Digital bank Monzo records first full-year profit after more than doubling turnover

Monzo, the British digital challenger bank, reported its first full year of profitability on Monday.

The fintech startup said in its annual financial results that pre-tax profits in the 2023-2024 financial year totaled £15.4 million ($19.6 million), up from a loss of £116.3 million the year before that fell into the black.

Monzo posted full-year sales of £880 million, up from £355.6 million in 2022. That represented an increase more than doubling.

Monzo is one of Britain's largest digital banks, competing with the likes of Starling and Revolut, as well as established lenders such as HSBC And Barclays.

Last year, Monzo reported its first month of profit. That marked a major turnaround from 2020, when Monzo warned it had doubts about its ability to continue “as a going concern” early in the Covid-19 pandemic.

The company has experienced significant growth in recent years. This year it reached a valuation of $5.2 billion. This arose from an investment product in collaboration with asset management giant BlackRock.