Increasingly diversified money transfer, foreign exchange and credit product provider Revolut has expanded operations into new business areas, territories and product lines in the past year.
The UK-based annual report from the Revolut Group for the year ended 31 December 2023 has disclosed a solid financial performance, with group revenues increasing from £0.92 billion (A$1.7bn) in 2022 to £1.8 billion (A$3.4bn), marking a 95 per cent increase.
Similarly, profit before tax grew to £438 million (A$820 m) in 2023 and net profit grew to £344 million. Total customer balances, including balances held by customers with partner institutions, increased from £13.2 billion to £18.2 billion.
In FY 23, Australia was Revolut’s leading market by customer growth and monthly active customer use, with the total number of retail customers increasing by 112 per cent. This has proven critical to Revolut's global expansion strategy, according to a Revolut media release.
Revolut stated its annual revenue in Australia more than doubled, increasing by 166 per cent between 2022 and 2023, with deposit balances growing by 61 per cent to reach £61.5 million (A$115m) by the end of 2023.
Total transaction volumes for FY23 increased 122 per cent (up A$660m on FY22, with the increase split $246m and $414m between domestic and international transactions).
Also last year, Revolut Business – designed to automate finance operations, with multi-currency accounts, global payments, and smarter spending tools – was launched in Australia, marking it as the company's first business market outside of Europe and the US.
As of 1 January 2024, Revolut moved under direct supervision of the European Central Bank through Revolut Bank UAB headquartered in Lithuania.
"This marks an important milestone in Revolut’s journey as a bank in Europe, as we now join the 100+ largest and most significant banks in the Eurozone, also under ECB supervision," CEO Nik Storonsky stated in Revolut's 2023 annual report.
Storonsky further observed that Revolut is already a licensed bank in 30 countries in the EEA, offering a Deposit Guarantee Scheme of up to €100,000 in Europe, and remains committed to progressing a UK banking licence application.
He was also keen to highlight expansion into "new, strategic markets for Revolut" – namely New Zealand and Brazil Brazil, its first market in South America.
Storonsky said that in 2024 Revolut launched its first push into non-banking services, allowing customers to buy phone data packages through the Revolut app.