British fintech Revolut achieved a record pretax profit of £438 million in 2023, driven by strong user growth and rising interest income.
Revolut reported a record pretax profit of 438 million pounds ($553.81 million) in 2023 due to strong user growth and rising interest-related income, as it seeks to secure its position as Europe’s most valuable startup.
Filed ahead of a September deadline, these results mark Revolut’s first timely publication in three years, following prior delays.
The company, previously scrutinized for financial reporting issues, hopes Tuesday’s numbers mark a step forward.
Revolut aims to go public; however, interim CFO Victor Stinga did not comment on the IPO timeline.
“Improving financial controls and strengthening our staff, as well as being able to release these findings within six months, are all part of the process. So we are taking initiatives to ensure that our control environment trends towards the level you expect as a public company,” Stinga said.
The company’s 2023 revenue nearly doubled to £1.8 billion, driven by interest income soaring from £83 million to £500 million.
Revolut shifted from a £40 million pretax profit in 2021 to a £25.4 million pretax loss in 2022.
The timely growth boosts Revolut’s $40B valuation goal in a $500M share sale, surpassing its 2021 $33B valuation. Awaiting UK banking license.
UK CEO Francesca Carlesi told Reuters that Revolut’s banking license application is “progressing well,” but involves “many steps.”
“We are by nature optimistic but you know at the same time, I really don’t think we should put any timeline to this,” she said.
In a CNBC interview, Revolut CEO Nikolay Storonsky expressed confidence about the company’s chances of securing a UK license.
Revolut is “continuing to collaborate closely” with UK regulators on its bank license application, according to the annual report.
Founded in 2015, Revolut, a British fintech company, has 45 million global customers, growing by nearly 45% last year.
Transitioning from pandemic-era highs, Britain’s fintech sector has encountered a funding squeeze, demanding profitability from skeptical investors.
Revolut’s 2021 accounts, published in March 2023, revealed that BDO couldn’t verify 75% of £636M revenue.
Revolut’s customer loan book surged to over 500 million pounds in 2023, marking a significant increase from 204 million in the previous year.
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