Revolut reviews report earnings because it hints at plans for IPO

Revolut has reported report annual earnings and additional hinted at plans for a inventory market flotation, regardless of nonetheless struggling to safe a UK banking licence.

The London-based fintech firm, which has been ready greater than three years for its UK licence to be permitted, swung to a £438m revenue in 2023, having made a £25m loss a year earlier.

Earnings have been elevated by greater rates of interest and an formidable growth plan that helped so as to add 12 million clients to its person base final yr. Revenues jumped 95% to £1.8bn in 2023, in keeping with its newest annual report.

However bosses have but to persuade regulators to grant the corporate a UK banking licence that may open the door to new earnings streams. A licence would enable Revolut to carry its clients’ deposits, which might assist fund its own-branded loans and mortgages. It could additionally most likely persuade regulators in different key nations such because the US to observe swimsuit.

The problem, partially, has been convincing regulators that Revolut has addressed a lot of accounting and reputational concerns lately, after EU regulatory breaches, questions over its corporate culture and the late submitting of its accounts.

Revolut bosses made little reference to the UK applicationwhich was first lodged in early 2021 in its newest annual report, saying solely: “We’re persevering with to work intently with the [Prudential Regulation Authority] on our UK financial institution licence utility.”

Nonetheless, Revolut – which was valued at $33bn in 2021 – gave additional hints that it was on observe for what is anticipated to be a bumper preliminary public providing (IPO) It insisted in its annual report that it had “enhanced” its monetary controls in methods anticipated of “listed firms”.

It comes a yr after the auditor BDO mentioned it had been unable to get a full image of Revolut’s income, and warned that in consequence, the corporate’s funds have been susceptible to being “materially misstated.”

Revolut mentioned it had centered on enhancing its processes all through 2023 in a manner that allowed BDO to “improve their understanding of the enterprise,” and launch its monetary outcomes earlier, having beforehand confronted vital delays.

“We’re happy that Revolut’s transformation programme has now enabled us to return to a daily monetary reporting schedule,” Revolut mentioned. “We’re assured we’ve got set strong foundations that, in the long term, will assist our increasing banking operations and can deliver our monetary processes consistent with the requirements anticipated from publicly listed firms.”

Revolut greater than tripled the wage of its highest-paid director, believed to be the founder and chief govt Nik Storonsky, to £333,000 from £100,00 a yr earlier. Nonetheless, his general pay plunged 97%, due a large share payout in 2022 that took his whole pay to £17.8m that yr. That determine fell to £378,000 in 2023.