Revolut losses almost double

Net losses at London-based challenger bank Revolut widened from £107.4 million to £207 million in 2020, rising 93 per cent year-on-year.

However, the FinTech’s overall revenues increased 34 per cent to £222 million from £166 million in 2020, despite losing income from its core travel related operations.

Revolut’s revenue was boosted by gains on cryptoassets held on its balance sheet, which accounted for £39 million of its reported revenue.

The company ended last year with over 2,000 staff, and the FinTech said staff costs were responsible for a sizeable portion of its expenses.

Revolut’s userbase grew 45 per cent to 14.5 million personal customers while total Revolut Business customers hit 500,000 by the end of 2020.

The total value of deposits held in customer accounts grew by 96 per cent year-on-year to £4.6 billion from £2.4 billion.

Revolut said it will continue its international expansion with the launch of services in the US, Australia, and Japan, with the US being a key focus.

The FinTech also said it is building a team in India led by the Indian chief executive Paroma Chaterjee, which it said will create 300 new jobs in the Asian country.

In April, it surfaced that Revolut is set for a new funding round that will value the company at between £7.2 billion and £10.8 billion, making founder and chief executive Nikolay Storonsky a dollar billionaire.

Revolut also launched a variety of new products and services in 2020. In May, Revolut announced the launch of crypto withdrawals, which gave customers the option to transfer bitcoin to their personal wallets.

“As the extraordinary circumstances of 2020 drove the trend towards digital financial management we continued to innovate for customers to make their financial lives easier and accelerate daily use,” said Storonsky. “We launched 24 new retail and business products, expanded into the US, Japan and Australia and launched banking services in Lithuania, all while significantly improving our profitability.”

He added: “We began 2021 with a more resilient and productive business that will enhance our trajectory towards rapid growth.”

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