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Revolut CEO welcomes London listing revamp as fintech reports record profits
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Revolut’s chairman welcomed upcoming reforms to UK listing rules but stopped short of committing to an initial public offering in London as the British fintech reported record profits.
“All movements [regulators] “What they’re doing is good, they’re allowing founder-led companies like Revolut to list here rather than just not having a choice,” Martin Gilbert told the Financial Times on Tuesday. “But again, let’s see how it all plays out, the proof will definitely be in what happens in the future.”
Gilbert, a City veteran who joined the fintech’s board in 2020, said Revolution was at least a year away from a public listing and would “keep an open mind” about the location.
His comments mark a softening of previous statements by Chief Executive Nikolay Storonsky, who previously avoided the UK regulatory environment and last year ruled out an IPO in London. Meanwhile, the SoftBank-backed company is still waiting for a banking license in the UK more than three years after submitting an application to regulators.
The U.K. has also been seeking to attract more companies to list in London as it tries to deal with an exodus from its capital markets. The Financial Conduct Authority has been consulting on changes to its listing rules, including making it easier for companies to use dual-class share structures, which allow founders to retain control even after selling much of their stake in a IPO.
London-based Revolut said on Tuesday it made a pretax profit of £438 million in 2023, up from a loss of £25 million the previous year. Its revenues nearly doubled to £1.8 billion.
Founded by Storonsky and Vlad Yatsenko in 2015, Revolut has pursued ambitious international expansion, outpacing the growth of rival banks including Monzo and Starling, even as it awaits a UK banking license.
The group added 12 million customers last year, taking its current total to more than 45 million. Its interest income, meanwhile, rose more than fivefold to £500 million in the period.
“Our diversified business model continues to demonstrate resilience, with robust growth across multiple business units,” Storonsky said. “This growth has been fueled by the introduction of new products and the addition of millions of new customers.”
Your application for a UK banking license has been blocked due to issues including a auditors’ notice who have been unable to fully verify the revenue figures in the group’s 2021 accounts. A UK banking licence would allow the fintech to expand the products and services it can offer in its largest market.
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The group, which holds a European banking licence granted by the Lithuanian authorities and offers personal loans in France, Germany and Spain, has expanded its loan book to £528m.
Advertising and marketing costs soared more than 80 percent to £241 million last year. As part of a push to expand in Europe, Revolut bought advertising space on airport jetways across the continent.
Despite prolonged uncertainty over a UK license, the fintech is targeting a valuation of more than $40 billion in a share sale, the FT said reported last month. That would eclipse the $33 billion valuation Revolut achieved in a 2021 fundraising.
Last month, the company announced plans to move its headquarters to one of the most prominent buildings in Canary Wharf, where it has been based since its founding.