What's happened
Revolut reported a net profit of $1 billion for 2024, marking its fourth consecutive profitable year. The company aims to launch its UK bank in 2025, following significant growth in its customer base and revenues, particularly in its wealth division and crypto trading activities.
What's behind the headline?
Key Insights
- Profitability and Growth: Revolut's net profit of $1 billion in 2024 reflects a significant turnaround, more than doubling its earnings from 2023. This growth is attributed to a 38% increase in its customer base and a 72% rise in revenues.
- Market Position: With a valuation of $45 billion, Revolut is positioned as a leader in the fintech space, particularly in Europe. Its expansion into crypto trading and the launch of Revolut X are pivotal for future growth.
- Banking License Impact: The upcoming launch of its UK bank will enable Revolut to hold customer deposits and offer loans, enhancing its competitive edge against traditional banks and other fintech firms.
- Challenges Ahead: Despite its successes, Revolut faces challenges in the U.S. market and ongoing legal issues, such as the lawsuit from Rippling regarding financial disclosures. These factors could impact its growth trajectory and market perception.
- Future Outlook: Revolut aims to double its customer base to 100 million by 2025, which will require continued innovation and effective market strategies to maintain its growth momentum.
What the papers say
According to The Independent, Revolut's pre-tax profit reached $1.4 billion in 2024, driven by a quadrupling of revenues in its wealth division due to increased crypto trading. The Guardian highlights that Revolut's valuation has surged to $45 billion, emphasizing its significant market position. TechCrunch notes that the company is focusing on launching its UK bank and expanding its services, while also navigating challenges in the U.S. market. These insights collectively illustrate Revolut's ambitious growth plans and the competitive landscape it operates within.
How we got here
Revolut has rapidly expanded since its inception, becoming Europe's most valuable startup. It secured a banking license in the UK in 2024, allowing it to offer a wider range of financial services, including customer deposits and lending products.
Go deeper
- What are Revolut's plans for the U.S. market?
- How does Revolut's banking license impact its services?
- What challenges is Revolut currently facing?
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What Contributed to Revolut's Record Growth in 2024?
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What are Revolut's plans for its UK bank launch in 2025?
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More on these topics
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The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom or Britain, is a sovereign country located off the northÂwestern coast of the European mainland.
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Revolut is a financial technology company that offers banking services. Headquartered in London, England, it was founded in 2015 by Nikolay Storonsky and Vlad Yatsenko.
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Prosus N.V., or Prosus, is a Dutch multinational conglomerate company that is the international Internet assets division of South African multinational Naspers.