Neobank Giant Revolut Group published its annual report for 2024, providing what the company called for significant growth to all business departments and the fourth consecutive year of profitability.
Nik Storonsky, CEO of Revolut, said, said,
“In 2024 it was a milestone for rotation, not only we accelerated our customers’ growth, welcoming nearly 15 million new users worldwide, but critically, we also saw customers dealing deeper, adopting a wider range of our services both in our retailing and businesses.
“This performance has won us the regime of Europe’s most valuable private technology company, reflecting the confidence of existing and new investors in our trajectory, but we are simply starting, we make strong progress to 100 million daily active customers in 100 countries, leading to the UK.
Revolut 2024 Performance Notes
A powerful combination of revenue flows saw Revolut achieve strong financial results in 2024:
- Increase in revenue: Group revenue increased by $ 72% to $ 4.0 billion (£ 3.1bn), from $ 2.2 billion (£ 1.8 billion) in 2023, resulting in both the expansion of the customer base and the increase in product use.
- Income distribution: Growth was strong in all basic business departments:
- Card payments increased by 43% on an annual basis to $ 887 million (£ 694 million).
- Wealth increased by $ 298% to $ 647 million (£ 506 million), from $ 158 million (£ 127m).
- The FX increased by $ 58% to $ 540 million (£ 422 million), from $ 333 million (£ 267m).
- The turnover of subscriptions reached $ 541 million (£ 423cm), an increase of 74% on an annual basis of $ 303 million (£ 244m), powered by reinforced benefits from paid levels.
- Customer Residues & Borrowing: Total customers expanded by 66% to $ 38 billion (£ 30m), from $ 23 billion (£ 18bn) in 2023, based mainly on a strong increase in customer deposits and increased rest products (including those made externally with partnerships). Revolut maintained a prudent approach to balance sheet management, holding 62% of assets as cash and cash equivalents. At the same time, the customer loan portfolio increased by 86% annually to $ 1.2 billion (£ 979 million).
- Intent revenue increased by 58% on an annual basis to $ 1.0 billion (£ 790 million), compared to $ 621 million (£ 500 million) in 2023, resulting from the management of these increased deposits effectively and expanding loans.
- Profitability: This strong top -line growth translates into record profitability, marking the fourth consecutive year of net profitability:
- Profit before tax was $ 1.4 billion (£ 1.1 billion)
- Net profit increased to $ 1.0 billion (790 million £), from $ 428 million (344 million £) in 2023
- The net profit margin was raised to 26%, reflecting the functional leverage of the business model.
Acceptable Customer Increase and Delivery of Commitment
Revolut said that in 2024 it set a new record for customer acquisition, laying the foundations for future expansion and development.
- Record customer acquisition: Revolut welcomed almost 15m new customers worldwide, bringing the total to 52.5 m at the end of the year (38%increase).
- Leadership and market approach: Growth potential was strong throughout Europe. Revolut is now the most descended application in the financial category, first ranked in 19 countries and secured one point in the top three in 26 countries across the continent.
- Customer activity increased:
- Transaction volumes increased by 52% on an annual basis, approaching $ 1.3TN (£ 1.0tn).
- Monthly active retail users increased by 42% on an annual basis.
- The Revolut Business section showed equally strong momentum, with monthly active businesses increasing 56% on an annual basis. This contributed to the turnover of business customers reaching $ 592 million (£ 463 million), representing about 15% of total revenue and businesses as one of the biggest B2B Digital Banking players in Europe.
- Deepening of the commitment: Using value added services has increased significantly:
- The adoption of the paid plan increased by 45% on an annual basis.
- The new dedication program, Revpoints, has attracted users 6.6 million since it began in June 2024.
- Effective growth engine: Strong organic development continued, with over 65% of new retail customers involved through mouth or referrals. This was supplemented by an investment of $ 591 million (£ 463 million) in targeted sales, advertising and marketing activities.
- Significant opportunity to grow: Despite the significant scale, the penetration of the Revolut market remains about 15% of the adult population in basic markets, marking an important opportunity for continuous growth towards its mission.
Investing in Best Class Products, Customer Experience and Talent
Revolut said it continued the significant reinvestment of its platform, improving customer experience and strengthening its foundations.
- Advanced basal banking: Extensive basic local features such as IBAN in 7 European countries that boost Revolut’s primary account.
- Reinforced wealth and savings: Extensive savings and MMF availability (over 30 countries, attracting deposits of $ 12.3 billion (£ 9.8 billion) from launch), have begun the exchange
- Reinforced lending capabilities: He continued to develop the borrowing offer, based on a significant increase in the portfolio and the start of internal mortgages to support customers through important financial decisions.
- Transformed business revolution: Upgraded Revolut business significantly (RB5 redesigning, revolut billpay, flexible cash funds). Commercial payments of payments were tripled on the back of our increasing adoption and expansion of our acceptance solutions.
- Improved service and security: Increased customer service efficiency (achieving 80% faster analysis times) while prioritizing security, preventing about $ 800 million (£ 600 million) to possible fraud through enhanced controls.
- Enhanced governance and controls: Significant enhanced governance and compliance functions, including increased risk operation by 30% along with NED new appointments on UK councils and Revolut banks.
Revolut 2025 Outlook
Revolut said it is ready for continuous significant growth in 2025 and beyond that, it is driven by further platform improvements and global expansion.
- The bank is released in 2025: Priority in the official launch of our British bank alongside the start of our bank in Mexico.
- World Licensing & New Market Entries: Actively securing over 10 world licenses, escalating recent market registrations such as Brazil, preparation for our service in India (after the recent approval of the PPI license) and the search for further opportunities across America and Asia-Pacific.
- Product Innovation: Continuing to enhance the offers of basic banks, wealth, credit and lifestyle, including further development of mortgages, dedication programs, such as reviewing points and esims.
- Customer experience: Continuing investments in the efficiency and effectiveness of customer service, along with strong security and fraud measures.
- Global Development Track: Following a strategic course towards reaching 100 million daily active users in 100 countries, solidifying the world leadership of Revolut.