2023
ANNUALREPORT
And Consolidated Financial Statements
for the year ended 31 December 2023

Revolut Group Holdings Ltd | Registered number: 12743269

Contents

4

Strategic Report
4 2023 Highlights
6 Chair's Statement
9 Chief Executive Officer’s Review
14 Chief Financial Officer’s Review
19 General Overview
36 Engaging with Stakeholders
40 Our People
46 Environmental, Social, and Governance ('ESG')

50

Risk Management and Compliance70

Corporate Governance
73 Board of Directors
81 Board Committees
86 Section 172 Statement
87 Directors’ Report

92

Financial Statements
93 Independent Auditor’s Report
97 Consolidated Statement of Comprehensive Income
98 Consolidated Statement of Financial Position
100 Consolidated Statement of Changes in Equity
102 Consolidated Statement of Cash Flows
104 Notes to the Consolidated Financial Statements

189

Other Information
189 Alternative Performance Measures
191 Glossary
193 Company Information

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

2

45M Customers in
38 Countries(as of June 2024)

Operating as a Licensed
Bank in 30 Countries(during 2023)#1 Finance App in 11
European Countries(by downloads 2023)

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

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2023 Highlights
Net Profit£344m

Revenue2022£0.92bn2023£1.80bn↑95%

Number of
Retail Customers
2023

Profit
Before Tax
£438m

38.0m
↑45%
2022

26.2m

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4

MonthlyTransactions(as of December)
2023

590m
↑73%
2022

341m

Total Customer Balances

Employees

2023£18.2bn↑38%
2022£13.2bn

2023

8,152
Awards

↑38%
2022

5,913

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

5

CHAIR'S
STATEMENT

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

62023 was a strong year for Revolut. We generated
record revenue once again, earning £1.80 billion,
representing a 95% increase year-on-year. Our
customer base grew during 2023 from 26.2 million to
38.0 million at year end, a nearly 45% increase. Our
customers showed increased trust in us, with totalcustomer balances, including balances held by ourcustomers with partner institutions, increasing from
£13.2 billion to £18.2 billion. I would like to say ahuge thank you to our customers for putting theirtrust in Revolut.
Under the Board's supervision, Nik and his
management team further developed Revolut’s longterm strategy. Product roll-out continued at pace, we
expanded into new, strategic markets for Revolut(Brazil and New Zealand), and we implemented ourmost significant update to our app with Revolut 10.

Martin Gilbert
Chair

Investment in Our People
Our people are the cornerstone of Revolut’s success. They are driving innovation — designing the product, building
the technology — serving our customers, making strategic business decisions, managing the risks, and ensuring
full legal and regulatory compliance. This is why a key focus for 2023 was continued investment in our people bygrowing our headcount further, including in customer support and financial crime.
As our total staff headcount rose to more than 8,000 people worldwide in 2023, we were delighted to hear that
Revolut received a 'Great Place to Work' certification.
We further strengthened our Group Board with the addition of Dan Teodosiu, who brings experience in technology
and product development. We also bolstered our UK team, hiring Francesca Carlesi as our UK CEO in November
2023. Francesca brings her experience across the banking and fintech sectors to Revolut’s UK operation. We arecontinuing to work closely with the PRA (Prudential Regulation Authority) on our UK bank licence application.
As a Board, we are endlessly impressed by the calibre, work ethic, and passion of our employees. I want to extend
a huge thank you to all Revoluters for championing our values and for their relentless focus on making Revolut atruly global financial product, which our customers love.

Governance, Compliance, and Risk Management
We continued to focus on corporate governance, compliance, and risk management throughout the year, with ourrisk and compliance function growing from 256 to 331 employees by the end of 2023.

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In 2023, we focused on further strengthening our three lines of defence, to ensure all Revolut initiatives arelaunched in full compliance with our legal and regulatory obligations, and within a robust controls framework that iscontinuously tested and iterated upon. We revamped our global entity operations, ensuring compliance and control
are central considerations.
Revolut has an unmatched appetite for designing, building, and launching products that will solve our customers’
needs. Following the coming into effect of the Consumer Duty regulation in the UK in July 2023, we integrated a
new Consumer Duty Outcomes Framework within the company, building further on our existing processes,
including by creating additional consumer duty controls into our core product development process.

Looking Ahead
As we look to the future, we will continue with our mission to simplify all things money by expanding our productrange and all aspects of how we serve our customers.

Martin Gilbert
Chair
28 June 2024

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Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

9

Consumers want cutting-edge, intuitive banking
solutions that remove the friction between them andtheir financial goals. It's why our mission is to simplify
all things money.
In 2023, we took our biggest steps yet on thatjourney. We accelerated customer growth andincreased the adoption of our products across theboard, driving a record year for Revolut financially.
I want to thank the Dream Team at Revolut, whose
dedication and expertise drive us toward achieving
our goals each and every day. The talent,
experience, and intellect of our hardworking teamform the backbone of our rapid growth and constantinnovation.

Nik Storonsky
CEO & Co-founderAccelerated Customer Growth and Engagement
Revolut is already one of the leading financial institutions across many of our markets and continues to growrapidly. In 2023, our customer base reached 38.0 million, with a massive 11.8 million new customers joining Revolut— the highest ever in our history. We ended the year with Revolut being the most downloaded app in the Financecategory in Europe, ranking first in 11 countries and in the top three in 21 countries across Europe. We expanded to
New Zealand and Brazil, our first market in South America. Our progress was also recognised through a number ofindustry awards for quality of product and innovation1.
Our monthly active customer base expanded by nearly 47%, highlighting the strength of our product portfolio andquality of service. Engagement with our product remains strong with transaction volume surging by 58% last year,
reaching close to £700 billion and indicating greater use for daily spending. Equally, customers are choosing tosave with Revolut, with total customer balances, including those held by our customers with partner institutions,increasing to £18.2 billion, indicating that our growing customer base continues to turn to Revolut to meet theircore financial needs.
Overall, our growth is driven by our focus on building innovative products that offer better, simpler ways for people
to manage their money. Customers love our products, rating us 4.9/5 on the App Store and 4.7/5 on Google PlayStore2. Moreover, over 70% of customers who joined Revolut in 2023 did so organically, or were referred bysomeone they knew. To supplement our organic growth, we increased our sales, advertising, and marketinginvestment to more than £300 million across our retail and business segments, in various markets. This included
several key sponsorships, such as Revolut becoming the presenting partner of the NBA Paris Game 2024.

1

For example, we ranked number 1 on FastCompany's Most Innovative Companies 2024 list in the Personal Finance category, won the FS TechAwards' Consumer Finance App of the Year, and won the Cashless Pay 2023 Card of the Year 2023 for Ultra.
2

As of June 2024

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With Revolut, customers not only gain a superior banking experience, but also enjoy a bundle of services and perks
tailored to their lifestyle. Customers can book stays and experiences around the world directly from the app andget rewards when shopping with Revolut’s partners. In July 2023, we launched Ultra, our new award-winning top
tier plan in the UK and EEA, offering more than £4,000 worth of annual benefits and exceptional perks acrosstravel, lifestyle, and investing. In 2024, we launched eSIMs, allowing customers to buy phone data packages
through the Revolut app, signifying our push into non-banking services. The value that our customers derive fromthese offerings is reflected in the notable uptake in our paid subscription products, with a 41% growth in retailcustomers opting for a paid plan.
Further, we improved our money health tools to help customers understand their finances better through improved
spending, budgeting, and total wealth analytics. We also launched RevPoints in select markets — our loyalty
programme, which enables customers to earn points on their everyday card spend, and when using Revolut
products. These can be redeemed for Airline Miles or discounts on Revolut products. To provide a more intuitiveand simplified user experience within our growing suite of financial services, in 2023, we made the biggest change
yet to our app with the launch of Revolut 10.

Becoming the Primary Bank for Our Customers
In 2023, we saw a 68% rise in customers using Revolut as their primary financial services provider3. As thisadoption increases, we continue to give customers even more reasons to choose Revolut as their main bank.
Revolut is already a licensed bank in 30 countries in the EEA, offering a Deposit Guarantee Scheme up to €100,000
in Europe4, and we remain committed to progressing our UK banking licence application. We are also developing all
the local features our customers might want from their primary bank. As part of this, we have expanded our local
IBAN offering by launching branches for retail customers in France, Ireland, Spain, and the Netherlands.
Credit has been one of our key focus areas; we have applied our superior product experience and competitive
pricing with a view to becoming the first-choice provider for our customers. In 2023, we launched Personal Loansin France, Germany, and Spain, as well as credit cards in Ireland and Spain, increasing the number of countries
where we offer credit products5 to nine. We carefully scaled our credit portfolio to grow our credit book6 from£204 million in 2022, to more than £500 million in 2023.
Through additions to our savings and investments products in 2023, we have helped customers save and growtheir money. We launched money market funds across 22 countries in the EEA, with deposits reaching nearly£1.5 billion. This allows customers to invest their savings in the same money market funds that global investorsuse, making a previously inaccessible product available to everyone. We also launched Robo-advisor in the US,
and now in the EEA, to guide customers through their investment journeys.
Our products are increasingly being used by entire households. We've seen a major growth in the use of Revolut<18, with the number of users increasing by 67% during 2023. We've also rolled out joint accounts, to help ourcustomers better manage finances together with others.
The trust that our customers place in Revolut is incredibly important to us, and we remain as committed as ever toprovide excellent quality of service to them. We make continuous improvements to our customer support to ensure
our customers can always rely on us. In 2023, we achieved a substantial reduction in overall chat resolution time,
cut to one-third of what it was the year before. We also launched new support channels, including phone support,
as part of our Ultra plan. Such progress and continued excellence has been recognised and awarded year afteryear.7

