Revolut Doubles Profits to $1.3 Billion Driven by User Growth and Crypto Trading Boom
In a groundbreaking annual report, fintech giant Revolut has announced a significant doubling of its pre-tax profit to £1 billion ($1.3 billion) for the year 2024. This remarkable growth can be attributed to a surge in customer acquisition, with the company adding nearly 15 million new users, alongside a substantial increase in cryptocurrency trading activities.
Record Growth Figures
According to the report released on April 24, 2024, Revolut’s profits spiked from £438 million in the previous year, while revenues experienced a major leap, rising to £3.1 billion from £1.8 billion in 2023. This impressive performance marks a pivotal year for Revolut, which has seen considerable changes and enhancements across its offerings.
A standout contributor to the company’s financial success was its wealth division, encompassing stock and cryptocurrency trading. This segment generated £506 million in revenue, reflecting an almost fourfold increase compared to 2023, primarily driven by a rebound in crypto trading activity.
User Base Expansion
The expansion of Revolut’s customer base has played a crucial role in its revenue growth. The addition of close to 15 million new users brought the total number of customers to over 50 million. This substantial increase has resulted in heightened revenues from key income sources such as card payment fees and interest accrued on deposits.
Founder and CEO Nik Storonsky commented on the successful year, stating, "2024 was another landmark year for Revolut, with continued growth across all key business areas." This sentiment underscores the company’s strategic efforts to capitalize on user engagement and expansion.
Acquisition of UK Banking License
Another significant development for Revolut in 2024 was the acquisition of a long-sought UK banking license, granted in July after a lengthy three-year regulatory process. This license enables Revolut to broaden its lending services to include essential offerings such as credit cards and buy-now-pay-later products, with plans for mortgage offerings currently being tested.
"Receiving a UK banking license (with restrictions) paves the way for future product enhancements in our home market," Storonsky noted, highlighting the potential for ongoing growth in lending services.
New Product Offerings
In May 2024, Revolut launched Revolut X, a dedicated desktop platform targeting experienced cryptocurrency traders. This new exchange allows trading of 100 tokens with low fees and efficient real-time transaction capabilities. Plans are in place to expand this offering to mobile platforms in 2025. Additionally, in November, Revolut introduced its crypto exchange across 30 markets in Europe, including nations such as Belgium, Cyprus, and Denmark. This expansion reflects the company’s commitment to enhancing its digital asset services, offering customers access to a diverse range of investment options including cryptocurrencies, stocks, ETFs, bonds, and commodities within its app ecosystem.
Challenges Ahead
Despite the impressive growth, Revolut is facing challenges in converting its app users into primary banking customers. As increasing deposit volumes are vital for future lending operations and competition with traditional retail banks, attracting and retaining customers remains critical. In 2024, the total customer balances rose to $39.8 billion from $23.9 billion, indicative of the growing trust users place in the platform.
Furthermore, Revolut is focusing on expanding its premium subscription services. Revenue from paid plans has surged by 74% year-on-year to reach £423 million, demonstrating the company’s efforts to diversify its income and strengthen its financial position.
Future Aspirations
Looking ahead, Storonsky has indicated ambitious goals for Revolut, with plans to achieve a milestone of 100 million daily active users across 100 countries. This vision aims to solidify Revolut’s position as a leading global fintech player, poised to innovate and expand in the evolving financial landscape.
As Revolut continues to build on its successes, the company remains committed to enhancing user experiences while navigating the complexities of the competitive fintech environment.
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