Digital bank Monzo posts first full year of profit after more than doubling revenue

Monzo, a British digital challenger bank, reported profitability for the first full year on Monday.

The fintech startup reported in its annual financial results that its pre-tax profits were £15.4 million ($19.6 million) in the fiscal year 2023-2024, up from a loss of £116.3 million the previous year.

Monzo reported full-year revenues of £880 million, up from £355.6 million in 2022. That represented a more than twofold increase.

Monzo, one of Britain’s largest digital banks, competes with Starling, Revolut, and established lenders like HSBC and Barclays.

Last year, Monzo announced its first month of profit. This marked a significant shift from 2020, when Monzo warned of doubts about its ability to continue “as a going concern” early in the Covid-19 pandemic.

The company has experienced significant growth in recent years. This year, its valuation reached $5.2 billion. This followed the launch of an investment product in collaboration with BlackRock, the asset management giant.