3

Customers with bank transfers (not in their name, from same sender) in their Revolut account in two consecutive 31 day periods above 60% of

average monthly salary for the respective country
45
67Consistent with our regulatory obligations
Credit products include unsecured personal loans, credit cards and Pay Later
Defined as net loans and advances to customers under IFRSFor example, the International Customer Experience Awards 2023 (ICXA), which awarded us the Gold Prize

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

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Uncompromising Commitment to Customer Safety
Revolut takes customer safety incredibly seriously and we are investing heavily in tackling the industry-wide
challenge of fraud and scams. We have robust protections in place for our millions of customers, and analyse overhalf a billion transactions a month. Our security capabilities include a machine learning-based fraud detection
system, together with a team of 200+ fraud specialists, data scientists, and ex law enforcement personnel. Where
we detect signs of fraud, we intervene and investigate, and where customers do fall victim to fraud, we have frontline staff on hand 24/7 to provide support.
Last year, we enhanced our fraud protection models to cover new payment methods. We introduced biometricauthentication to protect against unauthorised account takeover and strengthened our customer warning andintervention system to protect more customers from falling victim to scams, equipping us to tackle emerging scammodalities with increased responsiveness. Further, we escalated the highest risk cases to our fraud specialists whoare empowered to take appropriate action to prevent fraud. We also used a number of our company channels,
including social media, to highlight emerging fraud and scam trends. As per our estimates, we prevented about£475 million of potential fraud against our customers in 2023. In 2024, we published a Financial Crime andConsumer Security Report to drive awareness of the dangers across the fraud landscape and provide advice on
how customers can best protect themselves.
At Revolut, we remain committed to continually improving and innovating in the cybersecurity space. In 2023, we
made significant security improvements, further utilising in-house technology to stay ahead of evolving threats,
improve our controls, and safeguard our customers. We also obtained a SOC2 Type 2 audit report to provide
independent assurance on the effectiveness of our key security controls.

Strong Growth in Revolut Business
Revolut Business is designed to automate finance operations for companies around the world, with multi-currency
accounts, global payments, and smarter spending tools. The segment continued to grow rapidly in 2023, withmonthly active businesses increasing 66% year on year. By end of 2023, Revolut Business was onboarding 20,000
SMEs (small and medium enterprises) each month. We continue to serve a broad range of customers, with the new
business mix shifting towards larger and more complex businesses. We also launched Revolut Business inAustralia, marking our first Business market outside of Europe and the US.
We have been working to expand the payment features available to our business customers, including Revtags(send and request money to other Revolut customers without their account details or phone number), payout links,
and local IBANs in several European countries, as well as more currency options for global transfers. Our
businesses want to control spending efficiently, so we continued to develop our spend management toolkit,
including flexible spend programs and improved accounting flows. We also rolled out a number of treasury
features, such as savings accounts in the UK, to generate returns for our customers, and limit and stop orders forbusinesses to choose the foreign exchange rates at which they exchange.
To meet fast growing demand in the acquiring business, we focused on increasing options for simple payment
acceptance, with both Tap to Pay on iPhone, and Revolut Reader for in-person payments. We also launched
Revolut Pay, which allows for one-click payments from the Revolut app. In 2023, more than 10,000 merchants
accepted payments with Revolut Pay. Marquee customers include Aer Lingus and Kiwi. We also enabled more
payment acceptance methods to support specific audiences, such as freelancers, through Revolut Pro. Revolut
Pro’s monthly active users nearly tripled by the end of 2023.

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Outstanding Financial Performance
In 2023, we achieved outstanding financial performance, with revenue increasing from £0.92 billion in 2022 to£1.80 billion, marking an 95% increase. Similarly, profit before tax grew to £438 million in 2023 and net profit grewto £344 million. Our diversified business model continues to demonstrate resilience, with robust growth acrossvarious business units. This growth was fueled by the introduction of new products and the addition of millions of
new customers. For further insights into our financial performance, please refer to the Chief Financial Officer's
Review.

High-Performance Culture
We received 1.9 million
job applications in 2023

At Revolut, we are proud of our high-performance
culture, and have cultivated an environment where
employees are both challenged and supported toreach their full potential. Attracting, retaining, andnurturing talented people remains a key priority forus.
In 2023, Revolut proudly achieved the 'Great Place toWork' certification in eight countries — UK, India,
Poland, Lithuania, Romania, Hungary, Spain, andPortugal. This recognition is a testament to ourongoing efforts in enhancing our high-performance
culture through value-based behaviours andemployee development initiatives. This was further
acknowledged through prestigious awards, including
winning the Most Popular 'Scale-Up' Graduate
Recruiter Award 2023, and ranking among the Top
15 LinkedIn Companies to Grow Your Career in the
UK and Portugal. Demonstrating the wide-ranging
appeal of Revolut as an employer of choice, we
received an unprecedented 1.9 million job
applications in 2023 alone.

Looking Ahead
As we reached 45 million retail customers (as of June 2024), Revolut remains poised for exponential growth. Our
customer base is expanding at impressive rates year after year, and our diversified business model continues tofuel exceptional financial performance. Every day, our innovative financial products create value for new customer
segments and new global markets.
With that accelerating trajectory, along with the talent, experience, and intellect of our 10,000-person strong
Dream Team, we continue to work towards becoming our customers' trusted primary financial services provider,
simplifying all things money for the world.

Nik Storonsky
Chief Executive Officer & Co-founder
28 June 2024

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

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LETTER FROMTHE CFO

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

142023 represented a breakout year for Revolut interms of growth, product development, andimproved competitive position.
We added 11.8 million new customers in 2023, morethan in any prior year in our history, consolidating ourmarket-leading position with 38.0 million customers
globally by year end. The growth we saw during2023 positions Revolut among the fastest-growing
financial apps, not only in what have historically been
our most established markets, such as the UK,
Ireland, and Eastern Europe, but now widely spread
across all major markets in Western and Southern
Europe, as well as the Nordics.
This widespread traction translated into outstanding
financial performance in 2023, underpinned byrevenue growth and profitability.

Victor Stinga
Chief Financial Officer

2023

2023

38.0m

£1.80bn

↑45%

↑95%

2023

£438m
24% margin

2022

26.2m
2022

£0.92bn

2022(£25m)(3%) margin

Number of Retail Customers

Revenue

Profit Before Tax

Fast Growing Diverse Revenue Streams
In 2023, our revenues saw exceptional growth, nearly doubling (+95% year-over-year) to £1.80 billion. This was
supported by strong performance across all transactional revenue streams, including payments, subscriptions,foreign exchange and wealth. As seen throughout the industry, interest income has represented a tailwind to ourbusiness in 2023, reaching £500 million. The growth from prior year was driven by higher customer deposits,
increases in central bank rates, and the build out of our treasury capabilities. We continue to regard revenue
diversification as one of the key drivers behind the success and resilience of our business model, with no single
product stream or region accounting for more than 30% of our total revenue in 2023.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

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Product Mix

Geographic Mix

8

7%
13%

27%

28%

29%

14%
5%
17%

10%

18%

14%

Payments
Subscriptions
WealthFXOther income
Interest income

United Kingdom
Eastern Europe
Southern Europe

20%

Western Europe
Northern Europe
Other 98,9Balancing Growth and Profitability
Throughout the year, we exercised disciplined
financial management predicated on the systematic
optimisation of our variable costs and the applicationof zero-based budgeting philosophy on our fixedadministrative expenses. Gross profit margin, a key
metric we track internally, grew to 76% from 70% in
2022, driven by improvements in partner unit costs,
reduced fraud losses, and increased share of highgross margin revenue streams. Our overhead ratio of
administrative
expenses(excluding
sales,
advertising, and marketing, which are discretionary
in nature) to gross profit has improved sharply to
44% in 2023 from 79% in 2022, demonstrating theinherent efficiency and scalability of our businessmodel and serving to validate our years-longstrategyofpainstakingly
building
in-housetechnology platforms and embedding data andautomation into our end-to-end processes.

Revolut's Overhead Ratio£1,371m

79%

£642m
£506m

£610m
44%

2022

2023

Gross Profit
Administrative Expenses (exc. Sales, Advertising and Marketing)Overhead Ratio

As in prior years, we continued to invest a significant portion of our excess profits in reaching new customers,building new products, and expanding globally. In 2023, we allocated an advertising and marketing budget of £241
million, almost double that of the prior year. We also scaled our B2B sales teams to over 900 employees by the endof 2023, as we aim to better serve the needs of larger enterprises. We continue to observe very attractive paybackon these investments driven by optimisations in our prediction and allocation models, as well as improved unit
economics.

8
9

Revenue in geographic mix is attributed based on a customer's country
Other includes all revenues from countries in the rest of the world and gains without an attributable country

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16

Overall, our financial results in 2023 reflect the balance we planned to achieve between fast growth andprofitability. We ended the year, our third profitable one in a row, with a net profit of £344 million — the equivalentof a 19% net profit margin. Our profit before tax was £438 million and adjusted EBITDA was £493 million.

