Monzo reports 44% rise in annual profit on customer and deposit growth

Monzo, a leading UK digital bank, has reported a significant increase in annual profits and revenue, driven by substantial growth in its customer base and deposits. The bank’s pretax profit for the year ending in March reached £87.3 million, a 44 percent increase from the previous year, while total revenue grew by 39 percent to £1.7 billion.

This financial performance was supported by the addition of approximately three million new customers over the financial year, bringing Monzo’s total customer base to 15.2 million. Customer deposits surged by 55 percent to over £25.7 billion. The bank highlighted that it now has four distinct revenue streams each generating over £300 million: current account balances, borrowing, payments, and its wealth management services.

Monzo’s business banking division showed particularly strong growth, with customer numbers increasing by 45 percent to 905,000. Business banking now represents 14 percent of total revenue. The bank also reported that 1.6 million customers now subscribe to its paid account plans, a segment where fee and commission income rose 39 percent to £459 million. The company stated that around half of its active customers now use...