Digital bank Monzo reached profitability in the first two months of 2023.

The trailblazing FinTech also reported an almost doubling of revenue over the 12 months to 28th February 2023, reaching £214.5m.

In the same period it made losses of £116.3m, down from £119m in 2022.

Total lending volume reached £759.7m, almost tripling year-on-year, but credit losses increased seven-fold to £101.2m as the cost-of-living crisis hit households.

Rival Starling Bank reached profitability in 2021. Monzo expects to reach full-year profitability by the end of 2024.

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Monzo now has 7.4m customers in the UK – the seventh-largest – with 350,000 paid accounts. Total customer deposits now stand at £6 billion.

Monzo CEO TS Anil told CNBC that “we could have chosen to be profitable a few quarters ago… profitability was always a choice as we balance [this] with continuing to invest in growth”.

The company continues to face a Financial Conduct Authority inquiry into alleged breaches of anti-money laundering laws which it said “could have a negative impact on our financial position”.

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