Balance Sheet Management
Our balance sheet continued to grow in 2023, reaching £17.4 billion in total assets, primarily driven by the growthof our customer deposits to £15.1 billion. We note that in 2023, we launched and continued to operate off-balance
sheet deposit products, including savings accounts with partner banks and money market funds — both solutions
aimed at offering customers the ability to generate a yield on their balances. In total, at the end of 2023, customers
held an additional £3.1 billion of off-balance sheet customer deposits.
Our balance sheet management approach continued to be prudent and simple, with over 70% of our assets — or
£12.8 billion — held as cash and cash equivalents with central banks and reputable financial institutions. Our credit
book10 grew by 159% in 2023 to £528 million, from £204 million at the end of 2022. Our low loan-to-customerdeposit ratio (3.5%) is a reflection of a conservative approach to our rollout of credit products. Currently, our credit
portfolio spans across nine markets globally, seven of which are in Europe.
Throughout the year, we were comfortably in excess of all regulatory capital and liquidity requirements. The
recognition of the 2023 profit serves to further increase our capital surplus position, enabling us to continue toseize attractive investment opportunities (such as sales, advertising, and marketing, as well as launching new
products and new markets), and to be adaptable to changes in the economic and competitive environment.

Improving Financial Controls
Enhancing our financial control function remained a heightened area of focus throughout 2023. In particular, we
accelerated our hiring efforts at all levels to ensure we have both the required capacity, as well as depth ofexpertise. We migrated to a new subledger infrastructure that provides transaction-level insight into our daily
financial position, and have also undertaken a holistic exercise to redesign and document our close processes andcontrols.
These improvements have allowed our auditors, BDO, to increase their understanding of the business and to
evolve their audit procedures from an entirely substantive testing process in the past, to a predominantly controlsbased audit — employing advanced analytical procedures, better suited to provide assurance over a digital andtransaction-heavy business such as Revolut.
We are pleased that Revolut's transformation programme has now enabled us to return to a regular financial
reporting schedule. We are confident we have set solid foundations that, in the long run, will support our
expanding banking operations and will bring our financial processes in line with the standards expected frompublicly listed companies.

10

Defined as net loans and advances to customers under IFRSRevolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

17

5-year Lookback and Future Outlook
Revolut's Growth over Five Years

38.0m£1,798m
26.2m

16.4m

£923m

11.4m
£638m

7.8m

£438m
£222m

£167m

£40m
(£108m)2019(£25m)(£221m)2020
Revenue

2021
Profit / (Loss) Before Tax

2022

2023

Total Customers

I take this moment to look back and reflect, not only at the last year of financial results, but also at theextraordinary journey the Company has been through over the last half of a decade. During this time, our customer
base increased 5-fold, our revenues more than 10-fold, and we have built a sustainably profitable businessfollowing several early years of investment. From a product perspective, we’ve evolved from a travel card to an allin-one financial platform serving the day-to-day needs of consumers including daily spend, saving, and investing,as well as helping hundreds of thousands of companies manage their finances fully digitally. From a geographic
perspective — we’ve evolved from a regional to a global player with broad appeal across more than 35 countries.
Looking ahead, to the next year and beyond, we’re continuing to focus on increasing our customer reach,delivering the functionality our customers expect as they turn to Revolut for their primary banking relationship, as
well as bringing innovative financial products to market and expanding to new geographies. Based on an
encouraging start to 2024, we are positive and optimistic about Revolut’s growth and profitability prospects as we
continue on our mission to simplify all things money.

Victor Stinga
Chief Financial Officer
28 June 2024

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

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Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

19

Who We Are
Revolut exists to make managing, spending, saving, investing, and borrowing money cheaper, simpler, and moretransparent. Our mission is to simplify all things money. People and businesses want greater control over theirfinances and we provide a tailored experience to our customers through data-driven insights, empowering them tomake smarter decisions about how they spend, save, and grow their money. We deeply care about the trust that
customers place in us by ensuring that our platform is secure and reliable.
Revolut began in the UK in 2015 with transfer and foreign exchange services that were faster and cheaper thanthose of legacy banks. Since then, we have remained committed to addressing customers' needs, continuously
expanding our product offering, and delivering the best possible experience. Today, our team counts over 8,000
employees and we serve 45 million retail customers (as of June 2024).

2023

8,152
2022
5,913

↑38%

5,913

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Our History and Progress

2015
Revolut founded in the UK

2016
300,000 retail customers

2017$15 million Series A fundraising

Revolut Business
Crypto Trading across EEA
Revolut Premium$66 million Series B fundraising

2018
First banking licence granted by Bank of Lithuania
Revolut Metal$250 million Series C fundraising

2019
First expansion to Australia and Singapore
Trading - offering millions of customers access to
fractional shares
Donations - partnering with international charities tosupport global causes

2020
Revolut Insurance
US and Japan
Open Banking in UK and EEA
Revolut banking services in Lithuania and Poland
Merchant Acquiring for Revolut Business customers$580 million Series D fundraising

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21

2021
Banking across 18 EEA countries
Stays, a travel and accommodation booking featureFirst out-of-app services with Web App and Google
Chrome ‘Shopper’ extension$800 million Series E funding

2022
26 million retail customers
Revolut Business reached £100 billion in total
processed transactions
Deposit Guarantee Scheme for EEA Bank customers in
30 countries
Local IBANs in France
Revolut Chat - instant customer to customer
messaging feature
Personal Loans in Ireland, Romania, and the US

2023
38.0 million customers across 38 countries
Revolut in Brazil and New Zealand, and Revolut
Business in Australia
Local IBANs in Ireland, Spain and Netherlands, andbusiness IBANs in France and Ireland
Money Market Funds in the EEA
Personal Loans in Spain, Germany and France, andCredit cards in Spain and Ireland
Robo-advisor for automated Investing in the US
Joint accounts and Revolut Group Chat - a feature to
split expenses with friends in real time
Ultra, our exclusive top-tier plan for retail customers in
the UK and EEA
Revolut 10, the most substantive redesign of the
Revolut app since its inception
Revolut Reader - for in-person payments, and Tap to
Pay on iPhone for business and freelance customers inspecific markets

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22

Our Products and Services
Founded in 2015 in the UK, Revolut's early productoffered faster and cheaper transfers and foreignexchange services allowing customers to spend likea local in foreign countries from multi-currency
accounts. Today, Revolut is an ecosystem offinancial products, helping retail and businesscustomers with spending, saving, investing,borrowing, and managing their money.
Our retail offering enables customers to manage
their daily finances with our physical and virtual
cards, spend money abroad (with attractive foreignexchange rates), make instant peer-to-peer
payments, save money (via deposit protectedsavings and money market funds), invest and trade(e.g. stocks, commodities, and cryptocurrencies),and borrow money (including unsecured personalloans and credit cards).

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

With Revolut, retail customers not only gain asuperior banking experience, but also enjoy a bundleof lifestyle services — from booking their travelaccommodation to purchasing eSIMs.
Our paid
subscriptions, including Ultra, newly introduced in
2023, offer additional perks, such as insurance andbenefits from our partners.
Revolut Business provides banking solutions forsmall and medium enterprises. Our business productenables customers to get the solutions they needwhen they need it, including the ability to makepayments around the world (at interbank foreignexchange rates), manage spend without stress (withflexible approvals), accept payments easily fromanywhere (with both online and in person payments
products) and put money to work (e.g. throughsavings products).

23

Our Business Model and Strategy
To achieve our mission of simplifying all things
money, we focus on four key areas as part of ourbusiness strategy:
1. Becoming the primary financial services
provider for our customers
2. Designing best-in-class products andexpanding our offerings to meet the global
financial needs of our customers
3. Strengthening the trust that customers
place in Revolut by improving the security
and reliability of our platform
4. Continuing to grow our customer baseprofitably and expand to new markets
Primary Financial Services Platform
In the Retail segment, we focus on enabling morecustomers to use Revolut as their main bank account(i.e. deposit their salary and use core credit
products), by tailoring our products to local customer
needs. We are launching branches with local IBANs,
integrating with widely used local payment networks,
and building credit products, such as personal loans
and credit cards. We are also strengthening our
proposition as a spending account, through rewards,
financial planning tools, and a ‘global account’proposition underpinned by travel benefits andcurrency exchange. Lastly, we are driving adoptionof our wealth products, including money market
funds, robo-advisor, and money health tools forspending analytics and budgeting.

Best-in-Class Products
Customers enjoy using our products, rating us 4.9 on
Apple App Store and 4.7 on Google Play Store11. We
will continue to offer customers superior banking
products with a compelling user experience andcompetitive pricing.
We strive to make the banking experience as
simplified and frictionless as possible, fromonboarding to everyday transactions. Intuitive app UI
will continue to allow customers to see their finances
all in one place, while enabling personalisation basedon their needs. Further, we are strengthening our
product and services quality through resolution ofuser issues, minimising outages, and improving
quality control of our teams.

Monthly Transaction
Volume of £73bn
in Dec 2023

For Business customers, we continue to build key
localised capabilities, including more local IBANs for
European markets, local rails for tax payments, andlocal accounting tools. To help larger businesses, weare building spend management products, fromaccounts payable to expense management. Our
Treasury products will enable more businesses to
put their money to work and de-risk their business.
We are also developing the suite of products forbusinesses to accept payments both online and instore.

11

As of June 2024

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

24

Customer Security & Trust

Profitable Growth and Expansion

We continue to invest heavily in strengthening ourfinancial crime prevention teams and technology toprotect customers from falling victim to fraud andscams. We have robust protections in place for ourcustomers and analyse over 500 million transactions
a month. Our security capabilities include a machinelearning based fraud detection system, in addition toteams formed of 200+ fraud specialists, data
scientists and former law enforcement personnel. We
want customers to have greater control on theiraccount's security and are working on providing one
central hub to control all the security features andmore customisable limits on their account.

Further deepening our market penetration in ourhome markets in Europe remains a significant area ofstrategic focus. We will continue to invest in our
advertising and marketing activities to increase ourbrand awareness and attract new customers. To
continue the momentum in our business segment,
we plan to continue to invest in our direct sales
channel with a focus on serving larger businesses.

