Monzo has revealed surging annual profits as the digital bank attracted new customers and grew income from its paid subscription plans.
The company reported a pre-tax profit of £60.5 million for the year to the end of March – more than four-fold the £13.9 million generated the prior year.
Last year, Monzo’s employees sold £109 million worth of shares as part of a staff share sale that saw the bank’s valuation rise to £4.5 billion.
Excluding the financial impact of the sale – which cost the group about £53 million in expenses – its pre-tax profit surged eight-fold to £113.9 million.
The bank, which was founded a decade ago, cheered its first annual profit last year having grown to become the UK’s seventh-largest bank with more than 12 million customers.
It said 2.4 million new customers joined over the past year, with deposits growing by 48% to £16.6 billion.
The digital bank has also been cashing in on new paid subscription plans, which offer perks with retailers such as Vue and Greggs, enhanced budgeting features, and phone and travel insurance.
About one million customers paid for a subscription last year, with the group’s fee and commission income increasing 38% to £329 million, it said.
TS Anil, Monzo’s chief executive, said the bank was “just getting started”, adding: “By bringing the best of technology and banking together and remaining customer-obsessed, we’re seeing accelerating growth and momentum and unprecedented customer love.”
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