Monzo hits monthly profitability

British digital bank Monzo has hit profitability for the first time.

Alongside hitting monthly profitability in the first two months of this year, Monzo saw revenue more than double to £355.6m this financial year — up from £154.2m last year.

It also added 1.6m new customers this year, bringing them up 7.4 million and more than 10 per cent of the UK population.

Losses were still significant at £116.3m, but they were down from 2022’s net loss of £119m.

“It's been a year of phenomenal achievements. Our customers sit at the heart of everything we do and we've seen growth across all areas of the business as they turn to us to improve their financial wellbeing and transform their relationship with money,” Monzo CEO TS Anil said.

In line with its significant addition of new customers, Monzo saw card spend increase by 38 per cent and deposits grow by 34 per cent to reach £6bn this year.

On track to reach full-year profitability by the end of next year, annualised revenue in April of 2023 exceeded £500m for the bank.

“We’re a stand-out player in banking and tech — and we’re firing on all cylinders to achieve our ambitions,” Anil added.

The seventh largest UK bank in terms of number of customers, Monzo’s customer base also grew on the business customer side, and there are now more than a quarter of a million business banking with Monzo.