Revolut, the London-based fintech giant, has announced a significant leap in profitability for 2023 and expressed confidence in obtaining a UK banking license, according to the financial report published this week.

Revolut Reports Record Revenue and Profit

The digital banking platform reported a pre-tax profit of £438 million for 2023, marking a substantial turnaround from its £25.4 million loss in the previous year. This financial milestone comes as Revolut continues its pursuit of a full UK banking license, a process that has been ongoing for over three years.

The company's revenue surged by 95% to £1.8 billion, compared to £922 million reported a year earlier. Interest income now accounts for approximately 28% of total revenue. Revenues are expected to be even higher in the future, as the company plans to generate $370 million from advertisements alone by 2026.

After deducting all tax and credit costs, the net profit stood at £344 million, significantly exceeding the modest profit of just under £6 million in 2022.

“In 2023, we took our biggest steps yet on that journey. We accelerated customer growth and increased the adoption of our products across the board, driving a record year for Revolut financially,” Nik Storonsky, the CEO and Co-Founder of Revolut, commented in the report published on Tuesday.

It's worth noting that Revolut has previously published its financial reports with significant delays. For example, we only learned about the results from two years ago at the end of 2023. Currently, the company has taken considerably less time to release its numbers, which may be a result of preparations for obtaining a license in the United Kingdom.

Strong User Growth and The UK License Plans

The fintech firm's strong financial performance was driven by visible user growth and revenue diversification. Revolut added 12 million new customers in 2023, bringing its total user base to over 35 million globally.

“We added 11.8 million new customers in 2023, more than in any prior year in our history, consolidating our market-leading position with 38.0 million customers globally by year-end,” added Victor Stinga, the Chief Financial Officer at Revolut.

Revolut's pursuit of a UK banking license is seen as crucial for its expansion plans in its home market. The license would allow the company to offer a broader range of financial products, including loans and mortgages, potentially capitalizing on the current high-interest rate environment.

As Revolut awaits regulatory approval, the company continues to operate as a licensed electronic money institution in the UK. The firm has reportedly addressed key regulatory concerns, including restructuring its share classes to align with the Prudential Regulation Authority's requirements.

Preparing for a license, the company has moved its base to the heart of London's financial district, capitalizing on the fact that large banks are vacating the area en masse. Revolut is setting up a new base in the YY London building in Canary Wharf.

At the same time, the company plans to increase its employment by 40% over the year, reaching 11,500 employees in 2024. As stated in the 2023 report, the company certainly does not lack willing hands to work: just last year, it received 1.9 million job applications.