Monzo has announced a significant 44 per cent surge in its annual profits, driven by increased lending activities and a growing uptake of its paid subscription services.
The digital challenger bank, established 11 years ago, reported a pre-tax profit of £87.3 million for the year ending March, a substantial rise from the £60.5 million recorded in the previous year.
Total revenues for the period climbed by 39 per cent to £1.7 billion, with lending income alone seeing a 39 per cent year-on-year increase. Monzo provides a range of financial products, including loans, overdrafts, and credit cards for both individuals and businesses.
The bank has also capitalised on its paid subscription plans, which offer customers enhanced money management tools and exclusive perks with partners such as Greggs and Vue. Approximately 1.6 million customers are now subscribed to these plans, contributing to a 39 per cent increase in the group’s fee and commission income, reaching £459 million.
Monzo's customer base has expanded to 15.2 million, positioning it as the seventh-largest bank in the UK by customer numbers.
The institution is actively encouraging more users to adopt Monzo as their primary bank for day-to-day transactions, including salary deposits, to compete more directly with established high street lenders. Currently, around half of its active customers, equating to about a third of its total customer base, use Monzo as their main bank.
The bank’s latest annual report also disclosed that its highest-paid director, identified as its former chief executive TS Anil, received a pay package of £3.5 million last year.
This figure represents a notable decrease from the £12 million he earned the year prior, when profits saw a fourfold increase. Mr Anil stepped down earlier this year and has been succeeded by former Google executive Diana Layfield.
Ms Layfield commented: "Millions of customers are choosing Monzo for more of their financial lives. We’re building on that momentum by delivering more products for personal and business customers, continuing to grow in the UK and bringing Monzo magic to Europe in a way that feels truly local from day one."
