Monzo has reported its third consecutive yr of profitability, pushed by report buyer development, increasing deposit balances and 4 income streams every producing greater than £300m
Monzo has delivered its strongest monetary efficiency thus far, with income climbing 39% year-on-year to £1.7bn ($2.28bn) for the yr ended 31 March 2026, because the challenger financial institution continued to deepen its grip on the UK retail banking market whereas laying the groundwork for European enlargement.
Adjusted revenue earlier than tax rose 20% to £172.6m, up from £143.9m within the prior yr, with gross revenue reaching £1.0bn – a 35% enhance.
The outcomes marks the digital financial institution’s third straight yr within the black, which Chair Gary Hoffman described as “pivotal”, including that the financial institution’s “diversified enterprise mannequin delivered a powerful monetary efficiency” – a characterisation the numbers broadly assist.
Monzo: Report buyer additions gasoline deposit surge
The financial institution added greater than three million prospects through the yr – its highest annual consumption thus far – bringing its complete base to fifteen.2 million throughout private and enterprise accounts.
Round one in 5 UK adults now financial institution with Monzo, with roughly half of its month-to-month lively customers, which reached 10.4 million, treating it as their major financial institution.
Enterprise banking was a specific brilliant spot, with buyer numbers leaping 45% to 905,000. Common income per lively buyer rose to £167 in private banking and £484 in enterprise banking, up 9% and 12% respectively.
Buyer deposits surged 55% to £25.7bn, buoyed by a 75% enhance in financial savings deposits to £15.5bn. Greater than 3.5 million prospects now maintain financial savings with Monzo, whereas the lending e-book grew 42% to £2.6bn. Crucially, credit score loss bills grew at a slower charge than balances, with the mortgage loss charge bettering from 9.4% to 9.0%.
The more and more diversified income base was a notable function of the outcomes. 4 distinct earnings streams – present account balances, borrowing, funds and wealth – every surpassed £300m for the primary time, in comparison with only one the prior yr.
European enlargement and first acquisition an indication of strategic shift?
Past the headline numbers, FY2026 marked a collection of structural milestones. In December 2025, Monzo turned the primary digital financial institution to obtain a European banking licence through the Central Financial institution of Eire, enabling it to start serving private and enterprise prospects in Eire. A waitlist of 100,000 preceded the official April launch, with Spain introduced as the following goal market.
The financial institution additionally agreed to accumulate digital mortgage dealer Hey Habito, finishing the transaction on 1 April 2026. With greater than 550,000 prospects already monitoring their mortgage by Monzo’s homeownership function, the deal gives a capital-efficient route into the broker-led mortgage market.
Monzo additionally closed its US operations through the yr, concentrating funding on the UK and Europe the place it believes it might construct deeper buyer relationships.
CEO Diana Layfield, who took the function from TS Anil in February 2026, stated: “Constructing a enterprise that may innovate at tempo and make investments for the longer term whereas delivering sustainable development and profitability requires deliberate selections and self-discipline.”
Funding section weighs on price ratios
Not all metrics moved in the suitable path. The price-to-income ratio edged as much as 74% from 70% because the financial institution accelerated hiring throughout product, know-how and monetary crime capabilities, and elevated its advertising spend by 46% to £143.1m.
Personnel prices rose 19% to £421.6m, with common headcount rising to 4,674.
Fraud-related prices additionally elevated materially. Monzo reimbursed £59.6m to fraud victims through the yr – an 85% enhance – reflecting the full-year influence of the Fee Programs Regulator‘s (PSR) necessary reimbursement regime for authorised push fee scams, launched in October 2024.
The Monetary Conduct Authority‘s (FCA) investigation into historic monetary crime controls concluded in July 2025 with a £21.1m high-quality. Monzo management characterised the decision as drawing a line beneath points firmly prior to now.
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