The London-based neobank delivered exceptional financial performance in its latest fiscal year, cementing its position as Europe's leading digital banking platform while laying groundwork for international expansion.
Europe's largest fintech company is capitalizing on momentum after obtaining a full UK banking licence earlier this month, concluding a five-year regulatory approval process. The company has recently announced plans for significant expansion into the US market, with market speculation suggesting a forthcoming secondary share offering could establish a $100bn valuation.
The digital bank reported pre-tax profits of £1.7bn, representing a 57% year-over-year increase, while total revenues expanded from £3.1bn to £4.5bn. This financial performance was driven by substantial customer acquisition — reaching 68.3m users from 52.5m — combined with strengthened revenue streams across card transactions, premium subscriptions and deposit interest income.
Transaction fee revenue from card payments increased 45% to reach £1bn, while net interest income totaled £974m. Premium subscription revenues demonstrated particularly robust growth, climbing 67% year-over-year to £708m, underscoring strong customer demand for enhanced service tiers.
Cofounder and CEO Nik Storonsky has consistently emphasized that securing full UK banking authorization represents a pivotal milestone for the company's strategic development.
This regulatory clearance enables the fintech to expand its lending operations within its domestic market and mount a more formidable challenge to traditional banking institutions. The licence also enhances the company's credibility with international regulators, who are believed to have awaited UK approval before considering their own authorizations.
Earlier this month, Sifted reported that the company had submitted an application for US banking authorization and appointed former Visa executive Cetin Duransoy to lead its American operations. The firm has operated under a European banking licence since 2018, secured through Lithuanian regulatory authorities.