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Monzo has reported annual revenues of more than £1bn for the first time and a steep rise in profits, but played down speculation of an imminent initial public offering.
The London-based fintech reported pre-tax profit of £60.5mn for the 12 months to March, just under four times its profits a year earlier.
Since launching in the UK more than a decade ago as a digital challenger bank to take on the country’s traditional high-street lenders, Monzo has attracted more than 12mn personal and business customers.
The company added 2.4mn new customers in its latest financial year, and revenues increased 48 per cent to £1.2bn. Customer deposits rose 48 per cent to £16.6bn.
Monzo is one of the UK’s highest-profile fintechs, and last year secured itself a $5bn valuation in a fundraising led by Alphabet’s investment fund CapitalG.
The Financial Times reported in January that Monzo, which is also backed by Tencent, had been holding preliminary discussions with bankers in an effort to get “IPO ready” by the end of this year.
However, on Monday, chief executive TS Anil said it was “too early for us to talk about an IPO”.
He added: “We’d make a great public company one day and we are well on the trajectory to do that when we choose to but it is not something that we are focused on right now.”
Turmoil in public markets has forced many companies to put their IPO plans on hold, including buy now, pay later group Klarna, which had filed for a listing in the US.
Monzo was “orientated to scaling our business”, Anil said. The company is seeking to expand into Europe, starting with Ireland, and continues to build out its business in the US.
The fintech withdrew its application for a US banking licence in 2021, but Anil has since laid out ambitions to re-enter the country — this time via a banking partnership that would allow it to bypass a licence application.
“We are excited about the US because it is a massive market and it is a market that we feel truly needs a Monzo,” said Anil.
Monzo’s board had been debating whether to pursue a listing in New York or London, the FT previously reported, with Anil pushing for a US IPO to be considered.
During the financial year, the company’s highest-paid director received almost £12mn compared with £1.7mn in 2024. Anil declined to identify the director.
The company also said in its annual results on Monday that an investigation by the UK’s Financial Conduct Authority was “likely to have a financial cost” to the business, but did not put a figure on the potential liability.
The FCA launched an investigation into Monzo in 2021 on potential breaches of rules on anti-money laundering and financial crime systems and controls. Anil declined to comment further during the media call.