Monzo revenues hit £1bn for the first time

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Monzo has reported annual revenues of more than £1bn for the first time and a steep rise in profits even as it warned of a financial hit from a long-running investigation into potential breaches of anti-money laundering laws.

The London-based fintech reported pre-tax profit of £60.5mn for the 12 months to March, four times its profits a year earlier.

Monzo said an investigation by the UK’s Financial Conduct Authority was “likely to have a financial cost” to the business but did not put a figure on the potential liability.

The FCA launched an investigation into Monzo, the UK’s largest digital bank, in 2021 on potential breaches of rules on anti-money laundering and financial crime systems and controls.

The company added 2.4mn new customers in its latest financial year, and revenues increased 48 per cent to £1.2bn. Customer deposits rose 48 per cent to £16.6bn.

“By bringing the best of technology and banking together and remaining customer-obsessed, we’re seeing accelerating growth and momentum and unprecedented customer love,” said TS Anil, group chief executive.