Fintech

Revolut chairman welcomes London listing review as fintech posts record profits

Published

on

Unlock Editor’s Digest for free

Revolut’s chairman has praised upcoming reforms to UK listing rules but has not committed to an initial public offering in London as the British fintech posted record profits.

“All the moves [regulators] “They’re doing well, they’re allowing founder-led companies like Revolut to list here rather than having no choice,” Martin Gilbert told the Financial Times on Tuesday. “But again, let’s see how it plays out, the test will certainly be what happens in the future.”

Gilbert, a City veteran who joined the fintech’s board in 2020, said Revolution was at least a year away from going public and would “keep an open mind” about the venue.

His comments mark a softening of previous statements by Director General Nikolay Storonsky, who previously avoided the UK regulatory environment and last year ruled out a London IPO. Meanwhile, the SoftBank-backed company is still awaiting a banking license in the U.K., more than three years after submitting an application to regulators.

The UK has also sought to attract more companies to list in London, in a bid to tackle an exodus from its capital markets. The Financial Conduct Authority has consulted on changes to its listing rules, including making it easier for companies to use dual-class share structures, which allow founders to retain control even after selling a large portion of their stake in a IPO.

London-based Revolut said Tuesday it made a pre-tax profit of 438 million pounds in 2023, up from a loss of 25 million pounds a year earlier. Its revenue nearly doubled to 1.8 billion pounds.

Founded by Storonsky and Vlad Yatsenko in 2015, Revolut has pursued ambitious international expansion, outpacing the growth of rival banks including Monzo and Starling, although it still awaits a UK banking licence.

The group added 12 million customers last year, taking its current total to more than 45 million. Meanwhile, its interest income has more than quintupled to £500 million over the period.

“Our diversified business model continues to demonstrate resilience, with robust growth across multiple business units,” Storonsky said. “This growth has been fueled by the introduction of new products and the addition of millions of new customers.”

Its application for a banking licence in the UK has been held up by problems including a Auditors’ warning which could not fully verify the revenue figures in the 2021 group accounts. A banking licence in the UK would allow the fintech to broaden the products and services it can offer in its largest market.

The group, which has a European banking licence issued by the Lithuanian authorities and offers personal loans in France, Germany and Spain, has expanded its loan portfolio to £528m.

Advertising and marketing costs rose more than 80 percent to £241 million last year. As part of a push to expand in Europe, Revolut has bought advertising space on airbridge billboards at airports across the continent.

Despite prolonged uncertainty over UK licensing, fintech aims for $40bn-plus valuation in share sale, FT says reported last monthThat would eclipse the $33 billion valuation Revolut reached in a 2021 fundraising round.

Last month, the company announced plans to move its headquarters to one of the most prominent buildings in Canary Wharf, where it has been based since its founding.

Source

Leave a Reply

Your email address will not be published. Required fields are marked *

Información básica sobre protección de datos Ver más

  • Responsable: Miguel Mamador.
  • Finalidad:  Moderar los comentarios.
  • Legitimación:  Por consentimiento del interesado.
  • Destinatarios y encargados de tratamiento:  No se ceden o comunican datos a terceros para prestar este servicio. El Titular ha contratado los servicios de alojamiento web a Banahosting que actúa como encargado de tratamiento.
  • Derechos: Acceder, rectificar y suprimir los datos.
  • Información Adicional: Puede consultar la información detallada en la Política de Privacidad.

Trending

Exit mobile version