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Revolut tops $1 billion in profit as crypto trading, growing user base fuel growth

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April 24, 2025
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Revolut tops $1 billion in profit as crypto trading, growing user base fuel growth
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British fintech firm Revolut has recorded more than $1 billion in annual profit for the first time, marking a significant milestone for the company as it prepares to roll out its UK banking arm later this year.

The app-based financial services provider posted net profit of £1.1 billion ($1.5 billion) for the year ending December 31, 2024 — a 149% rise from the previous year.

Revenues surged 72% to £3.1 billion, buoyed by strong performance across all major segments.

Founded in 2015, Revolut has evolved into one of Europe’s most prominent fintech companies, with a growing presence in retail banking, wealth management, and business services.

Its latest results underscore the company’s ambition to shift from a high-growth startup to a mainstream financial institution.

Wealth unit and deposits fuel performance

The sharp increase in annual profit was largely driven by Revolut’s wealth division, which includes its trading platforms for stocks and cryptocurrencies.

Revenue from this unit soared 298% year-on-year to £506 million, bolstered by a rebound in crypto trading and a broader uptick in retail investor activity.

The firm’s growing customer base also played a pivotal role. Revolut added nearly 15 million new users in 2024, pushing its total user count past the 50 million mark.

This expansion helped boost revenue from card payments and interest-bearing deposits — the company’s two largest income sources.

Loan book growth also contributed significantly. Lending balances rose 86% to £979 million, while customer deposits increased to £30 billion from £18 billion in 2023.

Interest income jumped 58% to £790 million as a result.

“2024 was another landmark year for Revolut, with continued growth across all key business areas,” CEO and co-founder Nik Storonsky said.

UK banking license paves way for expansion

The profitability milestone comes as Revolut readies the full-scale launch of its UK bank.

The company was granted a restricted license by the UK’s Prudential Regulation Authority (PRA) in July 2024, ending a multi-year regulatory review that began in 2021.

Under current rules, Revolut is in a 12-month “mobilization” period, where it must establish banking infrastructure before transitioning to full operations.

The company is still awaiting regulatory approval to transfer all 11 million UK customers to its new bank entity later this year.

Once launched, the UK bank will enable Revolut to offer secured lending products including overdrafts, mortgages, and credit cards.

These services are expected to further diversify income streams and strengthen the company’s competitive position against traditional high street banks.

According to CFO Victor Stinga, Revolut is in constant coordination with the PRA and the Financial Conduct Authority (FCA).

“As you can imagine, at this scale, it’s a thorough process,” he told CNBC. “We feel like we’re making great progress.”

Challenges in transitioning to a bank

Despite strong user growth, Revolut continues to face challenges in converting its customer base into long-term, primary account holders.

A key part of the strategy includes offering government-backed deposit protection through the Financial Services Compensation Scheme, which insures customer deposits up to £85,000.

“Customers trust banks, so it means customers on this transition will use Revolut as a primary bank account,” Stinga said, noting that new banking capabilities will unlock the next phase of product offerings.

The company also faces steep competition from other digital challengers.

Rivals Monzo and Starling Bank obtained their full UK banking licenses in 2017 and 2016, respectively, giving them a head start in the market.

The firm is focusing on its paid subscription services, which generated £423 million in 2024, a 74% increase over the prior year.

In addition, its business services segment now accounts for 15% of total revenues — evidence of Revolut’s push to build a broad financial ecosystem.

Francesca Carlesi, head of Revolut’s UK operations, previously said that the move to become a fully licensed bank is a crucial step toward the company’s long-term goal of launching an initial public offering.

“My main strategic focus is making Revolut the primary bank for everybody in the UK,” Carlesi told the Wall Street Journal.

The post Revolut tops $1 billion in profit as crypto trading, growing user base fuel growth appeared first on Invezz

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