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Revolut greater than doubled its income to £1bn final yr, as Europe’s most precious start-up surpassed 50mn clients and benefited from a surge in cryptocurrency buying and selling.
In an annual report revealed on Thursday, Revolut stated its pre-tax income had elevated from £438mn a yr earlier. Revenues rose to £3.1bn, from £1.8bn.
Revolut’s file income have been underpinned by progress 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 clients 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 dwelling market and a $45bn valuation.
“However we’re simply getting began,” he stated, including that the corporate was now concentrating on 100mn every day lively clients 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 — a virtually fourfold improve on 2023.
The division lifted Revolut to its first annual revenue in 2021 when retail merchants have been speeding to get a slice of a crypto increase. Nevertheless, the corporate’s revenues from crypto deflated the next yr.
Though Revolut has attracted thousands and thousands of consumers to its glossy cell app, the fintech nonetheless faces a big problem in convincing them to make use of it for his or her major checking account. Gathering a crucial 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 whole buyer balances rose from £18bn to £30bn in the course of the yr. The corporate — which reported a £979mn mortgage e book 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 can allow Revolut to roll out lending merchandise in its dwelling market. Revolut has stated it’s testing mortgages internally.
The corporate can also be in search of to broaden its ranks of paying subscribers. Income from charges on premium subscription plans, which supply a spread of perks, rose 74 per cent yr on yr to £423mn. It has additionally focused company clients, with its enterprise providing now accounting for about 15 per cent of revenues.
