Monzo reports first full-year profit amidst surging revenues

Monzo, the leading UK digital bank, has announced its inaugural full-year profit in its latest financial disclosures.

The neobank’s financial accounts reveal a remarkable turnaround, with revenues soaring due to an uptick in interest rates and a surge in subscriptions.

According to the released results today, Monzo recorded a pre-tax profit of £15.4 million for the 12-month period ending in March of this year, marking a significant departure from the £116 million loss incurred in the previous year.

The performance is attributed to a doubling of revenues, which escalated to £880 million from £355.6 million in the preceding year.

This growth trajectory was fueled in part by an 84% surge in Monzo’s loan book, which contributed approximately a quarter of its total revenue. Net transaction income also witnessed a substantial increase, surging by £60.9 million to reach £167 million.

One of the key drivers behind this remarkable financial upswing is the substantial growth in revenue from Monzo’s diverse subscription plans.

The bank reported a notable uptick in subscription revenue, which soared to £27.4 million, a significant jump from £19.5 million in the previous fiscal year.