image credit: revolut
On Tuesday, British fintech company Revolut reported a record pretax profit of 438 million pounds ($553.81 million) in 2023 due to strong user growth and rising interest-related income. It hopes to become Europe’s most valuable startup.
After Revolut delayed publishing its 2021 and 2022 accounts, the results, filed ahead of a September deadline, were the first printed on time in three years.
The corporation hopes Tuesday’s statistics are a step forward after authorities criticized its financial reporting.
Revolut wants to list publicly, but interim CFO Victor Stinga wouldn’t comment on an IPO schedule.
Improving financial controls, strengthening our staff, and releasing outcomes in six months are part of that path. We are adjusting our control environment to meet your needs as a public firm “Stinga told Reuters.
According to its annual report, interest income rose to 500 million pounds from 83 million pounds in 2022, almost doubling the company’s revenue to 1.8 billion pounds in 2023. Revolut lost 25.4 million pounds pretax in 2022 after making 40 million in 2021.
The corporation is seeking a greater than $40 billion value in a $500 million share offering, up from $33 billion in a 2021 fund drive.
Three years after applying for a UK banking licence, Revolut is still waiting.
UK CEO Francesca Carlesi told Reuters that Revolut’s banking licence application is “progressing well” but requires “a lot of steps”.
“We are by nature optimistic but you know at the same time, I really don’t think we should put any timeline to this,” remarked.
Revolut is “continuing to work closely” with UK regulators on its bank licensing application, the annual report said.
Revolut, a 2015 fintech startup in Britain, provides banking services without branches. Globally, it boasts 45 million customers, up roughly 45% last year.
Since investors became wary of sky-high pandemic-era values and pressured startups to become profitable, Britain’s fintech industry has struggled to raise funds.
When Revolut’s 2021 accounts were released in March 2023, auditor BDO stated it couldn’t verify three quarters of the 636 million pounds of income.
The latest Revolut report showed that its customer loan book rose to almost 500 million pounds in 2023 from 204 million the year before.
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