Customer Subscriptions Drive Annual Profits of UK Digital Bank Past $1 Billion Mark

UK digital bank Monzo has reported a surge in annual profits. According to Reuters, the mobile-based bank reported annual revenues of $1.35 billion, surpassing the $1 billion mark for the first time. Monzo’s annual profit rise has been attributed to an increase in new customers and income growth from its paid subscription plans.

Consistent Growth

Founded in 2015, Monzo is among the various digital banks that challenge the dominance of big four banks in the UK. These are Barclays, HSBC, NatWest, and Lloyds. Monzo financial results showed that the UK digital bank recorded £60.5 million in pre-tax profit in the year ending in March 2025. This amount is four times more than the £13.9 million the bank generated in the previous year.

In 2024, staff working in Monzo offloaded stocks worth £109 million as part of an employee share sale. This move caused the valuation of the bank to rise to £4.5 billion. The share sale cost the digital bank about £53 million in expenses. In the same period, the bank’s pre-tax profit increased 8-fold to reach a high of £113.9 million.

Monzo’s customer base expanded to reach 12 million as the bank grew to become the UK’s seventh largest. Last year, the digital bank grew its customer base by 25% to 12.2 million. The bank plans to strengthen its presence in the US and expand operations in Europe through Ireland. Monzo also plans to expand to more countries by the end of this year.

Monzo IPO Plans

The UK digital bank has been exploring the potential of a Monzo stock market listing with bankers. Even so, the location and timing of an initial public offering hasn’t been agreed yet. The bank has also said it’s still too early to discuss IPO plans.

“We believe we’ll make a great public company one day, and we’re well on the trajectory to doing that when we choose to, but it is just not something we are focused on right now,” Monzo Chief Executive Officer TS Anil said.

Anil also termed Monzo investors are extremely patient, saying they “expect to make returns and they certainly will make returns, whenever there is a liquidity event.”

The launch of an IPO would see the bank shares launch on the public market, a move that could significantly boost its valuation. In 2021, the UK financial regulator started investigating Monzo for potential breach of financial crime controls and anti-money laundering laws.

On June 2, the bank said the probe could cost it financially once it is resolved. However, Monzo did not provide details of what these costs could be.

Bank Account Usage

Monzo said that deposits from customers increased by 48% this past year to reach a high of £16.6 billion. The digital bank also revealed that a third of its signed up customers use the digital bank as its primary bank. This points to a growing proportion of its customers who use the account for their daily banking transactions, including receiving salaries. According to the bank, this proportion is extremely high compared to other digital banks.

“We’ve seen this growing over the last financial year, people are moving more of their lives over to Monzo,” Monzo Chief Financial Officer Tom Oldham said.

Monzo has also been leveraging new paid subscription plans to grow its product range. Currently, the bank offers a wide range of perks with retailers like Greggs and Vue, phone and travel insurance, and improved budgeting features. Last year, the bank estimated that about 1 million customers paid for a subscription. Over the same period, income from commissions and fees amounted to £329 million, which represented a 38% rise.

The bank says it remains committed to providing the best bank technology. “Monzo is just getting started. By bringing the best of technology and banking together and remaining customer-obsessed, we’re seeing accelerating growth and momentum and unprecedented customer love,” Anil said.