British fintech Revolut tops $1 billion in revenue as income jumps 72%

LONDON — British fintech agency Revolut on Thursday introduced it topped $1 billion in annual revenue for the primary time, a serious milestone for the corporate because it readies the launch of its U.Ok. financial institution later this yr.

Revolut, which presents a variety of banking and monetary companies by way of an app, mentioned that web revenue for the yr ending Dec. 31, 2024, totaled £1.1 billion ($1.5 billion), up 149% yr over yr. Revenues on the firm elevated 72% yr on yr to £3.1 billion, pushed by progress throughout totally different income streams.

Revolut’s wealth unit — which incorporates its inventory and crypto-trading companies — noticed outsized progress, with income surging 298% to £506 million, whereas subscriptions turnover jumped 74% to £423 million.

Revolut additionally noticed important progress in its mortgage guide, which grew 86% to £979 million. Coupled with a leap in buyer deposits, this contributed to a 58% improve in curiosity earnings, which totaled £790 million.

Revolut’s monetary milestone arrives at a crucial time for the just about decade-old-firm. The digital banking unicorn has been making ready a transition to changing into a completely operational financial institution within the U.Ok. after securing a banking license final summer time.

It was granted a banking license with restrictions in July 2024 from the U.Ok.’s Prudential Regulation Authority, bringing an finish to a prolonged software course of that started again in 2021.

The restricted license signifies that Revolut is now within the “mobilization” stage, the place it’s specializing in constructing out its banking operations and infrastructure within the run-up to a full launch. The interval usually lasts about 12 months.

Revolut continues to be awaiting approval from regulators to switch all 11 million of its U.Ok. customers to a brand new banking entity this summer time. As soon as totally up and operating, the agency will have the ability to start providing loans, overdrafts and mortgages, opening up the trail to new earnings streams.

Victor Stinga, Revolut’s chief monetary officer, informed CNBC on Thursday that the corporate’s purpose is to formally launch its U.Ok. financial institution later this yr.

“As you may think about, at this scale, it is a thorough course of, and we simply pay a variety of consideration to it,” Stinga mentioned. “We work very intently on an in depth contact with the PRA [Prudential Regulation Authority] and the FCA [Financial Conduct Authority] on it. We really feel like we’re making nice progress on it.”

Stinga mentioned {that a} large benefit of changing into a financial institution within the U.Ok. is capacity to begin accepting deposits protected by authorities ensures. Licensed banks are lined by the Monetary Companies Compensation Scheme, which implies their clients can declare as much as £85,000 if a lender goes out of enterprise.

“Prospects belief banks, so it means clients on this transition will use Revolut as a main checking account,” Stinga mentioned.

Lending is arguably “the largest roadmap merchandise that this unlocks,” Revolut’s CFO mentioned, including that the agency is launching bank cards and private loans, much like the merchandise it already presents within the European Union beneath a separate EU banking license.

Francesca Carlesi, Revolut’s U.Ok. boss, beforehand informed the Wall Road Journal that Revolut views its journey to changing into a U.Ok. financial institution as a vital step in its world growth and eventual IPO. “My essential strategic focus is making Revolut the first financial institution for everyone within the U.Ok.,” she informed the WSJ.

It has a steep hill to climb — rivals Monzo and Starling have had a prolonged head begin on Revolut. Monzo obtained its full banking license in 2017, whereas Starling was granted its personal allow in 2016.