Annual earnings rocket at challenger bank Monzo

(Sharecast News) - Monzo posted a surge in annual earnings on Tuesday, as the challenger bank benefited from a sharp rise in customer numbers and increased lending.

The digital-only neobank saw revenues rise 39% in the year to March end to £1.7bn, after interest income rose to £1.2bn from £861.7m a year previously. Customers grew by 25% to 15.2m. Adjusted pre-tax profits rose 20% to £172.9m.

Chair Gary Hoffman called it a "pivotal" year for the privately-owned fintech, during which it won licences to operate from the Central Bank of Ireland and European Central Bank.

He continued: "It was the year we demonstrated our growth potential by investing across our business and platform to open up new markets and deepen our product offering."

New chief executive Diana Layfield, who took up the role in February, said the lender would now focus on building on momentum in the UK as well as scaling "with discipline" in Europe - including launching in Spain - and marketing new products.

The ex-Google staffer was named chief executive in October following the surprise departure of former incumbent TS Anil. The move was understood to have unnerved some investors, who reportedly wanted Hoffman to step down. Hoffman, a previous chair of English Premier League, has led Monzo since 2019.

The British neobank, which was founded in 2015 and is now valued at around £4.5bn, is understood to be targeting a City listing later this year.