Reliable customer support is a key pillar of trust forcustomers. We are focused on substantially reducing
the overall resolution time for the customer while
improving the chat experience. We continue tostrengthen our award-winning customer support
through improved processes, training, and tools.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

Beyond European markets, we see great potential
across our newer markets in the US, Australia, New
Zealand, Singapore, Japan, and Brazil. In addition, weare preparing for launch in India and Mexico, andsetting the foundation for additional markets in the
future.

25

Our Values
Our people and culture are paramount to Revolut's success. We believe that brilliant people operating in a great
culture will produce the best outcome. Our values define ‘the Revolut way’, and we put them into practice every
day across our organisation. They keep us on the right path, motivate us and ensure we hire and retain the best
people. Our five values are:Never Settle

We constantly push, rethink, and rework to get 10x further from where we are now. We
aren’t afraid to be ambitious — and we’re always looking for the next big thing.

Shoot for the Moon•

Relentlessly push to become number one in the world. Look for ways to disrupt, scale, reinvent.

•Come up with ideas that are new, better and unique. Be creative — reiterate, simplify, movebeyond the traditional way. Connect the dots from different areas, industries, and products.

•

Vigorously set ambitious, bold, and rational goals to guide your way.

Push the Envelope•

Constantly change your lens. Challenge solutions from all angles to deliver the best. Run toward
critique to advance it even further.

•

Recognise and celebrate those who challenge the status quo for the better.

•

Pull at every thread. Don’t just meet the ask - go above and beyond when solving a problem andnever leave loose ends.

Jump in with Both Feet•

Enjoy the challenge, celebrate achievements, and have fun.

•Show initiative, inspire others. Enjoy taking on stretch assignments even if they’re outside of yourcore responsibilities.

•

Share optimism and confidence. Remain positive and energised when facing adversity.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

26

Dream TeamWe believe the key to winning is building diverse, lean teams of brilliant go-getters who
break down barriers.

Ship, Shipmates, Self•

Work together — it’s the only way the company can move forward. Forge a shared vision.

•

Support each other individually and professionally, across teams and departments. Even if it’s notin your KPIs or goals.

•

Be inclusive, approachable and interested in your colleagues’ work, especially if they need yourhelp or expertise.

Be Radically Honest, Direct, and Respectful•

Feedback should be necessary, clear, direct and professional. Always say what needs to be said.
Build on the feedback you receive.

•

Step up, speak up, encourage other Revoluters to do the same.

•

Be respectful at all times. Find the best tone of voice, time, and situation to provide feedback.

Never Compromise on Talent•

Make hiring decisions thoughtfully. Take the time to find the perfect fit. The quality and diversityof our talent defines our successes.

•

Provide mentoring, coaching, opportunities, and support to help your team thrive. Award the best.

•

Act on underperformance promptly. Monitor it, sort it and remedy it.

Lead by Doing•

Roll up your sleeves and get into the weeds of the work. Get to know the nitty-gritty, ins-andouts of your team to help guide everyone to success.

•Enable others to achieve their goals — celebrate when they’ve done well and give credit where
credit is due.

•Accept responsibility when things go wrong. Work quickly to make things right.

Think Deeper

We believe logic, reason, and common sense prevail over everything else in decisionmaking. We dive deep until we get to atoms. If we don't know something – we bet,collect the data and reiterate.

Start with 'Why?'•

Think before executing — articulate your problem, probe into it. Is it a real problem? Challenge
others to do the same. Seek data to support decision-making, if data is not available, betransparent that you’re making an instinctual recommendation.

•

Dive deep into the root cause. Solve from the first principles. Question experience, data andassumptions. Always ask: 'Is that true?' and 'why?'.

•

Constantly challenge your analysis, sense check, look from every angle and be prepared to revisit
the proposed solution or initial problem.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

27

Never Lose ‘North’•

Always think beyond the task at hand, keep the bigger picture in mind. Think several steps ahead.
(e.g. Will our solution create more problems? What will the next problem be once we solve thisone?). Look for ways to create scalable frameworks and tools to increase the impact.

•

Avoid ‘analysis paralysis’ so that we move toward solutions.

•

Focus on the outcome and continue checking your compass along the way (i.e. Are we still goingin the right direction?). If not, take courage to start from scratch.

Be Open Minded – Listen, Probe, Adjust•

Invite criticism and alternative views to tackle problems better. Constantly challenge assumptions
in your thinking. Do not follow any previously agreed-upon approach blindly.

•

Take turns speaking and listening. Consider all feedback regardless of the person's title. There isno place for politics in Revolut.

•

Think through your recommendation, don’t say 'yes' or 'no' too quickly.

Get It Done

We believe that ideas are great, but execution is everything. That’s why respect at
Revolut comes from sweat and stretch.

Commit and Execute•

Bring a can-do attitude at all times. Keep calm when facing challenging work.

•

Unblock roadblocks. Break walls. Persevere until the project is finished. Completion is a must. And
then iterate.

•

Deliver on commitments, instil trust in your go-getter attitude.

Act like an Owner•

Own your work and the tasks required end-to-end. Look for answers and solutions, not excuses.

•

Assume full responsibility and accountability beyond your role or over expectations. Don’t wait for
guidance, self-direct.

•

It is never 'someone else’s job or problem'.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

28

Deliver Wow

We believe that everything we do should solve our customers’ needs. To create awe
and inspire, we pay attention to every single detail.

Put Customers First•Put yourself in the shoes of the customer (external or internal) and understand how they are using
the product or process, be curious.

•

Focus on, and think through every single detail.

•Don’t ship anything unless it’s ready, fully-baked, tested and reviewed.

Keep It Simple•

Simplify everything – minimise any friction for the customer. Save time for your customers, yourmanager and your stakeholders.

•

Make decisions on what to build and what to kill.

•

Use language everyone can easily understand. Extract the essence. Lead with the most important
information. Bottom line up front.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

29

Customer Growth and Safety
Total Retail Customers

2023

38.0m
↑45%

Our Retail customer base increased by 45% reaching
to 38 million by December, with 71% of of new sign
ups in the year organically, or from word of mouth.
The number of users on paid plans grew by 41% year
on year, while number of monthly transactions grewby 73%. Our monthly active customer base grew by
47%. Becoming the primary financial services
platform for our customers is another part of ourstrategy – we are pleased to share that during 2023,
we saw an impressive 68% growth in customers
using Revolut as their primary account.
As our customer base grows, we are also committed
to delivering the best possible customer support.

2022

26.2m

•

We introduced an upgraded chatbot which
drove a twofold increase in the proportion ofcustomer chats handled without a humanagent, while the NPS score doubled•

Our highly specialised customer support
team grew by 32% from nearly 3,000 in
2022 to over 3,900 members in 2023
(including outsourced resources)•

In addition to our 24/7 support in 100+
languages, we launched new supportchannels, including email and outboundphone support as part of our Ultra plan•

We significantly decreased the overall chatresolution time, reducing it to one-third of its
2022 level•

We introduced live tracking of open user
requests, which allows customers to track
the status update of their cases that mighttake a longer time for resolution•

Revolut's customer support function earned
the Gold prize in both the International
Customer Experience Awards 2023 (iCXA)
and the Collaboration Network Awards

Number of Monthly Transactions

2023

590m
↑73%

2022

341m

Customer Protection
According to a study conducted by the non-profit
organisation Global Anti-Scam Alliance (GASA) anddata service provider ScamAdviser, over $1 trillion
was lost to scams worldwide in 2022. In 2023, thefraud landscape underwent significant changes withthe emergence of new technologies to facilitate
fraud.
At the forefront of Revolut’s security measures is our
proprietary fraud detection system, employing
cutting-edge machine learning and artificial

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

30

intelligence methodologies. We have 200+ fraud
specialists, data scientists and former law
enforcement personnel as part of our financial crime
who are instrumental in preventing our customers
from falling victim to scams and fraud. We estimatethat in 2023, Revolut prevented about £475 million in
potential fraud against our customers.
In 2023, we further strengthened our advanced,
data-science based techniques to detect andprevent fraudulent activity.
In particular:••

We rolled out a new machine learning
platform, enabling us to analyse 500+ million
customer transactions every month for signs
of fraud. This allowed us to update our fraud
detection models to provide the same levelof sophisticated protection for nonconventional payment methods.
We adapted our customer-facing scamwarnings and interventions to make themmore interactive and adaptive. We created asolution that allows us to tailor and adapt
the intervention questions based on themodus operandi typically used for the typeof scam that the customer is at risk of falling
victim to. This increased our effectiveness in
helping customers recognise suspicious
activity and pushing them to rethink before
making a high-risk payment. It also helped
us better warn customers of emerging scammodalities.

•

We introduced biometric verification forcustomers' savings & investments.

•

We further advanced our systems toescalate highest risk scam cases to a
dedicated fraud prevention team, whilst
more than doubling the size of that team.
These
specialists
interactwiththecustomers to assess the case and take theappropriate action.

••

We leveraged social media channels toillustrate security features that customers
can rely on for their everyday transactions,making the information more relatable using
examples such as scams involved in buying
concert tickets online and online shopping.

•

Our complex investigations capability, which
includes former law enforcement personnel,
allowed us to work closely with law
enforcement globally, and resulted in arrestsof individuals involved in organised criminal
activities targeting our customers.

Future improvements will focus on providing ourcustomers with additional user-controlled securitydriven features to help keep their accounts andmoney even safer.

