(Bloomberg) -- Revolut Ltd. said revenue for 2023 almost doubled to £1.8 billion ($2.2 billion), as the UK challenger bank unveiled its latest annual accounts that got a clean bill of health from its auditor.

The London-based fintech said interest income climbed to £500 million last year from £83 million in 2022, according to a statement on Tuesday. That was offset, though, by a surge in credit losses tied to both lending and non-lending products, which ultimately crimped profits.

“Revolut remains poised for exponential growth in 2024 and beyond,” Chief Executive Officer Nik Storonsky said in the statement. The company added 12 million new customers globally last year with the total reaching 38 million by the end of 2023 and 45 million by June. 

The latest results come well ahead of a statutory deadline, after Revolut struggled with delayed statements and stumbles in the prior years.

Filing its results on time has been seen as an important element for the fintech to finally secure a crucial UK banking license, which would allow Revolut to expand its offerings in its home country. The company has been trying to get the permit for years. 

“We’re in the process of working with regulators, but there are no set timelines,” Francesca Carlesi, Revolut’s UK CEO, said in an interview on Tuesday. 

Auditor BDO gave an unqualified opinion of Revolut’s 2023 accounts, in a further boost to the fintech’s ambitions.  

“We are pleased that Revolut’s transformation programme has now enabled us to return to a regular financial reporting schedule,” Chief Financial Officer Victor Stinga said in the annual report. He also signaled its ambitions to list, noting the company was on track to bring its “financial processes in line with the standards expected from publicly listed companies.”

The company has hired bankers to help sell about $500 million worth of existing equity in a transaction that may value the business at more $40 billion, up from the $33 billion valuation it last garnered in a 2021 fundraising round, Bloomberg News reported last month.

Revolut reported a record pretax profit of £438 million, swinging from a pretax loss of £25.4 million in the previous year. Combined credit losses in lending and non-lending products more than tripled to £46.6 million from £13.6 million.

The fintech’s revenue streams were diversified, with a mix of payments, subscriptions, FX and interest income. Stinga said in an interview that lending is a “nascent part” of Revolut’s business. “We take it conservative, but we’re very optimistic about this business when we see the demand from customers,” he added.

Other key insights:

  • Loan book jumps to £528 million from £204 million
  • Credit losses on lending products rise as the firm rolled out personal loans in France, Germany, Spain as well as credit cards in Ireland and Spain
  • Administrative costs went up to £933 million; spending on marketing and advertising at £241 million
  • Total staff costs rose to £498 million from £362 million
  • Headcount increased 38% to 8,152 in the year
  • Company says it’s on track to surpass 50 million customers by the end of FY24

--With assistance from Tom Metcalf.

(Updates with previous year’s pretax loss in 10th paragraph. An earlier version corrected the CEO’s name.)

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