British digital bank Monzo's annual profit surges, revenue tops $1.35 billion
FILE PHOTO: A smartphone displays a Monzo logo in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/Illustration/File Photo
(Reuters) -British digital bank Monzo reported revenue above 1 billion pounds ($1.35 billion) for the first time and a sharp rise in annual pretax profit on Monday, driven by strong growth in personal and business customer numbers.
The fintech company, which is reportedly gearing up for an initial public offering, posted a pretax profit of 60.5 million pounds for the year ended March 31, 2025, compared with 13.9 million pounds a year earlier.
Fiscal year 2024 marked the company's first profitable year.
The mobile app-based bank, launched in 2015, is one of several digital banks that have emerged in Britain to challenge the dominance of HSBC, Lloyds, Barclays and NatWest - the country's Big Four.
Monzo, which has more than 12 million customers, last year outlined plans to expand into Europe through Ireland and strengthen its presence in the United States.
Customer deposits increased 48% to 16.6 billion pounds for the year, the lender said.
Monzo has considered listing in either Britain or the United States but has not set a firm timeline or chosen a venue for an IPO, a person familiar with the company's plans told Reuters in March.
Sky News reported earlier this month that the lender was preparing to appoint bankers to spearhead its planned stock market floatation.
Last October, the British bank was valued at 4.5 billion pounds in an employee share sale to a group of investors, including Singapore's sovereign wealth fund.
($1 = 0.7388 pounds)
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Sherry Jacob-Phillips)
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