Monzo has posted its first full year of profit after more than doubling revenues.
It joins fellow digital banks Revolut and Starling in the black after surpassing 400,000 business accounts. It is closing on 10 million total customers.
Monzo, founded in 2015, reported a 拢15.4m pre-tax profit in the year to the end of March, compared to a 拢116.3m loss the year before. Revenues hit 拢880m.
The London FinTech – which offers overdrafts, unsecured personal loans and buy now, pay later credit card Monzo Flex – said its loan book had grown 84% to 拢1.4 billion.
However it raised its provisions for expected credit losses to 拢176.9m, up from 拢101.2m, which CFO James Davies blamed on 鈥済lobal unrest, inflation and [high] interest rates鈥� all of these factors increase the financial pressure on our customers鈥� disposable incomes and the risk they鈥檙e unable to repay us鈥�.
鈥淚n nine short years, Monzo has come from nowhere to a position where one in six UK adults has a Monzo account and we鈥檙e now the seventh largest bank in the UK by customer numbers,鈥� said CEO TS Anil.
鈥淭his was a landmark year of record growth for Monzo.鈥�
Monzo, which earlier this year raised 拢500m in a funding round – valuing the company at 拢4bn – now plans to open a hub in Dublin ahead of expansion into Europe. It is also eyeing a second launch in the United States after the first one was aborted.
鈥淲e鈥檙e a rare company that has delivered scale, growth and profitability. We have the right amount of capital to go after the opportunity ahead of us,鈥� added Anil.