Cybersecurity
In 2023, we made significant security improvements,
including strengthening our perimeter security inresponse to growing geopolitical threats, as well as
enhancing our mobile application security andrelated financial crime controls, reducing AccountTakeover incidents to minimal levels. We have alsoutilised in-house technology to enhance theeffectiveness and scalability of our vulnerability
management and security testing programmes.
Revolut scaled its proprietary employee accessmanagement systems, IT security controls, and‘zero-trust’ solutions to ensure high-quality security
measures to support organisational growth. We also
obtained a SOC2 Type 2 audit report to provide
independent assurance on the effectiveness of our
security controls.
At Revolut, we remain committed to continually
improving and innovating in the security area,
ensuring our customers can trust in the safety of our
products.

Our scam awareness education programme
continued in 2023 where we used various
channels to educate and warn customers
about emerging fraud and scam trends.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

31

We analyse over 500 million
customer transactions permonth for signs of fraud

Product Innovation
RetailWe continued to strengthen our product suite to
become the primary financial services provider forour customers. In 2023, we saw a 68% year on year
growth in the number of customers using Revolut as
their primary account. Revolut is a licenced bank in
30 countries in the EEA and in 2023, we rolled out
local IBANs in Ireland, Spain, and Netherlands, withmany more planned in 2024, to provide ourcustomers with local account details so that they canuse Revolut as their main accounts for core everyday
banking needs.
We also expanded our credit products to bettersupport customers for their major financial needs. In
2023, we launched personal loans in France,
Germany, and Spain, as well as credit cards in Irelandand Spain. We now offer credit products in ninecountries with a credit book12 of over £500 million,
with plans to further expand our coverage. There area range of other core banking features in our productroadmap including mortgages and refinancing loans.

12

We expanded our savings and investments products
to help customers grow their money. We launchedmoney market funds across 22 countries in the EEA
with deposits reaching £1.5 billion, as well as Roboadvisor in the US and EEA to help customers begin
their investing journeys. We also improved ourmoney health tools to help customers better
understand their finances by revamping andexpanding the feature set for spending analytics,
budgeting and total wealth analytics. In 2023, over
2.8 million customers saved a total of £714 million
rounded up through Spare Change, up 30% year on
year. Customers can also manage finances with theirpartners efficiently with joint account analytics. We
also saw a growth of 67% in the number of parents
and children using Revolut <18 during 2023.
We have been seeing a steady increase in thenumber of customers making full use of Revolut’s
services through paid subscriptions, with 41% growth
in retail customers opting for a paid plan.
In line with our mission to simplify all things money,
we also made the biggest change yet to our app
experience with the launch of Revolut 10. It is a new,simplified, personalised app experience that allows
customers to take care of all their money tasks more
quickly than ever.

Defined as net loans and advances to customers under IFRSRevolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

32

We launched the following products for retailcustomers in 2023:••

Money Market Funds: With high inflation
rates, our users are looking for better ways
to safely grow their income. With Flexible
Accounts, users can now invest theirsavings in the same money market funds
that global corporations and investors use toshield their cash from inflation, making a
product that was previously accessible tothe few, available to everyone.
RevPoints: We launched RevPoints, ourloyalty programme, in five countries: Malta,
Spain, Portugal, Croatia, and Greece. UK and
our remaining EEA countries are planned tolaunch in 2024, which will make it the firstpan-European debit card loyalty programme.
Customers earn RevPoints on their everyday
card spend and on using Revolut products
and can redeem them for Airline Miles ordiscounts on Revolut products with many
more benefits coming soon.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269
Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269•

Robo-advisor: Robo-advisor allows ourcustomers to automatically invest in predefined portfolios, spanning a wide range ofrisk levels from Conservative to Aggressive.
This offering allows Revolut to address theneeds of the majority of our customer base
who take a more passive approach toinvesting.

•Ultra: Ultra is our new top tier plan in the UK
and EEA with over £4,000+ in annual
benefits, offering exceptional and uniqueperks for investing, travel, and lifestyle,including unlimited lounge access and'cancel for any reason' insurance. We also
introduced 11 new partner subscriptions
bundled within our premium plans at no
additional cost, including Financial Times,
Nord VPN, ClassPass and more. In 2024, weadded 3GB of monthly global data on eSIMs
as a complementary benefit on Ultra.

•

Joint Accounts: Revolut has made it easyand seamless for customers to open a joint
account, allowing them to collaboratively
manage their money with their partner. Thisfeature enables users to coordinate
expenses and savings goals effortlessly.

•

Group Chat: We launched a new chatfeature that simplifies splitting expenses
with groups of friends in real-time. No more
spreadsheets,cash,
orawkwardconversations. With Revolut Groups Chat,customers can create a group chat with theirfriends, add expenses as they come up, and
let Revolut do the rest.

33

our larger customers, allowing them theflexibility to give the right colleagues theright access.

Business
Within Revolut Business, substantial improvements
were made to the core of our product in 2023.
Notably, local IBAN details were introduced forFrance and Ireland, making local payments evenmore seamless in those markets. To enhance global
transactions, we implemented exotic currency
corridors, introduced Revtags and payout links, andstreamlined the process with Tap to Pay on iOS andthe Revolut card reader.
Expanding our financial offerings, we introducedsavings accounts in the UK and we have plans tolaunch similar treasury products in the EEA in 2024.
Furthermore,werefinedaccount
controls,
encompassing enhancements in account privacy,
configurable spend controls, and the introduction of
intricate payment approval rules, empowering seniorbusiness leaders to manage their business’ finances.

•

Revtag: Business users were given a
streamlined process to transfer funds toRevolut Retail users via Revtag. This feature
has seen significant use by both Revolut
Retail and Revolut Business customers.

•

FX Forwards in EEA: Our flexible FX Forward
product was extended to many of EEA
markets in 2023. This product allowed
customers to hedge their foreign exchange
risk in USD, EUR and GBP to notionalamounts in the millions of GBP equivalent.

•

Tap to Pay on iPhone: This featureempowers businesses and freelancers toaccept diverse forms of contactless
payments, including Apple Pay, contactless
credit and debit cards, and other digitalwallets, all without the need for additional
hardware or terminals.

•

Payment Links and API: Merchants can now
customise their hosted payment pages with
their own branding, issue re-usable payment
links and scale payment links generation via
merchant API, to streamline their ecommerce operations.

We launched the following products for businesscustomers in 2023:•

UK Savings: Business customers on any ofour paid plans can earn competitive interest
rates.

•

Account Privacy: We launched a featurethat allowed business administrators to
select which pockets an employee can viewand control. This gives significant control to

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

34

Global Expansion
We continued to pursue our global expansion in 2023
across different markets:
United States
In the United States, we continued to grow ourcustomer base. Our business model in the UnitedStates is dependent on the provision of services
from sponsor banks. As of the authorisation date of
the Annual Report we are in the process of switchingsponsor banks in the US. See Note 34 for further
detail.
Latin America
We launched Revolut in Brazil, our first market inSouth America, and were granted authorization by
the Central Bank of Brazil to operate as a Direct
Credit Society (SCD). This will allow us to expand ourportfolio of products and services in the Brazilian
market.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

Revolut made notable progress on building out its
operations in Mexico in 2023. In April 2024, The
National Banking and Securities Commission (CNBV)
gave in-principle approval for Revolut to establish
itself as a bank. This licence will allow Revolut tooffer a wide range of financial products and services
to users in Mexico.
Asia Pacific (APAC)
Our APAC operations saw continued growth. We
launched Revolut in New Zealand, as well as Revolut
Business in Australia—marking our first Businessmarket in APAC. In 2023, we saw continued progressin building out our operations in India. Thisculminated in Revolut receiving an in-principle
approval to issue Prepaid Payment Instruments (PPI),
including prepaid cards and wallets in 2024. We
began internally testing our India product, and the
Revolut app is set to launch in 2024.

35

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

36

Building and upholding strong relationships with our
stakeholders is pivotal to Revolut’s success as we
continue to expand our global footprint, productsuite, customer base and employee headcount.
When making decisions, the Board is mindful of its
responsibilities under s172(1) of the Companies Act
2006 to promote the long-term success of thecompany with regard to our range of stakeholders. In
this section, we set out steps that we have taken asa Group to engage with our key stakeholders.

Our Customers
In 2023, Revolut scored an impressive user rating of
4.9 on Apple App Store and 4.7 on Google PlayStore. This is the result of Revolut's steadfast
commitment on taking a customer-centric approachin all our products and services, ensuring our users
get a superior experience.
One of our key company cultural values is Deliver
Wow: our belief that everything we do should solve
our customers’ needs. We break this down into two
components: putting customers first and keeping
things simple.
In line with our mission to simplify all things money,
we aim to provide a frictionless experience for ourcustomers by eliminating any barriers due to
traditional borders, intermediaries and bureaucracies
of finance.
Safety of customer money is of utmost importanceand thus maintaining strong fraud controls is one of
our highest priorities. To this end, we have an
established operating model for fraud prevention
within our Financial Crime department.
Revolut continues to take a data-driven approach to
fraud management, using sophisticated fraud
modelling controls for both inbound and outboundtransactions to prevent and detect fraudulent funds
entering Revolut accounts, whilst also protecting
Revolut customers from falling victim to fraud andscams.
We place a significant focus on customer educationand industry collaboration, releasing a series of fraud
awareness communications related to current andemerging fraud threats. We also focus on developing
and reinforcing our links with industry, law

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

enforcement, regulators, governments and consumer
groups to combat fraud and scams. This includes
engagement with the UK Payment Services
Regulator and UK Finance as well as active
campaigning for fraud to be included in the Online
Safety Bill and for Big Tech to be held to account for
enabling fraud and scams. Our Head of Fraud alsosits on the Advisory Board for Cifas, the UK fraud
prevention agency.
Building and strengthening trust with our customers
is one of the key priorities for us as a financial
institution. We continuously work towards improving
the quality of customer service we provide to ourcustomers when they need help. We invest in
training our agents, upgrading our tools andprocesses to make our support faster and more
effective.
In 2023, we continued to focus on enhancing our
infrastructure, culture and frameworks to deliver
good outcomes for all of our customers, in line with
Consumer Duty principles. Providing good outcomeshas been the foundation of how we've grown, and to
us means that we ensure our financial products andservices consistently deliver real beneficial results
through focusing on customers' needs and interests
allied with transparent information. Our commitment
is to treat all customers fairly, supporting them inachieving their financial objectives, and ensure that
their interactions with us are positive andempowering, aligning with principles set out by ourregulators. We are also dedicated to understanding
and addressing the unique requirements ofvulnerable customers, ensuring they receive thenecessary support and care in their financial journeywith us.

