UK digital bank Monzo Bank Ltd. reported a 44% jump in profit for the year through March, driven by strong lending growth. The lender posted £87.3 million ($117 million) in profit before tax, up from £60.5 million the prior year. Revenue climbed to £1.7 billion, a 39% increase, as higher interest income from loans boosted results.

This performance underscores Monzo's successful shift toward a more balanced business model, reducing reliance on interchange fees. The bank has aggressively expanded its lending portfolio, including personal loans and credit products, capitalizing on a gap in the market for digital-first finance. The profit surge comes as Monzo nears profitability, a key milestone for the once money-losing fintech.

The results position Monzo favorably as it considers future growth phases, potentially including new product launches or market expansions. Turning consistent profit validates the long-term strategy of building a sustainable digital banking franchise in a competitive UK landscape.