Monzo hits 7.5 million customers, annual losses remain stable

Monzo's latest annual report is out and it mentions the word 'profit' or 'profitability' 20 times

The bank saw its losses narrow to £116.3m for the year up to March 2023, a fall of just 2 per cent, according to the report.

Despite the broadly similar figure to the £119m loss recorded up to March 2022, Monzo now says it is profitable on a monthly basis.

"Our losses remained large this year, which was expected as we continued to invest and grow our business, resulting in higher costs. But we’ve seen the benefits of this investment throughout FY2023 as revenues grew significantly and I’m thrilled that since the end of our audited financial year, this momentum has continued and we’ve reached profitability," said Gary Hoffman, Monzo's chair.

"This will power the further investments we’re going to make to fuel our ambitions at home and abroad and to make money work for everyone," he added.

Monzo's revenues over the period jumped by 230 per cent, to £355.6m, compared with the previous year. CEO TS Anil, who has been in place as the bank's leader for three years, also noted Monzo's annualised revenue run rate reached more than £500m in March 2023 – a record high.

"Since closing our FY2023 audited accounts in February, we’ve continued on our trajectory of strong customer and revenue growth and we’ve now reached profitability," he said.

"In just eight years we’ve grown from startup to not just the UK’s leading digital bank, but the 7th largest UK bank by customer numbers, with more than 10 per cent of the UK population choosing to bank with Monzo. And there’s so much more to come," he added.