Monzo has published its financial results for 2024, revealing its first full-year pre-tax profit. The company also confirmed that it is in the early stages of expanding into the wider European market through a new base in Ireland.
The news comes shortly after the UK-based neobank raised $430 million (£340 million) in March and another $190 million last month, bringing its valuation to $5.2 billion. Most of the funding was raised to spearhead a push into the US market, a market the company has been trying to break into for several years. Last October, it appointed a new CEO for its US operations, poaching Conor Walsh, global head of product at Block's Cash App, to lead the US.
However, it has now emerged that Monzo is finally planning to expand into markets closer to home as well, with its sights set on a “new gateway” in Ireland, which could mean opening a new office in Dublin, although no timescale for this plan has been revealed.
growth
Monzo turned a profit for the first time in March last year, a milestone brought about by its lending products and high interest rates in the U.K. The trend has continued for the rest of the financial year, with the company now reporting a pre-tax profit of £15.4 million. This compares with a full-year loss of £119 million in 2022 and a loss of £116 million in 2023. Monzo also reported that its revenue rose 250% last year to £880 million.
In the report, Monzo's executive chairman Gary Hoffman acknowledged that expected lower interest rates could impact financial performance over the next 12 months, pointing to “external uncertainties” that could “create volatility” across the banking industry.
“The UK is only just emerging from a technical recession with economic growth slowing significantly and UK economic growth is expected to slow even as interest rates begin to gradually decline,” Hoffman noted. “While these risks may impact our results and plans, we believe we are in a strong position not only to withstand these potential headwinds but to continue to thrive in the face of them.”
Overall, there's been some pretty positive news for neobanks lately, with Monzo's UK rival Revolut posting its first full-year profit last year. Brazil's Nubank has also performed well, with its valuation soaring to a record $58 billion this year. This follows a rise from a net loss of $9 million in 2022 to a net profit of $1 billion last year.
Meanwhile, Monzo's customer base has grown by more than 2.3 million to 9.7 million, including 400,000 businesses, and the company expects the number to grow to 11 million next year.