British fintech company Revolut reported a record pretax profit of £438 million ($553.81 million) in 2023, driven by significant user growth and a surge in interest-related income.
This announcement, made on Tuesday, marks an important milestone as Revolut strives to solidify its position as Europe’s most valuable startup.
These results were the first to be timely published in three years, following delays in releasing the 2021 and 2022 accounts.
Revolut has previously faced scrutiny from regulators due to issues with its financial reporting, but the company hopes the latest figures represent progress.
Although Revolut has expressed intentions to go public, interim CFO Victor Stinga did not provide a timeline for an IPO.
“Improving financial controls and making sure we bolster our team, being able to release these results within six months, is part of that journey.
“So we are taking steps in making sure that our control environment trends towards the level you require as a public company,” Stinga told Reuters.
Revolut’s revenue nearly doubled to £1.8 billion in 2023, exceeding forecasts, with interest income rising to £500 million from £83 million in 2022.
The company had posted a pretax loss of £25.4 million in 2022 after a pretax profit of £40 million in 2021.
This growth comes at a crucial time, as Revolut seeks a valuation exceeding $40 billion in a $500 million share sale, up from its $33 billion valuation in 2021.
Despite applying for a UK banking licence three years ago, Revolut is still awaiting approval. UK CEO Francesca Carlesi told Reuters that the application is “progressing well” but emphasized the complexity of the process.
“We are by nature optimistic but you know at the same time, I really don’t think we should put any timeline to this,” she said.
CEO Nikolay Storonsky expressed confidence about obtaining the licence in an interview with CNBC.
Revolut continues to work closely with UK regulators on its banking licence application, according to its annual report.
Founded in 2015, Revolut offers financial services without physical branches and has grown its global customer base to 45 million, with a nearly 45% increase last year.
The fintech industry in Britain has experienced a funding crunch, with investors becoming more cautious of high pandemic-era valuations and pushing for profitability.
When Revolut finally published its 2021 accounts in March 2023, auditor BDO was unable to verify three-quarters of the £636 million in revenue.
In 2023, Revolut’s customer loan book grew to over £500 million, up from £204 million the previous year.