Monzo Achieves First Full Year of Profitability

Monzo, the British digital challenger bank, has reported its first full year of profitability for the fiscal year 2023-2024. The bank posted pre-tax profits of £15.4 million ($19.6 million), a sharp turnaround from a £116.3 million loss the previous year.

Monzo’s annual revenues surged to £880 million, more than doubling from £355.6 million in 2022. This significant revenue growth cements Monzo’s position as one of Britain’s largest digital banks, competing with rivals like Starling and Revolut, as well as traditional lenders such as HSBC and Barclays.

The profitability milestone follows Monzo’s first month of profit reported last year, a significant recovery from 2020 when the bank faced doubts about its ability to continue operations early in the COVID-19 pandemic.

Monzo has experienced substantial growth recently, reaching a $5.2 billion valuation. This growth has been bolstered by a new investment product developed in partnership with asset management giant BlackRock.