37

Revolut is committed to responsible handling ofcustomer data, aligning our practices with GDPR andthe evolving global landscape of data protection
legislation. We follow the principles of privacy bydesign in our product development cycle and ensurethat personal data is processed fairly, transparently
and without bias.

Our Employees
For more on how we engage and manage our employees as strategic stakeholders, refer to the 'Our People'
section (page 40).

Our Investors
Our investors have been integral to Revolut's
continued growth and success as their capital has
fuelled our rapid expansion and empowered us tonavigate potential economic headwinds withconfidence. Their investment in Revolut not only
signifies an endorsement of our mission but also
helps us to pursue further growth while continuously
innovating to better serve our customers' evolving
needs.
At Revolut, we recognise the significance of
maintaining open communication with our investors.
We remain committed to providing regular updates
on our performance, ensuring that our investors are
well-informed partners in our journey towards
sustained growth.

Our Regulators
Revolut maintains active engagement with numerous
regulatory bodies across various jurisdictions
worldwide. Our primary regulators are the Financial
Conduct Authority (FCA) in the United Kingdom andthe Bank of Lithuania (BoL). As of 1 January 2024,
Revolut moved under direct supervision of theEuropean Central Bank (ECB) through Revolut Bank
UAB headquartered in Lithuania. This marks animportant milestone in Revolut’s journey as a bank inEurope, as we now join the 100+ largest and mostsignificant banks in the Eurozone, also under ECB
supervision.
Ourinteractions
withregulatory
authorities
consistently reflect our commitment to transparency,
cooperation, timeliness, and accuracy. Throughout
2023, we held discussions with our regulators,

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

addressing a spectrum of priorities and emerging
trends. At the heart of our commitment lies not only
the provision of requisite management information
for regulatory compliance but also the sharing of
insights into our innovative approaches to tacklingindustry challenges. With this commitment to ourregulators, we aim to foster collaborative
partnerships while navigating the dynamic landscapewithin which Revolut operates.
Our real-time data analytics empowers Revolut toserve as a useful resource for regulators, swiftly
identifying and addressing emerging themes inpriority areas such as fraud and customer
behaviours. This approach enables an agile response
to current challenges, while anticipating future
trends, fostering a safer and more innovative

38

financial ecosystem. By providing industry data as aresource to regulators, we strive to create positive
developments in the regulatory environment that will
benefit both consumers and regulated businesses.
Our philosophy on regulatory relationships extends
across all of our key stakeholders. In the UK, thisincludes but is not limited to the Financial Conduct
Authority (FCA), Prudential Regulation Authority(PRA),
Payments
Services
Regulator(PSR),
Competition
andMarkets
Authority(CMA),
Information Commissioner's Office (ICO), National
Crime Agency (NCA), The Gambling Commission,
The Home Office.
New Licences and Authorisations
In 2023, we advanced our collaboration withregulators to expand our global regulatory
permissions.

In Europe, Revolut Bank UAB received consumer
credit freedom of service (FOS) passporting in Italy
and Portugal.
Revolut Bank UAB established branches under
freedom of establishment (FOE) in the following
countries: Belgium, France, Germany, Hungary,
Ireland, Netherlands, Portugal, Romania, and Spain.
RT Digital Securities Cyprus Ltd has obtained Virtual
Asset Service Provider (VASP) registration in Italy
and Spain.
Additionally, Revolut obtained various regulatory
permissions in other regions: in Brazil — Sociedadede Crédito Direto (Direct Credit Entity), in the US —Investment Advisers Registration (Robo Advisory),
and in India — Prepaid Payment Instrument (PPI).

Our Partners and Suppliers
We are dedicated to expanding our strategic
partnerships, which play a crucial role in enhancing
our
value
propositiontocustomers
andstrengthening our supplier connections. As wecontinue to broaden our services and geographicalpresence, these partnerships remain vital. Trust
forms the cornerstone of our relationships with bothpartners and suppliers, and we remain steadfast in
upholding mutual benefit and adherence to ourrigorous standards of business conduct.
Revolut remains committed in its adherence to allapplicable anti-bribery and corruption laws andregulations. Our stance against bribery andcorruption in any guise is unequivocal. Transparency
and integrity underscore every facet of our businessengagements, ensuring that neither our employees
nor any affiliated third parties engage in or condone
any form of improper advantage. Prior to entering
into contracts, all significant third parties undergo
rigorous due diligence assessments conducted byour third party risk team, with periodic
reassessments scheduled thereafter. Additionally, allemployees receive comprehensive training toadeptly identify and address any instances ofunethical behaviour.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

Revolut is firmly committed to upholding ethicalstandards and acting with integrity in all its business
relationships. As part of this commitment, Revolut
has a zero-tolerance policy towards modern slavery,
dedicated to ensuring there is no modern slavery or
human trafficking in any aspect of its operations or
supply chains. Revolut's policy emphasises theimplementation and enforcement of effective
systems and controls to prevent the occurrence ofslavery and human trafficking in its supply chains.
These systems and controls include, but are notlimited to: third party due diligence, conducting risk
assessments of suppliers, contractual provisions for
suppliers to confirm their adherence to Revolut's
policy, and a robust mechanism to ensure the quick
escalation of issues relating to modern slavery andhuman trafficking.

39

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

40

Revolut maintained its position as a highly respected
employer, most notably receiving a Great Place toWork certification in eight different countries: UK,
Spain, Poland, Portugal, India, Lithuania, Romania,and Hungary.
Attracting, retaining and nurturing talent while
fostering an inclusive and diverse work environment
remains of paramount importance to us. Our teams
define our success, and we are committed toenhancing
theirworkplaceexperienceanddeveloping their skills.

access to a Revolut workspace but should benefit
from the same opportunities of team engagement.
For this reason, in 2023 we spent £5.3 million on
engagement activities allowing team members to get
together in person and overcome some of thechallenges arising from remote work. Overall, we aredelighted with the success of our real estate andengagement allowance policies and look forward tofurther building on it in the future.

Our high performance culture has been made moreclear through value-based behaviours - clear andactionable behaviours that ensure all employees
know how to embody the Revolut culture. We’ve
launched an Anytime Feedback mechanism where
employees can openly or anonymously share
feedback on peers; identifying strengths and areas
for improvement in line with the values-based
behaviours. Our Culture Lab team continues with theaddition of Applied Behavioural Scientists who havebeen instrumental in redeveloping our employee
engagement surveys to best understand our
employees’ concerns and motivators.
We continue to invest significantly in our people
managers through our RevManager Essentials
Programmes. As of the end of 2023, more than 95%
of our managers had been certified through thisprogramme.
At Revolut, we are proud to have cultivated anenvironment where employees are both challenged
and supported to reach their full potential. In 2023,
746 of employees have benefited from opportunitiesof lateral or vertical move within the organisation tocontinue to grow and develop.
Our real estate policy continues to support our global
workforce; offering the vast majority of our teammembers the option to choose when and how often
they would like to work from home or visit theworkplace. In 2023, we launched our first Tech Hub
in Barcelona to offer voluntary temporary relocationand maximise the opportunities close in-person
collaboration offers across all types of teams. We
also recognise that not all of our workforce has ready

Code of Conduct
At Revolut we believe that amazing people working
in a high achieving culture is essential to providing
the best experience for our customers. Key to this is

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

to ensure that our behaviour towards each other ishonest, transparent, and respectful.

41

Our code of conduct sets out the principles thatguide us on the ways to behave and emphasises the
expectation that our employees act with integrity
and in the best interests of our customers, people,
communities and wider stakeholders at all times. Ourcommitment to these values is reinforced throughregular, comprehensive training programs, which
help maintain high ethical standards and alignemployee actions with our core values. The
effectiveness of our approach is reflected in ourstrong customer relationships and high employee
satisfaction.

Diversity, Equity, and Inclusion (DEI)
At Revolut, as we continue to build our Dream Team,we want all employees to feel valued, accepted,
respected and included during their time with us. We
know how crucial this sense of belonging is toenabling our people to reach their full potential. That
is why we are dedicated to fostering a culture ofdiversity, equity and inclusion.

