Revolut anticipates that its revenue for 2023 will continue its growth trajectory.
British online banking company Revolut has finally published its delayed 2022 annual financial earnings report on Friday, December 22.
The company reported a significant 45% increase in revenue for the year, reaching £922.5 million worth appropriately $1.2 billion. The pre-tax loss, in turn, dropped to £25.4 million ($32.2 million), a notable shift from the restated profit of £39.8 million in 2021.
Revolut’s 2022 Financials
The 2022 earnings results came after the firm received approval in September from the government agency Companies House to extend its 2023 financials till December. With the December deadline just a few days away, Revolut has successfully delayed its earnings call twice.
In an announcement on Friday, the company said interest income skyrocketed 50-fold to £83 million, driven by interest-rate hikes in 2022. Similarly, administrative expenses surged to £667.1 million in the same year, indicating a substantial increase from the £380 million spent in 2021.
Revolut said a card payment fraud incident in the US resulted in a £17 million loss, impacting its bottom line, with a net profit for 2022 standing at $5.8 million.
Furthermore, total staff costs significantly rose to £361.9 million from £219 million two years ago. The company also achieved a new record by adding 10 million new customers in 2022, bringing the total user base to 26.2 million by the end of the year.
“We strengthened our financial position, grew our customer base, launched multiple new products, expanded into new markets, and bolstered our risk, compliance and governance infrastructure,” said Nik Storonsky, CEO of the company.
According to the financial report, deposits for the year 2022 reached £12.6 billion, compared to £7.4 billion in the previous year. The company’s number of employees more than doubled, reaching a new height of 5,913 by the end of 2022. The company said it currently has approximately 8,000 staff. Also, director compensations nearly doubled, amounting to £1.1 million in 2022.
Revolut Expects to Generate $2B in Revenue for 2023
Revolut anticipates that its revenue for 2023 will continue its growth trajectory with the just published financials. The neobank expects to generate $2 billion in revenue for the year ending next week, accompanied by a double-digit net profit margin.
In 2021, the British online banking firm reached an impressive milestone of $33 billion in valuation. That same year, the company applied for a banking license in the United Kingdom. However, UK regulators are yet to decide on the application.
Storonsky also said in the annual report that the firm remains committed to the application. Securing the license would allow Revolut to extend its offerings to include more loans and mortgages. These services will enable the company to capitalize on the elevated interest rates that have bolstered margins for large banks in recent years.
However, despite the company’s commitment to the UK market, the firm has recently withdrawn its crypto services in the region due to the upcoming advertising regulation scheduled to take place in January.
The company said the move is part of its strategy to ensure its business offerings align with the incoming law to avoid compliance issues.
