Monzo is aiming to execute a “year of expansion across Europe” after posting strong 2024 financial results that saw revenue and gross profit increase year-over-year.
For the financial year ending March 31 2025, Monzo posted revenues of £1.235bn, a 48% increase YoY from £835m.
Interest income (£861m) and fee and commission income, generated mostly from return on customer loans and held assets, (£329m) also increased from the last financial year, while other operating income slightly dipped (£44.5m).
Monzo’s gross profit rose 55% year-on-year to £747m, but rising costs, particularly personnel (£352m) and further operating expenses, (£334m) resulted in a wider pre-tax loss of £60m, up from £13.9m last year.
The strong 2024 performance is serving as a platform for the UK digital bank to grow across Europe, an ambition that has been in progress with the appointment of Michael Carney in October 2024 as Director of Ireland.
Monzo named Ireland as its primary EU hub to lay the foundations for wider European expansion over the next 12 months, with a focus on delivering its core personal and savings accounts that have served them well in the UK.
Monzo is signalling for an Irish presence with plans for a new office in the country, as well as an eye on growing in the US led by US CEO Connor Walsh in a renewed bid to expand in the country.
TS Anil, Monzo CEO, said: “We’ve laid the groundwork for our European expansion and our plans are progressing well to bring everything Monzo to Europe. Michael Carney and a growing leadership team are driving those efforts through our gateway in Ireland. These are the first major steps on our journey to becoming a global banking disruptor.
“In the US, we’ve launched multiple new features and products including interest-earning Savings Jars to our growing customer base, with the team continuing to grow and invest in the product under Conor Walsh’s leadership.”
Subscriptions
The Monzo annual year report revealed its subscriptions products proved to be a “hit” with customers last year.
Monzo launched new personal account subscription plans in April 2024; Monzo Extra, Perks and Max, which more than 870,000 customers used and now pay due to added benefits, such as virtual cards, advanced roundups and credit insights.
Income from subscription products increased by 50%, from £50m last year, to £75m for the year after. Customers utilising Monzo’s subscription plans also increased by 64% YoY, with 480,000 new customers.
Anil described the growth of the subscription products as a “huge success” which has led to the 38% increase in fee and commission revenue.
Personal banking still at the core for Monzo
Celebrating its 10 year anniversary this after launching in 2015, Monzo has surpassed unicorn status and become one of the UK’s leading digital banks, which has garnered more customers year after year.
Monzo reported it increased its total customer base from 9.8 million in the last financial year, to 12.2 million YoY. The neobank also highlighted that this rise was attributed to a 67% increase from word of mouth recommendations.
This was evident in the increase of customer deposits, which grew by 48% from £11.2bn to £16.6bn. According to Gary Hoffman, Monzo Chair of Board of Directors, stated that this is built on the “strength of our engagement with our customers”.
“Over 2.2m personal and 200k business customers joined us last year, which means we now serve an increasingly diverse group of 12m+ people and businesses,” said Hoffman.
“We’ve introduced new products to expand the number of customer problems we’re committed to solving, deepening that engagement with our customers even further. With many more products coming soon, we expect this trend to continue.”
IPO cool down?
Monzo’s strong 2024 accounts continue to fuel speculation of an upcoming IPO for the UK fintech. Media suggest Monzo is preparing for a potential £6bn flotation, with Morgan Stanley advising on a listing that could take place in London or New York.
However, Anil has downplayed immediate IPO plans, stating the focus remains on growth and its European expansion—although leadership acknowledges that Monzo would guarantee a unicorn listing.