In 2023, we continued to collect important data thatenables us to shape our action plans and make datadriven decisions regarding inclusion and diversity
efforts. We have managed to increase ourcompletion rate from 78% to almost 85%, meaning
we have a clearer picture of gender, race, disability,
religion, socioeconomic background, sexuality andgenerational representation as well as those withparenting or caring responsibilities across theCompany. This helps us measure the diversity of ourworkforce and assess how best we can continue todiversify and build an inclusive environment for all
Revoluters.
In our ongoing efforts towards gender equality, we
published our UK Gender Pay Gap report for 2023,
showing that our journey is progressive but we still
have a way to go in achieving balance. We havenarrowed the mean pay gap by 5.84% and have
reduced the median bonus gap to nil, which is
explained by increased number of women in higher
paying roles and seniorities. Ensuring women's
representation in senior positions remains a toppriority for us, crucial for both fostering diversity andnarrowing the gender pay gap. To achieve this,
we've taken proactive steps, leveraging behaviouralscience to eliminate unconscious bias in our hiring
practices, as well as tailoring our employee branding
to attract talented women. Furthermore, we areenhancing visibility and transparency in our flexible
working processes, with a specific focus on
supporting employees with parental or caregiving
responsibilities throughout their career journey.
Additionally, we have implemented changes in our
performance review process aimed at increasing
progression and promotion opportunities for
employees at Revolut. We are proud to haveappointed Francesca Carlesi as UK CEO andincreased female representation on our Executive
Committee.
We are still dedicated to supporting our inclusive
guilds programme as a key avenue to championing
inclusion. Revolut's Guilds have achieved notable

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

42milestones this year, with over 32% of our global
headcount actively participating. Inclusive Guilds,
such as RevWomen, Parents and Carers, Pride(LGBTQ+), Reach (Community), Impact (ESG), andWellbeing, serve as vital components of ourdiversity, equity, and inclusion efforts, contributing to
our 'Belong' pillar. RevWomen has partnered with theleading non-profits to raise £35,000 and hosted
well-attended skill-building workshops, while the
Parents and Carers Guild organised a successful'bring kids to the office' day. The Pride Guild
introduced 'Rainbow Talks' and participated in Prideevents globally, and the Reach Guild's focus on
cultural celebrations boosted membership andconnection across our global workforce. The Impact
Guild gained access to the Fintech Pledge andcollaborated with United Learning, and the Wellbeing
Guild focused on employee wellness throughbootcamps and informative sessions.
We made great strides in 2023 and we are keen tocontinue progressing positively with diversity, equity
and inclusion. We report to our Group Board andGroup Executive Committee, who ensure diversity,
equity and inclusion is front-of-mind in all decision
making and company-wide priorities. It is with theirdrive and championing that we are able to celebrate
the following successes:•

Reaching 21% female representation inleadership roles as we progress towards ourcompany-wide target of 30% of women in
leadership by the end of 2025.

•

Improving our promotions representationfrom 35% women to 44%.

•

Continuing to attend Pride parades andhosting celebrations in our offices acrossthe world during Pride Month.

•

Reviewing our employee policies andensuring they are as inclusive as possible inlanguage and in scope.

•

Educating employees through webinars,
raising awareness in areas such as: theexperiences of working parents, theimportance of well-being, Black History
Month and Pink October.

•

Fostering engagement and belonging with
RevSocials specific to areas of diversity
including: our International Women’s Day
social, Pride socials and parents and carers
socials.

Engagement with Employees
Over 93% of our workforce actively participates inengagement surveys conducted through ourproprietary feedback platform, Revolut Voices. The
aggregated results are accessible through ourinternal resources. To facilitate the Board in their
responsibility to ensure the Group maintains a strong
and healthy corporate culture an engagement
metrics pack is shared regularly for their review.
Sponsorship from the Board in these areas has
supported a thorough review of the company's
diversity and inclusion strategy including creation of
initiatives aimed to narrow the gender pay gap.
Introduction of Anytime Feedback provides anopportunity to provide more frequent feedback totheir colleagues outside of performance and survey
windows. In Q4 2023, 95% of managers in customer
facing roles and 82% of managers in non-customer
facing roles received upwards and ad-hoc reviews. It
also helped to improve our managers scores, withthe most notable improvement coming from ourbottom 10% of managers in 2022 who have seen an
increase of 52% on average in their eNPS (employee

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

net promoter score) from 32% to 49%. Manager
eNPS is calculated based on the number of positive
upward reviews a manager receives minus thenegative reviews.
In addition to last year’s program, Revolut Spires
which aims to prepare employees for drastic
functional career shifts, we have introduced the High
Potential Development programme (HiPo) to develop
our future leaders. The programme is structured tooffer a blend of hands-on experience, leadershipdevelopment, and exposure to various departments
within the company. By immersing themselves indifferent areas of our business, the candidates gain aholistic understanding of our operations and build astrong foundation for the future career growth. 2023
has also marked the first three month internship, theRev-celerator programme, aimed at students. The
overwhelmingly positive feedback from both theinterns and the managers, as well as 100% offer rate
has inspired us to add more tracks for the futurecohorts, and also set up the 18 month Rev-Advance
programme, focused on Executive Associate and43

Risk and Compliance tracks for recent graduates andyoung professionals.
As a remote-first company, we have adapted to work
efficiently in teams spread across the globe, with anaverage of 3.9 nationalities per team, typicallyhaving between 4 and 14 employees. To provide
opportunities for more social interactions, we haveconducted 168 events, and introduced Travel
Engagement Budgets to allow teams to meet up,
with over 40% of employees participating in thesocial activities.

Equal Opportunities
We maintain our commitment to treating all
employees and job applicants with dignity, fairness
and respect ensuring we provide equal opportunities
to all irrespective of their personal characteristics.
Creatingadiverseandharmonious
work
environment free from any form of discrimination,harassment, bullying or victimisation is crucial to ourDream Team value.
Working together to maintain a positive working

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

environment is essential for achieving our sharedgoals and fostering a safe working environment. Anybehaviour that risks this is dealt with seriously via
our harassment, bullying and disciplinary policies.
Our goal continues to be to foster a work
environment where everyone feels supported and isable to share and celebrate their individuality.
Building a workplace culture that benefits everyone
at Revolut is at the heart of how we work with ourpeople.

44

Employing People with Disabilities
Adherence to the Equality Act 2010 and our Equal
Opportunities policy allows us to ensure our team aresupported. We continue to recognise the importanceof providing reasonable adjustments to support job
applicants and colleagues with disabilities andensure everyone feels valued and supported
throughout their employment.
In 2023, we actively promoted the importance ofdiscussing mental health as well as how we can
support each other. Senior stakeholders within thecompany shared how they have required support for
their own mental health concerns.

We firmly champion merit-based advancement,
rewarding the hard work and dedication of all
employees. This focus on merit underscores ourcommitment to fairness and the provision of equal
opportunities for growth. By integrating thisapproach with our dedication to inclusivity andsupport, we strive to cultivate a workplace where
every individual feels empowered to achieve their fullpotential, supported by both our policies and our
culture.

Reward and Employee Share Ownership
At Revolut, we know that our employees are thedriving force behind our success. That's why weshow our appreciation for our team members
through our actions. We offer our employees theopportunity to earn a portion of their total reward
package in the form of Revolut share-based awards.

These share-based awards (in the form of options or
RSUs in certain geographies) offer our teammembers a tangible stake in our company's future
success and growth, as well as the opportunity tobenefit financially from that success.

The Revolut Partnership Programme
In 2023, we continued to build out the Revolut global
Partnership Programme, designed to reward
exceptionally high-performing employees with atrack record of contribution to the business,
exceptional integrity and a consistent commitment to
Revolut's mission and values as a culture champion.
Our partners are elected based on their contribution
to the entire organisation and ongoing commitment
to our core values.

to the company's overall success by joining the
Revolut Partnership Programme in the coming years.

New Revolut
Partners in 2023

We finished 2023 with 23 Partners in the Partnership
Programme, following the election of two newmembers. The nomination round consists of a reevaluation of the competencies and skills of existing
partners, standardised over a set of contribution
metrics, making this a highly selective process.
Partners have been acting as role models to all
Revoluters and have been successfully pushingcritical company initiatives. Similarly, we would like toacknowledge the hard work of the many potential
candidates who were not selected this year. We lookforward to more exceptional colleagues contributing

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

45

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

46

Environmental, Social, and Governance (ESG)In 2023, we defined the company's ESG strategy and committed to a number of impactful and innovative initiatives
in order to promote meaningful change in the coming years.

Making a Difference
Donations
As we have highlighted in 2022 and in previous
years, we are proud to have continued ourcommitment to supporting charitable causes andhelping our customers make a difference.
Reflecting on the year 2023, Revolut's journey ofmaking a tangible difference through supporting
charitable endeavours has been both profound andimpactful. Our Donations platform has seen a total ofnearly £8.5 million from our users, reflecting thespirit of generosity of our customers. With our charity
partners receiving 100% of the user donations, it
underscores our commitment to supporting
charitable causes and facilitating meaningful change
on a global scale.
Among the year's highlights, the Ukraine War First
Anniversary appeal stands out. Over £1 million was
raised by our customers for various global charities(Red Cross, UNHCR) and local charities (British
Ukrainian Aid in the UK, Siepomoga in Poland) tosupport those affected by the ongoing conflict. Thisinitiative, in collaboration with various charities,
exemplifies our dedication to providing aid in timesof crisis. Notable among them is Revolut's
collaboration with the charity match Game4Ukraine
which took place at Stamford Bridge Stadium in
London, captained by ambassadors of thefundraising platform UNITED24, Andriy Shevchenko
and Oleksandr Zinchenko. As part of the support,
Revolut
donatedover£300,000forthereconstruction of the Mykhailo-Kotsiubynsky Schoolin Chernihiv Oblast. As a recognition of our Ukraine
relief activities, we have been honoured to receive
an award from UNITED24 signed by Volodymyr
Zelenskyy.
The Holiday Season Campaign was anothersignificant endeavour, raising nearly £250,000 tocombat homelessness, poverty, and hunger during
the winter season. This campaign, supported by acoalition of charities, showcased the depth of our

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

users' willingness to support those in need during themost challenging times of the year. Additionally, ourinvolvement in the Royal British Legion's Poppy
Appeal, which raised about £32,600 highlights ourcommitment to honouring veterans and service
personnel, alongside their families.
The year also brought its share of emergencies, towhich our platform and users responded withunwavering support and solidarity. The appeal toraise funds for those affected by the earthquake in
Turkey and Syria Earthquake mobilised £1.3 million inaid, showcasing the power of community in the faceof natural disasters. Additionally, the donations
totalled nearly £100,000 each for response to the
Ukraine Kakhovka dam collapse and Greece
Wildfires.

