Revolut reports record profit amid strong user growth and interest income

British fintech firm Revolut made a record pretax earnings of 438 million pounds ($553.81 million) in 2023 on solid user growth and zooming interest-related revenue, it said on Tuesday, as it seeks to cement its position as Europe’s most valuable startup.

Introduction

British fintech company Revolut announced a record pretax profit of 438 million pounds ($553.81 million) in 2023, driven by significant user growth and soaring interest-related income.

This milestone cements Revolut’s position as Europe’s most valuable startup.

Financial Performance

The company’s revenue almost doubled to a forecast-beating 1.8 billion pounds in 2023. This surge was significantly aided by interest income, which rose dramatically to 500 million pounds from 83 million pounds in 2022.

These results mark a substantial turnaround from a pretax loss of 25.4 million pounds in 2022 and a pretax profit of 40 million pounds in 2021.

Timely Financial Reporting

Also read: ANGLO-AMERICAN SHARES DROP AFTER FIRE AT AUSTRALIAN COAL MINE

Revolut filed these results ahead of the September deadline, marking the first time in three years that it published its accounts on schedule.

The company had previously faced delays in releasing its 2021 and 2022 accounts, drawing scrutiny from regulators. Tuesday’s timely report is seen as a positive step forward.

Victor Stinga, Revolut’s interim chief financial officer, emphasized the importance of improved financial controls.

“Improving financial controls and making sure we bolster our team, being able to release these results within six months, is part of that journey. So we are taking steps in making sure that our control environment trends towards the level you require as a public company,” Stinga told Reuters.

Public Listing Prospects

Revolut has signaled its aim to list publicly, although Stinga declined to comment on a specific timeline for an IPO. The company is currently seeking a more than $40 billion valuation in a $500 million share sale, up from the $33 billion valuation achieved in a 2021 fund raise.

Banking Licence Application

Revolut has applied for a UK banking license but has been awaiting approval for three years. UK CEO Francesca Carlesi stated that the application was “progressing well” but acknowledged that there are “a lot of steps” in the process.

“We are by nature optimistic but you know at the same time, I really don’t think we should put any timeline to this,” Carlesi said.

CEO Nikolay Storonsky expressed confidence in an interview with CNBC about the company’s chances of being granted a UK license.

Conclusion

Revolut’s impressive financial performance in 2023 underscores its strong market position and growth potential.

With timely financial reporting and a focus on securing a UK banking license, Revolut is poised to solidify its status as a leading player in the fintech industry.