Earnings

Digital bank Monzo posts first full year of profit after more than doubling revenue

A Monzo debit card being used at a payment terminal.
Monzo

Monzo, the British digital challenger bank, on Monday reported its first full year of profitability.

The fintech startup said in annual financial results that its pre-tax profits totaled £15.4 million ($19.6 million) in its 2023-2024 fiscal year, swinging to the black from a £116.3 million loss the year prior.

Monzo posted revenues of £880 million for the full year, up from £355.6 million in 2022. That marked a more than twofold increase.

Monzo is one of Britain’s largest digital banks, competing with the likes of Starling and Revolut as well as established lenders such as HSBC and Barclays.

Last year, Monzo reported its first month of profit. That marked a major turnaround from 2020, when Monzo warned it faced doubts over its ability to continue “as a going concern” early into the Covid-19 pandemic.

The company has seen significant growth in recent years. This year, it attained a $5.2 billion valuation. That came off the back on investments product in partnership with asset management giant BlackRock.

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