British challenger bank Monzo has hit its first-ever full year of profit, posting a pre-tax profit of £15.4m for the year ended 31 March.
Monzo said it hit profit for the year after a revenue jump to £880m across its various income streams.
Monzo was founded in 2015 and, as an early success story of British open banking, rode the fintech wave to become the UK’s largest digital bank and the seventh-largest UK bank of any kind by number of customers.
The fintech unicorn currently has over nine million users. The bank said it garnered 2.3 million new customers in the last year alone.
Among the bank’s revenue streams is its premium subscription, which it said had over 500,000 users across its two tiers. The recent period of historic interest rate highs also contributed to increased revenue from loan providers such as Monzo.
“This was a landmark year of record growth for Monzo,” said CEO TS Anil. “I’ve never believed in the idea that a company has to choose between either being mission-oriented or focused on business outcomes.
“We’ve achieved scale, growth and profitability, and we have all the right components to seize the huge opportunity ahead.”
The challenger bank was recently valued at £4bn after a £340m investment round led by CapitalG – a growth fund owned by Alphabet.
This year also saw first-time full-year profits for fellow digital bank Zopa and embedded banking company ClearBank.
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