Monzo: Fintech unicorn tops £1bn in revenue on road to landmark IPO
UK fintech giant Monzo reported its second consecutive year of profitability on Monday after the neobank’s revenue climbed above £1bn for the first time.
The firm’s revenue increased 48 per cent to £1.2bn as it reported huge expansion across business arms amid rising expectations for a London flotation in the coming months.
Customer deposits jumped 48 per cent to £16.6bn, whilst total assets surged 41 per cent to £18.3bn.
The growth helped Monzo’s profit before tax balloon over 300 per cent to £60.5m. The fintech recorded an adjusted profit – excluding the one-off £53.4m cost of a secondary share sale – of £113.9m.
This came despite total expenses rising 47 per cent to £687.4m. Monzo’s cost-to-income ratio, a key financial metric indicating its efficiency and profitability as a business, remained high at 73 per cent, reflective of its high growth pursuits.
The fintech reported a five per cent rise in headcount, rising to 3,934 from 3,736 last year.
Customers rise as credit losses fall
Bad loans provisions soared to £251.2m, rising from £204m last year. Meanwhile, credit loss expenses decreased to £152,595, down from 176,868 despite a 25 per cent rise in customers.
The company’s customer base swelled to 12.2m for the year, up from 9.8m.
This was on the back of a fleet of new product launches for the fintech, including Monzo Perks, Monzo Extra and Monzo Max, which helped fuel a 38 per cent in crease in fees and commission revenue to £329.2m.
Monzo has been the buzz of the City in recent weeks after reports it was gearing up for a blockbuster £6bn IPO.
The fintech has hotly being tipped for a London-listing with Government and London Stock Exchange officials courting the business in hopes for a boost to the embattled market.
The firm has called in bankers from Morgan Stanley, according to Sky News, for a series of meetings with potential investors ahead of a listing, which was speculated to take place as early as the beginning of 2026.
Chief executive TS Anil said: “We’ve grown from a startup challenging the status quo, to a household name, a leading brand and the UK’s 7th largest bank by customer numbers.”
He said: “Our growth across the year is reinforced by the growing trust customers have in Monzo as they bring more and more of their financial lives to us.”
But Anil shot down speculation of a public float, telling reporters it was “way too early” to consider a listing.
“An IPO is not something we’re focused on right now.
“We’re orientated entirely around scaling our business and taking it to greater heights.”