Challenger bank Monzo has posted a strong set of annual results for 2025, with revenue growing 48% to £1.2 billion, a significant milestone in the 10-year-old bank's evolution from startup to a major player in the UK banking sector and a vindication of its history of strong product thinking. The company also posted a big increase in profit, with a pre-tax profit of £60.5 million for the year to the end of March, up from £13.9 million the previous year. Its much mooted IPO appears to be no closer to being implemented however, with CEO TS Anil saying it’s far too early to be talking about a public listing.
Monzo added 2.4 million new customers this year, bringing its total customers to over 12 million, and its customer deposits increased by 48% to £16.6 billion. It also launched a swathe of new products during the year, including accounts for under 16s, pensions and new subscription plans.
Commenting on LinkedIn, Anil said: “We’ve grown, scaled and become sustainably profitable, without sacrificing an inch of customer centricity and only increasing customer love. And this year, you will see more products, more markets, and more Monzo magic than ever before. And the best part? We’re still just getting started.”
Strong product thinking has always been a significant factor in the Monzo playbook and a core driver of its standout financial performance. For example, this six-year-old Mind the Product post from Richard Cadman, now a Product Director at the company, underlines the clarity of thinking and strength of the product practice at Monzo. And this 2017 ProductTank talk from Ole Mahrt, then Monzo’s Head of Product, shows how a great customer experience has always been at the heart of the bank’s mission.
Monzo is well known for its data-informed product management - for fast experimentation, clear feedback loops via in-app surveys and community forums and strong internal tooling for data visibility and decision-making. It's a product mindset that has enabled the company to optimise pricing, minimise churn, and maximise margins, and this is especially visible in its subscription and lending products. Its subscription income grew by 50% this year to £75.2 million thanks to the success of subscription plans like Monzo Perks and Extra, while the bank's loan book expanded to £1.9 billion this year, a 36% increase from the previous year.
Despite the CEO’s protestations, speculation in the financial markets leans towards a Monzo IPO sooner rather than later. The company has formed an investor relations team and is reportedly working with Morgan Stanley, with some reports predicting a flotation as early as the start of next year. Monzo is also looking to expand - it plans to enter the European market via Ireland and is renewing its efforts in the US through banking partnerships. It currently partners with Sutton Bank in Ohio to provide banking services, deposit holding, and pass-through FDIC insurance. It also has a partnership with Plaid which aims to improve financial connectivity for its US customers by integrating with Plaid's extensive fintech ecosystem.
Who does what? Organising your product teams – Mike Hudack on The Product Experience
How to Grow and Scale a High-Functioning Team by Richard Cadman
