Revolut Profits Spike More Than Double in 2024 to £1.3B Thanks to Crypto Trading Boom

Revolut has reported a record-breaking financial year, surpassing $1 billion in annual profit for the first time as the fintech giant prepares to launch its full banking operations in the U.K. later this year.

The London-based firm announced on Thursday that its net profit for 2024 reached £1.1 billion ($1.5 billion), marking a 149% increase compared to the previous year.

Total revenue also soared by 72%, climbing to £3.1 billion, driven by robust growth across multiple business segments.

A standout performer was Revolut’s wealth division, which includes stock and crypto trading services. The unit saw a 298% surge in revenue, generating £506 million amid a resurgence in cryptocurrency activity.

Subscription services also contributed significantly, with turnover rising 74% to £423 million.

Additionally, Revolut’s loan book expanded by 86% to £979 million, while a sharp rise in customer deposits fueled a 58% increase in interest income, totaling £790 million.

This financial momentum comes at a pivotal time as Revolut transitions into a fully licensed bank in its home market.

After a three-year application process, the company secured a restricted banking license from the U.K.’s Prudential Regulation Authority (PRA) in July 2024.

Revolut awaits final regulatory approval to migrate its 11 million U.K. customers to its new banking entity.

Revolut is the #1 finance app in Europe — once again (a thread )

Thanks to your trust, we set a new benchmark in 2024. pic.twitter.com/lf7fAMMoel

Once operational, the firm will offer traditional banking products such as loans, overdrafts, and mortgages, unlocking new revenue streams.

However, Revolut faces stiff competition from established digital banks like Monzo and Starling, both of which secured full licenses years earlier.

“We improved our economics and accelerated product adoption, resulting in our 4th consecutive year of profitability, and earning us the status of most valuable private technology company in Europe,” Founder and CEO Nik Storonsky said.

“We welcomed new investors through a secondary share sale at an implied $45 billion valuation.”

In May last year, Revolut introduced its standalone crypto trading platform called Revolut X, catering to UK retail customers.

At the time, the company said it designed the new platform to compete with leading crypto exchanges by providing easy on/off-ramping and low fees.

Although initially targeted at professional traders, Revolut X is accessible on desktop for all UK users with a Revolut retail account.

Traders on Revolut X can engage in more than 100 token trades with fixed fees of 0% for makers and 0.09% for takers, irrespective of trading volume.

Revolut’s introduction of Revolut X came after the launch of Revolut Ramp in March, which enables users to purchase crypto directly in their Web3 wallets through a partnership with MetaMask developer Consensys.

In November, the firm expanded its crypto exchange Revolut X to serve customers in 30 additional European countries.

The post Revolut Profits Spike More Than Double in 2024 to £1.3B Thanks to Crypto Trading Boom appeared first on Cryptonews.