Monzo Bank’s 185-page annual report is out, let’s have a look at the most important numbers.
Monzo is still far from becoming profitable. From March 2021 to March 2022, Monzo ended up with a loss of £119m (The loss was£130m the previous year).
However, this comparison includes non-recurring items. If we consider recurring costs-only, Monzo’s losses actually went up by £3m from £116.2m in the year ending March 2021 to £119m for the latest figures.
But according to June 2022’s revenue figures, heading for further substantial growth in revenue. June’s numbers suggest an annual revenue run rate of £270m.
“Our strategy is working, with record revenue growth – up 92% to more than £150 million by the end of the financial year 2022 (FY2022). Since year-end growth has continued, with our annual run rate1 reaching £270m in May 2022,” claims CEO TS Anil.
“Our £450m fundraise in December 2021 makes us the UK’s largest and most valuable digital bank. We made big investments in our people and product, introducing significant wellbeing policies and an industry-first product in Monzo Flex.”
Monzo claims it now has 5.8 million customers for the period covered. This, according to the report represents an increase of one million compared with the end of March 2021.
The digital bank also made progress in gross lending increasing by £154m to £259m compared to £105m last year.
Monzo Flex, a rival product to Klarna BNPL, was launched through the reporting period in September 2021.
“We pride ourselves on offering customers a transparent and flexible way to borrow money that helps them to feel in control at all times. Our ambition is now to make Monzo Flex available to everyone, including non-Monzo customers” the report said.
Monzo saw subscription income quadruple by March 2022 compared with the previous year with net fee and commission income also increasing by 93 percent.