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Revolut greater than doubled its income to £1bn final yr, as Europe’s most beneficial start-up surpassed 50mn clients and benefited from a surge in cryptocurrency buying and selling.
In an annual report revealed on Thursday, Revolut mentioned its pre-tax income had elevated from £438mn a yr earlier. Revenues rose to £3.1bn, from £1.8bn.
Revolut’s report income had 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 mentioned it added nearly 15mn new clients final yr.
Founder and chief government Nik Storonsky mentioned “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 mentioned, including that the corporate was now focusing on 100mn every day energetic clients throughout 100 international locations.
A surge in crypto buying and selling additionally helped the fintech final yr. Revolut’s wealth enterprise, which includes inventory and digital asset buying and selling, introduced in £506mn in revenues — an almost fourfold enhance 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 tens of millions of consumers to its glossy cellular app, the fintech nonetheless faces a major problem in convincing them to make use of it for his or her main 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 biggest retail banks.
Revolut’s whole 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 dwelling market. Revolut has mentioned it’s testing mortgages internally.
The corporate can be searching for 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 clients, with its enterprise providing now accounting for about 15 per cent of revenues.