Revolut reported a pre-tax loss of £107m for the year 2019 to December. This means the company’s losses more than tripled to a £33m pound loss in 2018.
This completes the bigger picture of the state of the market with the annual reports from other challenger banks in the UK.
Starling’s losses doubled to £52 million in 2019, while the company trebled its staff numbers. Monzo bank’s losses jumped from £47.2m to £113.8m amid a hiring spree, marketing, and also its US expansion.
The losses for Revolut came despite Revolut’s revenue jumping by 180% to £163 million. Revolut has also seen a huge surge of retail customers with the total number increasing from 3.5 million to 10 million.
The fintech unicorn said it was reducing discretionary spending and keeping a tight control on costs. However, Revolut’s job cuts did not come without creating a controversy. Some former staff members complained that they were forced to leave their jobs without receiving the full severance.
While Monzo admitted that the bank’s future remains unsure, Starling’s CEO Anne Boden claimed that the company is ‘on track to break even’ despite their losses doubled.
Right after the COVID-19 outbreak, Revolut moved on from travel perks to becoming a trading app. The Revolut’s app is now marketed as a super-app, with even more features to come for Revolut’s customers. Revolut claims that it saw rising income from domestic spending and cryptocurrency trading.
“Despite the current economic challenges, we remain focused on our goal of moving towards profitability,” the company’s CEO and founder Nik Storonsky said.