Monzo has reported a gross profit of £1bn for the first time, while its revenue jumped by 39% year-on-year to £1.7bn.

The digital bank said that its revenue surge was powered by four £300m+ income streams in current account balances, borrowing, payments and wealth. Its business banking also delivered what Monzo described as "another stellar year", representing 14% of total revenue.

In the year to 31 March, its adjusted profit before tax increased by 20% to £172.6m, with a record three million new customers joining in this period, to 15 million customers overall .

Its number of business customers also grew by 45%, taking the total to over 905,000, equivalent to one in seven businesses.

Monzo said that across the year, it laid the foundations for its next phase of growth, unlocking opportunities in the UK and Europe.

This includes securing a new European banking license, which allowed it to acquire the digital mortgage broker, Habito, and its launch in Ireland.

In its outlook, the bank said it entered the new financial year with "significant momentum, a clear strategy and a fast-growing, highly-engaging customer base".

It added that it will continue to build on strong customer engagement in the UK with more "game-changing products". Furthermore, it will work on its expansion into Europe, and is targeting Spain as its next European market.

Group chief executive officer at Monzo, Diana Layfield, stated: "We've delivered strong, profitable growth while investing in the foundations that will power our future. Millions of customers are choosing Monzo for more of their financial lives.

"We're building on that momentum by delivering more products for personal and business customers, continuing to grow in the UK and bringing Monzo magic to Europe in a way that feels truly local from day one. Our mission to make money work for everyone is more relevant than ever, and the opportunity ahead has never been greater."

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