Revolut, recognized as Europe’s most valuable start-up, saw its profits more than double to £1 billion last year, according to its annual report published on Thursday. The company surpassed the milestone of 50 million customers and benefited significantly from a rise in cryptocurrency trading.
The report detailed that Revolut’s pre-tax profits rose from £438 million the previous year, with revenues increasing to £3.1 billion from £1.8 billion. This record profitability was driven by an increase in customer numbers, which enhanced its two primary revenue sources: fees from card payments and interest from deposits. Revolut added nearly 15 million new customers in the past year.
Founder and CEO Nik Storonsky remarked that 2024 was a remarkable year for Revolut, highlighted by obtaining a banking license in its home market and reaching a $45 billion valuation. Storonsky noted the company is now aiming for 100 million daily active customers across 100 countries.
The fintech’s wealth business, which includes stock and digital asset trading, generated £506 million in revenues, nearly quadrupling from 2023. This surge in crypto trading contributed to Revolut’s first annual profit in 2021, although revenues from crypto decreased the following year.
Despite attracting millions of customers with its mobile app, Revolut faces the challenge of persuading users to adopt it as their primary banking option. Accumulating a critical mass of deposits is vital for unlocking funding for loans and competing with major retail banks.
Throughout the year, Revolut’s total customer balances increased from £18 billion to £30 billion. The company reported a £979 million loan book, which includes credit cards and buy-now-pay-later products, and obtained a UK banking license with restrictions last July after a three-year process with regulators. This milestone allows Revolut to introduce lending products in its home market, and the company is internally testing mortgages.
Revolut is also working to expand its base of paying subscribers, with revenue from premium subscription plan fees rising 74 percent year-over-year to £423 million. Additionally, its business offering, targeting corporate customers, now represents about 15 percent of the company’s revenues.
