Monzo has just released its financial results for 2024, which include its first-ever full-year pre-tax profit. The company has announced its plans to expand into the broader European market through a new base in Ireland.
The news arrives shortly after the U.K.-based neobank secured significant funding, beginning with $430 million (£340 million) in March and an additional $190 million last month, valuing the company at $5.2 billion. The company aims to drive its growth in the U.S. market, a market it has been striving to enter for several years, with a substantial portion of this funding. In October of last year, the company hired Conor Walsh, formerly the head of global product for Block’s Cash App, to serve as the new CEO of its U.S. operations.
However, Monzo is now considering expanding into more local markets. The company is looking to establish a “new gateway” in Ireland, which will involve opening a new office in Dublin. However, the company has not provided a specific timeline for this plan. 
Expanding Monzo
Monzo achieved profitability for the first time in March, thanks to its successful lending product and the favourable interest rates in the U.K. The trend persisted throughout the financial year, as the company reported a pre-tax profit of £15.4 million. This is a significant improvement compared to the £119M loss in 2022 and the £116M loss in 2023. Monzo also announced a significant increase in revenue, reaching £880 million last year, reflecting growth of 250%.
In the report, Monzo’s board chair, Gary Hoffman, recognises the potential impact of an anticipated interest rate drop on the bank’s performance in the next 12 months. He highlights the presence of “external uncertainties” that could lead to volatility in the banking sector as a whole.
“The U.K. has recently come out of a technical recession, with economic growth slowing down considerably. Hoffman anticipates a sluggish growth in the U.K. economy, despite the gradual decrease in interest rates. Although there are potential risks that could affect our performance and plans, I am confident in our ability to not only withstand these challenges but also thrive in spite of them.
Overall, the recent news for neobanks has been quite positive, as evidenced by Revolut, a U.K. competitor to Monzo, achieving its first full-year of profitability last year. Brazil’s Nubank has experienced remarkable growth, with its valuation reaching a record-breaking $58 billion this year. This impressive turnaround saw the company go from a $9M net loss in 2022 to a $1B net profit last year.
Monzo, on the other hand, has experienced a significant increase in its customer base, reaching 9.7 million, with an addition of over 2.3 million customers, including 400,000 business clients. The company has projected a customer count of 11 million for the upcoming year.
