Revolut today announced that the challenger bank will post record profits in 2023 and appeared to soften its stance on a potential London stock market listing.
The fintech company, led by Nick Storonski, reported profits of £438 million in 2023, compared with a loss of £25 million the previous year.
Revenue soared from $1.1 billion to $2.2 billion, and Revolut said it added about 12 million customers during the year, bringing its customer base to 45 million now.
Revolut’s profits were boosted by new customers, rising interest rates, and “continued growth in higher-margin revenue streams.”
Revolut’s interest income has soared to £500 million by 2023, from £83 million the previous year.
Other highlights included a 53% increase in subscription revenue to $303 million and a 59% increase in card and interchange revenue to $605 million.
Revolut chairman Martin Gilbert told the Financial Times that the company welcomed upcoming changes to UK stock market listing rules.
He said:
“All the moves the regulators are making are good. They are allowing founder-led companies like Revolut to go public without a choice.”
“But again, let’s see how it all plays out. The evidence will certainly be in what happens in the future.”
Gilbert’s comments contrast with those of Storonski, who has previously criticised the UK as a place to do business and said Revolut would choose the US if it were to list.
In an effort to reverse an alarming decline in the number of UK listings, the FCA is considering changes to make it easier for companies to list in the UK, including merging the London Stock Exchange’s “premium” listings with less onerous standard listings.
Commenting on the results, Storonski said:
“This year we took our biggest step yet towards our mission of delivering the best products and the best customer experiences at great value to our customers around the world.
“Every day, our products create value for new customer segments and new global markets. In addition to bringing the Revolut app to new markets and customers around the world, we remain focused on our ongoing application for a UK banking licence.”
“Despite reaching 45 million retail customers globally just six months into 2024, Revolut is set to grow exponentially in 2024 and beyond, continuing to redefine financial services as we know it.”
Revolut is still awaiting a decision on whether its UK banking license has been approved.
