Financial technology company Revolut, which specializes in providing banking services, has received its first annual profit.
The company’s financial statements, which were published with a significant delay, contain information that the firm made a profit of 26 million pounds. Revolut’s revenue increased from 220 million pounds in 2020 to 636 million pounds a year later.
The company replaced internal accounting systems after the British Financial Reporting Council, responsible for regulating auditing activities, stated that the firm’s audit as of 2020 contains many inconsistencies to requirements and has a potential risk of material misstatement.
The representative of Revolut says that all the shortcomings associated with the claims were eliminated back in 2021. He also noted that the current income reports do not raise questions regarding reliability and accuracy.
The company’s CEO, Nick Sideski, says that Revolut’s profit in 2021 was high in the face of adverse external factors, the key of which was global quarantines due to coronavirus. He also noted that the intensification of the use of digital services and the intensive transition to remote work contributed to an increase in the number of customers.
In 2021, Revolut reached more than 5 million retail customers. The number of users of paid tariff plans has increased by 75%. Average customer expenses increased by 10% per user. In 2021, Revolut also extended banking services to 18 European countries.
The company has been granted banking status in the EU but is still awaiting a banking license from the UK Financial Supervision Authority. Difficulties in interacting with the British regulator arose as a result of problems with auditing and compliance with legal norms.
Mikko Salovaara, the company’s Chief Financial Officer, reported on the improvement of the financial control function. He noted that this solution will support the rapid and sustainable growth of the business.
Revolut was founded in 2015. The company is headquartered in London.
As we have reported earlier, Revolut Launches In-App Cashback Feature.