Monzo records first full year of profitability as it eyes international expansion
UK-based digital challenger Monzo has announced its first full year of profitability, reporting a pre-tax profit of £15.4 million for the financial year ending 31 March 2024.
Monzo announces first full year of profitability
The company says a 2.5x increase in gross revenues to £880 million has helped it turn around the £116.3 million loss it recorded in FY2023.
This revenue growth has been fuelled by the diversification of its income streams, the bank says. Monzo has introduced several new products and services recently, including an “industry-first” Call Status fraud prevention tool, cashback rewards, its Monzo Investments offering, and an instant access savings account.
Furthermore, Monzo, the UK’s seventh-largest bank, reports that its customer deposits surged by 88% to reach £11.2 billion in the year. Additionally, it expanded its customer base by 2.3 million, including 200,000 new business clients.
To facilitate this growth, the digital bank has raised a healthy chunk of funding so far this year. In March, it secured $430 million in a round led by CapitalG, the independent growth fund of Google’s parent company Alphabet, which was later supplemented by an additional $190 million raised last month, resulting in a post-money valuation exceeding $5.2 billion.
Moving forward, Monzo has revealed its future aspirations, with intentions to broaden its presence in the US and European markets. The firm highlights that it views Ireland as a “gateway” into Europe, indicating that it is in the “early stages” of establishing a Dublin office.
In October last year, the company hired Conor Walsh, former head of global product at Square’s mobile payment service Cash App, as its new US CEO to drive its US expansion plans.
Moreover, Monzo intends to launch additional new products in the near future, including the expansion of its mortgage offerings and the introduction of a pensions product.
