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UK fintech titan Monzo has announced its second consecutive year of profitability, with the neobank's revenue surpassing £1bn for the first time. The company's revenue soared by 48

per cent to £1.2bn, as it reported significant growth across all business sectors amid rising speculation of a London flotation in the upcoming months, as reported by City AM. Customer

deposits saw a 48 per cent increase to £16.6bn, while total assets surged by 41 per cent to £18.3bn. This growth enabled Monzo's pre-tax profit to more than quadruple to £60.5m. The

fintech posted an adjusted profit – excluding the one-off £53.4m cost of a secondary share sale – of £113.9m. This was achieved despite total expenses increasing by 47 per cent to £687.4m.

Monzo's cost-to-income ratio, a crucial financial metric indicating its efficiency and profitability as a business, remained high at 73 per cent, reflecting its ambitious growth

pursuits. The fintech reported a five per cent rise in headcount, increasing to 3,934 from 3,736 last year. CUSTOMERS RISE AS CREDIT LOSSES FALL Provisions for bad loans skyrocketed to

£251.2m, up from £204m last year. Meanwhile, credit loss expenses decreased to £152,595, down from 176,868 despite a 25 per cent rise in customers. The company's customer base expanded

to 12.2m for the year, up from 9.8m. This was facilitated by a series of new product launches for the fintech, including Monzo Perks, Monzo Extra and Monzo Max, which helped fuel a 38 per

cent increase in fees and commission revenue to £329.2m. Monzo has been creating a stir in the City amid rumours that it's preparing for a major £6bn IPO. The digital bank has been

widely tipped for a London flotation, with both Government and London Stock Exchange representatives wooing the company in an effort to revitalise the struggling market. Sky News reports

that Monzo has engaged Morgan Stanley bankers for discussions with potential investors ahead of a possible listing, which some have suggested could occur as soon as early 2026. TS Anil,

Monzo's Chief Executive, commented: "We've grown from a startup challenging the status quo, to a household name, a leading brand and the UK's 7th largest bank by customer

numbers." He added: "Our growth across the year is reinforced by the growing trust customers have in Monzo as they bring more and more of their financial lives to us."

However, Anil dismissed the IPO rumours, telling the press that it was "way too early" to think about going public. "An IPO is not something we're focused on right now.

"We're orientated entirely around scaling our business and taking it to greater heights." LIKE THIS STORY? WHY NOT SIGN UP TO GET THE LATEST BUSINESS NEWS STRAIGHT TO YOUR

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