynamic trading strategies that leverage short-term market fluctuations, all while managing risk more meticulously to safeguard returns. SPEAKER: Roger Eskinazi, Managing Partner at Tickmill South Africa #fmas #fmas24 #fmevents #financemagnates #fintech #technology #onlinetrading #forex #investing #investors 📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today: 🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents 📸 Instagram: https://www.instagram.com/fmevents_official 🐦 Twitter: https://twitter.com/F_M_events 🎥 TikTok: https://www.tiktok.com/@fmevents_official ▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official Don’t miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    Traditional investment paradigms shift in a lower interest rate environment, compelling investors to reassess their asset allocation and trading strategies. This scenario prioritizes diversification beyond conventional bonds and equities. Investors should adapt by seeking assets with the potential for higher yields, considering global markets, and employing dynamic trading strategies that leverage short-term market fluctuations, all while managing risk more meticulously to safeguard returns. SPEAKER: Roger Eskinazi, Managing Partner at Tickmill South Africa #fmas #fmas24 #fmevents #financemagnates #fintech #technology #onlinetrading #forex #investing #investors 📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today: 🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents 📸 Instagram: https://www.instagram.com/fmevents_official 🐦 Twitter: https://twitter.com/F_M_events 🎥 TikTok: https://www.tiktok.com/@fmevents_official ▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official Don’t miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    Traditional investment paradigms shift in a lower interest rate environment, compelling investors to reassess their asset allocation and trading strategies. This scenario prioritizes diversification beyond conventional bonds and equities. Investors should adapt by seeking assets with the potential for higher yields, considering global markets, and employing dynamic trading strategies that leverage short-term market fluctuations, all while managing risk more meticulously to safeguard returns. SPEAKER: Roger Eskinazi, Managing Partner at Tickmill South Africa #fmas #fmas24 #fmevents #financemagnates #fintech #technology #onlinetrading #forex #investing #investors 📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today: 🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents 📸 Instagram: https://www.instagram.com/fmevents_official 🐦 Twitter: https://twitter.com/F_M_events 🎥 TikTok: https://www.tiktok.com/@fmevents_official ▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official Don’t miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

    Traditional investment paradigms shift in a lower interest rate environment, compelling investors to reassess their asset allocation and trading strategies. This scenario prioritizes diversification beyond conventional bonds and equities. Investors should adapt by seeking assets with the potential for higher yields, considering global markets, and employing dynamic trading strategies that leverage short-term market fluctuations, all while managing risk more meticulously to safeguard returns. SPEAKER: Roger Eskinazi, Managing Partner at Tickmill South Africa #fmas #fmas24 #fmevents #financemagnates #fintech #technology #onlinetrading #forex #investing #investors 📣 Stay updated with the latest in finance and trading! Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today: 🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/ 👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents 📸 Instagram: https://www.instagram.com/fmevents_official 🐦 Twitter: https://twitter.com/F_M_events 🎥 TikTok: https://www.tiktok.com/@fmevents_official ▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official Don’t miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button