Digital banking app Revolut said its annual losses doubled to just over £200m as administrative costs rose from investment in risk, compliance and controls.
Administrative costs increased from £125m in 2019 to £266m in 2020, Revolut said, outpacing growth in revenues as it expands into new markets.
But adjusted revenues increased by 57% from £166m in 2019 to £261m in 2020, while its gross profit jumped by 215% to £123m for the year with steady improvements noted every quarter.
Its personal customers increased by 45% from 10 million at the end of 2019 to 14.5 million at the end of 2020, while its business customers hit 500,000.
Founded in 2015 by former Credit Suisse trader Nik Storonsky and software developer Vladyslav Yatsenko, Revolut offers a range of products including currency exchange, debit cards and stock trading.
Revolut noted that while Covid-19 reduced payments volumes from March onwards, this was more than offset by growth in subscriptions, wealth and trading and Revolut Business.
The company's customer base increased and daily use grew, customer balances rose by 96% to £4.6 billion at the end of 2020 from £2.4 billion in 2019 with average deposits increasing by more than 30%.
The company's international expansion continued with the launch of services in the US, Australia and Japan and Revolut said it continues to look for wider opportunities and this year began to build a team in India.
Nik Storonsky said that as the extraordinary circumstances of 2020 drove the trend towards digital financial management the company continued to innovate for customers to make their financial lives easier and accelerate daily use.
"We launched 24 new retail and business products, expanded into the US, Japan and Australia and launched banking services in Lithuania, all while significantly improving our profitability," the CEO said.
"We began 2021 with a more resilient and productive business that will enhance our trajectory towards rapid growth," he added.
But he said it may be early next year before it can launch the products, with the exact timing dependent on the financial technology firm securing the adequate licences from the Central Bank.
- additional reporting Reuters