Monzo smashes £1bn revenue barrier as it reports second consecutive year of profit - Business Live

Professional ServicesMonzo smashes £1bn revenue barrier as it reports second consecutive year of profitThe UK's seventh largest bank by customer numbers, Monzo, has been the buzz of the City

in recent weeks after reports it was gearing up for a blockbuster £6bn IPO, and the firm's latest financials will do little to dampen that

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UK fintech titan Monzo has announced its second consecutive year of profitability, with the neobank's revenue surpassing £1bn for the first time.

The company's revenue soared by 48 per cent to £1.2bn, as it reported significant growth across all business sectors amid rising speculation of a London flotation in the upcoming

months, as reported by City AM.

Customer deposits saw a 48 per cent increase to £16.6bn, while total assets surged by 41 per cent to £18.3bn.

This growth enabled Monzo's pre-tax profit to more than quadruple to £60.5m. The fintech posted an adjusted profit – excluding the one-off £53.4m cost of a secondary share sale – of

£113.9m.

This was achieved despite total expenses increasing by 47 per cent to £687.4m. Monzo's cost-to-income ratio, a crucial financial metric indicating its efficiency and profitability as a

business, remained high at 73 per cent, reflecting its ambitious growth pursuits.

The fintech reported a five per cent rise in headcount, increasing to 3,934 from 3,736 last year.

Provisions for bad loans skyrocketed to £251.2m, up from £204m last year. Meanwhile, credit loss expenses decreased to £152,595, down from 176,868 despite a 25 per cent rise in customers.

The company's customer base expanded to 12.2m for the year, up from 9.8m.

This was facilitated by a series of new product launches for the fintech, including Monzo Perks, Monzo Extra and Monzo Max, which helped fuel a 38 per cent increase in fees and commission

revenue to £329.2m.

Monzo has been creating a stir in the City amid rumours that it's preparing for a major £6bn IPO.

The digital bank has been widely tipped for a London flotation, with both Government and London Stock Exchange representatives wooing the company in an effort to revitalise the struggling

market.

Sky News reports that Monzo has engaged Morgan Stanley bankers for discussions with potential investors ahead of a possible listing, which some have suggested could occur as soon as early

2026.

TS Anil, Monzo's Chief Executive, commented: "We've grown from a startup challenging the status quo, to a household name, a leading brand and the UK's 7th largest bank by

customer numbers."

He added: "Our growth across the year is reinforced by the growing trust customers have in Monzo as they bring more and more of their financial lives to us."

However, Anil dismissed the IPO rumours, telling the press that it was "way too early" to think about going public.

"An IPO is not something we're focused on right now.

"We're orientated entirely around scaling our business and taking it to greater heights."

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