Revolut swings to loss as cost increases offset boost from higher rates

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Revolut swung to a loss last year as higher costs offset a windfall from higher interest rates, according to delayed annual accounts from the fintech group on Friday.

The company posted a pre-tax loss of £25.4mn in 2022, compared with a pre-tax profit of £40mn the previous year which had been fuelled largely by a surge in cryptocurrency trading. Revenue rose 45 per cent year on year to £923mn as its interest income rose to £83mn from £1.7mn, thanks to interest rate increases from central banks.

Administrative expenses rose to £667.1mn from £380.1mn as the group’s headcount more than doubled to nearly 6,000 employees.

The fast-growing fintech, which has applied for a banking licence in the UK, attracted scrutiny last year after its auditor BDO warned that the bulk of its revenue “may be materially misstated”. This year it gave Revolut another qualified audit but said this was “solely in respect of the comparability of the current year’s figures for revenue and related balances with the prior year figures”.

Revolut’s 2022 results had been due to be filed by the end of September, nine months after the end of its financial year. However, the company was handed an extension until the end of December from the government agency Companies House for a second consecutive year.

Chief executive Nik Storonsky said: “Looking ahead, our focus is on continued growth across all our markets. We remain committed to our ongoing UK banking licence application in addition to bringing the Revolut app to new markets and customers around the world.”