Revolut’s profits triple to £123m, as appetite for fintech swells – CityAM : CityAM

Fintech firm Revolut’s gross profits have swelled threefold in 2020 to £123m, fuelled by people’s appetite for digital financial management growing amid the pandemic.

While its customer numbers jumped 45 per cent in the year ending 31 December, the firm’s adjusted revenues surged by 57 per cent to £261m, up from £166m in 2019.

Revolut, which now has over 15m customers, aims to launch loans and credit cards in Ireland later this year, its chief executive Nikolay Storonsky told RTE this week.

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Revenue in the first quarter of this year surged more than 130 per cent year on year, according to Revolut today, with gross profit growing over 300 per cent.

“As the extraordinary circumstances of 2020 drove the trend towards digital financial management we continued to innovate for customers to make their financial lives easier and accelerate daily use,” the CEO added.

Covid-19 pushed payment volumes to slump from March onwards, but a three per cent lift to new customer subscriptions buoyed the fintech firm.

As its customer base grew alongside daily use, Revolut’s customer balances rose by 96 per cent to £4.6bn by the end of the year – nearly double 2019’s figure of £2.4bn.

Expansion

Revolut Business launched across the US at the beginning of this year, as part of the firm’s global expansion plans.

The firm is also eyeing Australian and Japanese markets, with the launch of its services there too.

Meanwhile, Revolut is looking to India this year to build a new team based in the country, led by Indian CEO Paroma Chaterjee.

“In 2020 as we broadened our global footprint, strengthened our capital base, enhanced governance and bolstered executive management. These developments continue to provide a strong platform from which to launch new products,” chairman Martin Gilbert said.

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