Monzo posts sharp rise in revenue and profit as customer base surges

UK digital bank Monzo has reported a significant jump in revenue and profit, underlining its rapid growth and strengthening position in the retail and business banking market. Strong customer acquisition, higher deposits and expanding lending activity all contributed to the improved results.

The latest figures also highlight how Monzo is broadening its income sources beyond traditional banking, while continuing to build out its presence across the European Union.

Profits and revenue grow at double-digit pace

For the financial year ending March 2026, Monzo recorded pre-tax profit of £87.3 million. This represents a 44 percent increase compared with the previous year, pointing to stronger profitability as the bank scales.

Revenue rose 39 percent year-on-year to £1.7 billion. According to the bank, the uplift reflects both a larger customer base and greater engagement with its range of products.

Customer numbers and deposits climb

Monzo added around three million customers during the year, taking its total customer base to more than 15.2 million. The expansion in users fed directly into higher balances and activity across the platform.

Customer deposits reached £25.7 billion, up 55 percent on the year. This sharp increase in deposits strengthens the bank’s funding base and supports its lending growth.

Diversified revenue streams

Monzo stressed that its income is increasingly diversified. The bank now has four distinct revenue streams each generating more than £300 million annually:

• Current account balances – income from customer cash held in accounts
• Borrowing – interest and fees from lending products
• Payments – revenue linked to card and payment activity
• Wealth – income from savings and investment-related services

The bank reported that income from lending alone increased by 39 percent over the year, supported by rising demand for credit products.

Business banking gains momentum

Monzo’s push into business banking is becoming a more meaningful contributor to the group. Business accounts now generate around 14 percent of total revenue, indicating growing adoption among small and medium-sized enterprises.

Subscription services are also scaling. Around 1.6 million customers now pay for Monzo’s premium plans, providing the bank with a recurring and more predictable revenue base.

Half of active customers use Monzo as their main bank

Monzo reported an important milestone in customer behaviour: 50 percent of active users now treat Monzo as their primary bank. This is a key metric for digital banks, as customers who have salaries and everyday spending running through their accounts tend to be more engaged and profitable.

The shift towards primary banking use suggests that more customers are comfortable relying on Monzo for their core financial needs, from income deposits to bill payments and savings.

European expansion and future focus

Alongside its UK growth, Monzo is stepping up its expansion efforts across the EU, aiming to offer services tailored to local markets. The bank says it is investing in the infrastructure and products needed to support that broader footprint.

Monzo CEO Diana Layfield, who took over the role this year, said the bank has combined strong growth with improving profitability while laying the groundwork for the next phase of expansion. She highlighted plans to keep rolling out new services for both personal and business customers, and to bring what she described as Monzo’s distinctive approach to more European markets.

With rising revenue, a broader product mix and deeper customer relationships, Monzo is positioning itself as a major player among digital banks, both in the UK and increasingly across Europe.