Revolut expects sales to continue growing in 2023.
British online banking company Revolut finally released its delayed 2022 annual financial earnings report on Friday, December 22.
The company reported a significant 45% increase in sales this year, reaching 922.5 million pounds, worth $1.2 billion. This reduced pre-tax loss to 25.4 million pounds ($32.2 million), a notable change from the 2021 recalculated profit of 39.8 million pounds.
Revolut’s 2022 Financials
The 2022 performance results come after the company received approval from government body Companies House in September to extend its 2023 financials until December. With just days left until the December deadline, Revolut successfully postponed its earnings report twice.
In a statement on Friday, the company said interest income would rise 50-fold to £83 million in 2022 due to rising interest rates. Similarly, administrative costs also jumped to £667.1 million in the same year, representing a significant increase in interest income of £83 million. In 2021, we spent $380 million.
Revolut said a card payment fraud incident in the US resulted in losses of £17 million, impacting its bottom line, compared with $5.8 million in 2022 net profit.
Total staff costs also rose significantly to £361.9 million from £219 million two years ago. The company also achieved a new record by adding 10 million new customers in 2022, bringing its total user base to 26.2 million by the end of the year.
“We strengthened our financial position, expanded our customer base, launched several new products, expanded into new markets, and strengthened our risk, compliance and governance infrastructure,” said Nik Storonsky, the company’s CEO.
Deposits reached £12.6 billion in 2022, compared to £7.4 billion the previous year, according to the financial report. The company’s headcount more than doubled, reaching a new high of 5,913 by the end of 2022. The company said it currently has about 8,000 employees. Additionally, director remuneration almost doubled in 2022 to £1.1 million.
Revolut expects to generate $2 billion in revenue in 2023.
Revolut expects its 2023 earnings to continue its growth trajectory, with just-released financials showing. The neobank expects to generate $2 billion in revenue for the fiscal year that ends next week, along with a double-digit net profit margin.
In 2021, the British online banking company achieved the impressive milestone of a valuation of $33 billion. In the same year, the company applied for a banking license in the UK. However, UK regulators have not yet decided whether to apply it.
Storonsky also said in the annual report that the company is committed to application adoption. Securing the license will allow Revolut to expand its services to include more loans and mortgages. These services will allow the company to take advantage of rising interest rates that have tightened margins at large banks in recent years.
However, despite the company’s commitment to the UK market, the company recently withdrew its cryptocurrency services from the region due to advertising regulations scheduled to come into effect in January.
The company said the move is part of its strategy to ensure its business proposition is in line with current laws to avoid compliance issues.
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