Monzo reached profitability in March having recorded a near doubling of its profits in its latest financial year ended in February.

The British FinTech’s financials showed an 88 per cent rise in profits to around £214 million from £114 million in the previous year.

Monzo also recorded high losses, with a 42 per cent rise leaving overall losses for the year hovering at around £100 million.

“Our losses remained large this year, which was expected as we continued to invest and grow our business, resulting in higher costs,” said chair of the board of directors Gary Hoffman. “But we’ve seen the benefits of this investment throughout FY2023 as revenues grew significantly and I’m thrilled that since the end of our audited financial year, this momentum has continued and we’ve reached profitability.”

A gross lending spike of 167 per cent – from £0.3 billion to £0.8 billion – is likely the key driver of Monzo hitting profitability, while its net subscription saw a 77 per cent rise to around £20 million.

Remarking on its performance, Monzo chief executive TS Anil noted that Monzo hit a record annualised revenue run rate of over £500 million in March 2023 against a backdrop of “external uncertainty”.

“While we grew by an average of 133,000 new customers each month, engagement with our products and features also increased – with deposits up 34 per cent to £6 billion and card spend increasing by 38 per cent to £33.6 billion,” Anil said.

Monzo also said that it is continuing to cooperate with the Financial Conduct Authority regarding an ongoing inquiry initiated in 2021 around alleged breaches of anti-money laundering laws.

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