Britain’s Revolut surges to record profit as it seeks US$40 billion valuation

LONDON: British fintech firm Revolut made a sage pretax income of £438 million (US$553.81 million) in 2023 on solid particular person growth and hovering pastime-associated profits, it said on Tuesday (Jul 2), because it appears to be like to cement its characteristic as Europe’s most treasured startup.

The outcomes, filed earlier than a September time restrict, were the main to be published on time in three years, after Revolut had delayed newsletter of both its 2021 and 2022 accounts.

The firm has confronted issues with its financial reporting beforehand, drawing scrutiny from regulators, nonetheless is hoping Tuesday’s numbers are a step ahead.

Revolut has signalled its scheme to list publicly nonetheless the firm’s intervening time chief financial officer Victor Stinga declined to comment on any timeline for an IPO.

“Making improvements to financial controls and guaranteeing we bolster our group, being ready to liberate these outcomes inner six months, is a part of that plug. So we are taking steps in guaranteeing that our preserve a watch on atmosphere traits in the direction of the extent you require as a public firm,” Stinga suggested Reuters.

The firm’s income practically doubled to a forecast-beating £1.8 billion in 2023, helped by pastime profits that soared to £500 million from £83 million in 2022, according to its annual file. Revolut made a pretax lack of £25.4 million in 2022 after a pretax income of £40 million in 2021.

The growth comes at an opportune time, with the firm within the hunt for a more than US$40 billion valuation in a US$500 million part sale, up from the US$33 billion valuation hit in a 2021 fund elevate.

Revolut has applied for a UK banking licence nonetheless three years on is aloof expecting approval.

UK CEO Francesca Carlesi suggested Reuters that Revolut’s banking licence utility was as soon as “progressing neatly” nonetheless that there are “plenty of steps” within the strategy.

“We are by nature optimistic nonetheless you realize on the same time, I in point of fact don’t judge we could perchance aloof build any timeline to this,” she said.

In an interview with CNBC, Revolut CEO Nikolay Storonsky said the firm was as soon as feeling assured about its possibilities of being granted a UK licence.

Revolut is “persevering with to work carefully” with UK regulators on its UK financial institution licence utility, the annual file said.

Essentially based in 2015, Revolut is one of a handful of fintech companies to have emerged in Britain over the final decade, offering financial providers and products with out having physical branches. It has forty five million customers globally, with buyer numbers increasing by nearly forty five per cent closing year.

Britain’s fintech industrial has confronted a funding crunch in present years as investors have develop into more sceptical of sky-excessive pandemic-technology valuations and build tension on companies to acquire a living.

When Revolut’s 2021 accounts were eventually published in March 2023, auditor BDO said it was as soon as unable to independently take a look at three quarters of the £636 million of income.

Revolut’s buyer loan e-book grew to more than £500 million in 2023, up from 204 million the old year, its most up-to-date file said.