Monzo has cemented its position as a leading light in the British financial technology space after reporting its first full year of profitability.
The app-based challenger bank achieved a profit before tax of £15.4 million, a significant turnaround from the £116.3 million loss in the previous year.
Net interest income surged to £437.97 million, compared to £164.25 million in the 2023 financial year, while fees and commissions added over £200 million to the top line.
This growth was supported by an 88% rise in customer deposits, which reached £11.2 billion, while the customer base grew by 31% to 9.7 million.
Word of mouth drove 46% of new customer acquisitions, according to Monzo, which was valued at around US$5.2 billion in its latest fundraising round, more than Virgin Money, OSB and Metro Bank combined.
To cope with this considerable increase in demand, Monzo increased its headcount by 28% to 3,145 employees in the year. This caused a swell in personnel and other operating expenses which meant group-wide profit margins stayed in the low single digits.
During the period, the bank's valuation climbed to over £4 billion after a successful funding round led by CapitalG.
Chair of the Board Gary Hoffman called this first year of profitability an “important milestone”.