Online bank Monzo seems set to continue with its growth strategy following the announcement of the first annual profit in its history.
Monzo Planning Expansion After First Profit
Monzo was launched in 2015 and has become the seventh-largest bank in the UK in recent years. With almost 10 million customers, Monzo has benefited from more customers depositing more funds with it, giving a pre-tax profit of £15.4m in the financial year ending in March, which was a huge improvement on last year’s pre-tax loss of £116.3m.
Customer deposits rose by 88% to £11.2bn as the bank added features such as stocks and shares ISAs to its product range. Higher interest rates in the UK have helped Monzo to benefit from the additional funds deposited in its accounts.
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Its management team is now looking at expanding across Europe and the US. An office in Dublin could be the first to open overseas, as this is seen as offering a gateway to the planned expansion to mainland Europe. The Dublin office is expected to open in the next few months, but no official date has been announced yet.
The move into the US market was delayed in 2021 when Monzo withdrew its application for an American licence, but it is expected to try again soon. Chief executive TS Anil said:
In many ways, it is flattering to me that we get compared to banks that have been around for much longer, centuries in most cases, because it establishes that we are a player at scale and we are building a company for the ages.
