Revolut Reports First Full-Year Profit in 2021 Despite Crypto Downturn, Plans for Global Expansion and UK Banking License

Revolut, the UK-based fintech company, registered its first-ever full-year profit in 2021, reporting a 33% revenue jump last year, despite a downturn in the crypto market. The company’s Chief Financial Officer, Mikko Salovaara, confirmed that the revenue increase came on the back of payments, subscriptions, and business accounts, increasing revenues to over £850 million ($1.03 billion) in 2022. Salovaara also revealed that the company has just signed off on the 2021 annual accounts after months of delays due to the replacement of its internal accounting systems.

“Our accounting systems needed replacement,” Salovaara said. “We were held to the highest possible accounting standards.”

Revolut’s accounting firm, BDO, will retain its role for the 2022 audit. The company swung to a profit of £26 million in 2021, with cryptocurrencies trading boosting its accounts. However, the firm’s revenues from its crypto business shrank in 2022, with the crypto business accounting for only 5-10% of its total income last year.

Revolut’s total staff costs increased by 9% in 2021, with the number of employees doubling in 2022 to more than 6,000. The company aims to expand globally, including in India, where it recently acquired Arvog Forex, and in Brazil, Mexico, and New Zealand, where it plans to launch in the coming weeks.

Revolut’s 2022 accounts are expected to be published by June, with Salovaara stating that the company is “self-sustained” and does not plan to fundraise soon. The fintech company was valued at around $33 billion in its last funding round, making it the UK’s most valuable start-up. The publication of the accounts could pave the way for a UK banking license, which Revolut applied for two years ago. Salovaara stated that the company is at the very final stage of the process and that the relationships with the UK regulators have been reasonable.

“We will eventually be a public-listed business, but it’s not a priority,” Salovaara said.

Revolut’s success in 2021 showcases the company’s ability to weather the storm of the pandemic, as well as the volatility of the crypto market. The fintech firm’s continued expansion into international markets, coupled with its plans for a UK banking license, demonstrates the company’s commitment to growth and diversification.

Revolut on Track to Secure UK Banking License

Revolut is expected to secure its UK banking license within weeks following the release of its long-overdue financial accounts for 2021, according to The Mail on Sunday.

The UK banking license is crucial for Revolut as it would allow the company to lend money, which is becoming increasingly attractive with interest rates hitting their highest level in 15 years at four per cent.

The license also provides formal recognition from regulators that the company is operating in line with legal requirements and consumer protections. Revolut, the UK’s largest fintech valued at nearly £30bn, has been campaigning for a UK banking license for several years. The licence is signed off by the country’s two foremost financial watchdogs, the Prudential Regulation Authority and the Financial Conduct Authority.

The company has already secured banking licences in several markets across Western Europe. Last week, Revolut announced plans to hire approximately 1,700 people in London over the next year as it continues its expansion.