FinTech: Revolut May Report A Profit In Audited 2021 Accounts

February 20, 2023 | FinTech, News

Revolut was supposed to file its 2021 accounts by September 2022.

Revolut, a UK-based fintech, is expected to finalize its 2021 financial accounts next week after months of delay, according to people familiar with the matter. The company’s audit committee will meet on Thursday to approve the accounts, which are then expected to be signed off by auditor BDO on Friday.

On Friday, the challenger bank confirmed its accounts were complete and that it is likely to report a profit. “We are very proud of this and intend to file the accounts soon,” it said.

The filing of the accounts could clear another obstacle to Revolut’s attempts to obtain a UK banking license since early 2021. Reportedly, regulators have been unhappy about the company’s culture and have wanted a separate review of the measures in place to prevent and detect financial crime at the fintech. (FT)

Meanwhile, BDO has been pushing Revolut to improve its internal controls after the UK accounting regulator flagged an “unacceptably high” risk of “material misstatement” in its 2020 accounts.

Revolut’s hard-driving culture and high-profile departures of senior compliance staff have been attributed to significant growing pains in its zeal to take on traditional banks. Despite this, the company was last valued at $33bn in July 2021, making it the second most valuable private fintech in Europe.

Revolut evolved from a low-fee money transfer service to offer bank accounts across Europe through its Lithuanian banking license.

However, a UK banking license would help boost profitability and would also help convince regulators in other markets to offer it licenses.

Revolut could face a fine from Companies House for failing to file its accounts on time. The penalty for filing up to three months late is up to £375 per company, and company directors may also face prosecution if the registry chooses to penalize them.

Related Story:  UK Digital Bank Monzo Eyes Potential Profitability In 2023

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