47

As we look ahead, the resolve to continue ourcharitable efforts remains stronger than ever. The
generosity of our users, coupled with our innovative
platform, has made a significant impact acrossvarious causes and emergencies worldwide. Ourjourney of making a difference is far from over, andwe remain committed to supporting our global
community through both planned campaigns andemergency responses. The year 2023 has been aremarkable chapter in our ongoing story of giving,
and we eagerly anticipate the opportunities tofurther this mission in the years to come.
Notable Partnerships
We partnered with Comic Relief to make donatingeasier and more accessible, enabling Revolut
customers to support Red Nose Day and contributeto Comic Relief's critical work. This collaborationreflects our commitment to making a positive impact
on society, offering a simple and convenient way forour customers to give back.
World Food Day, in partnership with the UN World
Food Programme, saw our community contributeover £180,000 towards combating global hunger,emphasising the importance of food security and therole of collective action in addressing this criticalissue.

Equally noteworthy is our continued partnership for athird year in a row with the RTE Toy Show in Ireland,
which brought in £2.4 million from nearly 150,000
users, further cementing our role in supportingchildren's charities across Ireland.
Promoting Green Businesses
Revolut Business is growing its customer base - anddoing so in an environmentally conscious way. On an
ongoing basis, Revolut continues to target andattract companies that aim to minimise the negative
impact on the planet from their operations and sellsustainable products. Existing business customers
such as Wild (a natural deodorant company), areusing Revolut to scale, as they reduce customers’
reliance on single-use plastic.
In 2023, Revolut committed to introduce an
incubator programme targeted at low carbon impact
businesses. This programme is currently being
designed and will be officially launched in 2024.
Eligible businesses will be offered heavily discounted
Revolut Business products, along with beta access tocertain products and to expert product owners.
Qualification for this programme will be based on anumber of criteria, in line with Revolut’s overallsustainability goals.

Customers donated£8.5 million via
Revolut in 2023

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48

Energy Usage and Greenhouse Gas Emissions
Our current offices in London and Vilnius use 100%
renewable energy. Our new, all-electric London
office, which is anticipated to open in May 2025, hasbeen freshly re-designed by Buckley Gray Yeoman.
This new office boasts impressive credentials,
targeting net zero carbon emissions in operations.
Furthermore, our cloud data services provider
matches 100% energy usage with renewable energy.
We measure the Group's carbon footprint throughthe software platform, Watershed. We also measure
our Scope 1, 2, and 3 emissions, which covers theentirety of our business operations, including ourstaff (e.g. commuting and business travel), ouroffices, our product (including cards, marketingcosts, and cloud services), as well as our partners
and suppliers. The table below lists Revolut Group's
greenhouse gas emissions and global energy use inaccordance with the UK's Streamlined Energy andCarbon Reporting (SECR) framework.

Methodology
Emissions were calculated following the GHG
Reporting Protocol (Corporate Standard). Energy
usage data was collected or estimated based onbuilding square-footage for all facilities, and was
combined with emissions factors from the US EPA,
Ecoinvent, TCR, CEDA and other data sources tocalculate GHG emissions. The emissions factors forelectricity are chosen based on geography to reflect
the emissions intensities of the facilities’ local grid.

2023

2022

UK andOffshore

Global (excluding UK and
UK and Offshore) Offshore

Global (excluding
UK and Offshore)

Energy consumption used to calculate emissions(Scope 1 and 2)

1,175,653 kWh

828,930 kWh

644,695 kWh

1,006,915 kWh

Emissions from sources which are owned orcontrolled by the company including combustion offuel for transport & operation of facilities (Scope 1,
market-based)

19.6 tCO2e

4.4 tCO2e11.9 tCO2e

11.8 tCO2e

Emissions from combustion of fuel for transport
purposes (Scope 1, market-based)

0 tCO2e

0 tCO2e

0 tCO2e

0 tCO2e

Emissions from business travel in rental cars or
0 tCO2eemployee-owned vehicles where company is
responsible for purchasing the fuel (Scope 3, marketbased)
Emissions from purchased electricity, heat, steam
110.9 tCO2e
and cooling (Scope 2, location-based)

0 tCO2e

0 tCO2e

0 tCO2e266.8 tCO2e

112 tCO2e387.3 tCO2e

Total gross tCO2e based on above fields

130.5 tCO2e271.2 tCO2e

123.8 tCO2e399.1 tCO2e

UK andOffshore

Global (including UK and
UK and Offshore) Offshore

Global (including
UK and Offshore)

0.07

0.22

0.57

Intensity ratio: tCO2e per £ million of revenue

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

0.13

49

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

50

Chief Risk and Compliance
Officer’s Review
The mission of the Risk and Compliance function in
Revolut remains unchanged: to develop and managea robust framework and provide the necessary
oversight to enable our global business to grow in abalanced and sustainable way, and as a naturalconsequence deliver good outcomes for customers
and stakeholders.

Pierre Decote

We continued to take our mission very seriously anddeliver on it in 2023. We managed our principal risks
within appetite, whilst facilitating Revolut’s journey
through a next phase of geographical expansion andproduct launches. We achieved this while navigating
an increasingly complex geopolitical, macroeconomic, and regulatory environment.

Chief Risk and Compliance Officer

A strong ‘Three lines of defence’ (3LoD) remains at the core of our model, and we bolstered it to better respond to
the needs of our fast growing organisation and promote ownership and empowerment. We grew our risk andcompliance function from 256 to 331 employees by the end of 2023, to ensure it remains commensurate with thesize and complexity of our organisation and the products and services we offer. We strengthened the first line risk
and compliance capability by deploying additional Business Risk Managers and Business Compliance Managers in
key commercial areas. We enhanced our Risk and Compliance Accreditations (RCA) framework, to empower thebusiness with greater autonomy and responsibility for risk management and compliance.
A strong and healthy risk culture is essential to our risk management model, and to ensure that all our colleagues
are responsible and take ownership for managing risks. We promote it by embedding mindsets and behaviours thatreflect Revolut’s values in the way we manage risk. We use a full suite of behavioural change tools - such as risk
training modules, easy-to-use risk resources, and systems and processes that reward and recognise desired
behaviours. Karma - our own proprietary scheme - remains our key tool to track, measure and incentivise
behaviours to drive good risk and compliance outcomes. In 2023, we further expanded its coverage, adding more
activities to the scheme to ensure it supports a growing and more complex organisation.
As Revolut continues to grow, we want to make sure that the risk tools and solutions powering our risk operations
can accommodate and enable our expansion. Throughout 2023, we continued to invest significant time and effort
in the development of our industry-leading risk infrastructure. We further developed our Risk Platform - anenvironment of interconnected risk assets that provides an end-to-end view on regulations, policies, risks andcontrols allowing for real-time monitoring of our risk profile. We have also rebuilt some of the core risk products on
the platform - such as Risk Incidents & Risk Indicators - enabling better user experience and timeliness ofmanaging risk events.
All these efforts enabled us to deliver strong risk and compliance outcomes in 2023 - we finished the year with ahealthy risk profile, noticing tangible improvements in all key areas of our risk environment. We enhanced our
processes and controls to comply with the new Consumer Duty regulation, ensure our products provide fair value
and we continue delivering good outcomes to our customers. Despite sharp growth in size and complexity wesupported the business in launching new products, entering new markets and delivering strong financial
performance. We remain aware of the challenges ahead and will continue to monitor both the external environmentand our risk profile through rigorous risk and compliance processes we have developed, and further improved in
2023.

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51

I am personally proud of the way that we manage risk and compliance at Revolut and how we continue to grow,develop and improve our approach year by year. I look forward to continued investment and focus on these key
areas of our business as we see Revolut embarking on the next stages of its growth journey.

Pierre Decote
Group Chief Risk & Compliance Officer
28 June 2024

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52

Risk Appetite
At Revolut, our Risk Appetite Statement (RAS) is theexpression of the level of risk that the company isprepared to accept in order to deliver on its visionand strategic goals. The RAS is reviewed andupdated annually and approved by Revolut’s Board
Risk and Compliance Committee. It defines theboundaries of our business operations and forms an
integral part of its risk management approach.
Revolut deploys its risk appetite through qualitative
statements. Qualitative statements are articulated
for each risk type in our risk taxonomy. These are set

and approved at least annually by the Board, taking
into account the risk and reward trade-off ofbusiness activities. To manage and monitor our risk
profile against our appetite, we use key control
activities and quantitative measurements in the formof risk indicators. During 2023, we have performed
comprehensive reviews to ensure we have a strong
set of quantitative metrics in place to monitor that
our exposure is in line with our risk appetite.

Our Approach to Enterprise
Risk Management
Revolut has a strong and mature Enterprise Risk
Management Framework (ERMF), which establishes
our comprehensive approach to identifying,measuring, monitoring, mitigating and reporting risksof all types, to ensure we operate consistently within
appetite. It documents the methods, tools andgovernance structures within our 3LoD operating
model. The ERMF clearly articulates roles andresponsibilities across the Group, while setting the
ground rules applied to measuring, managing,reporting and escalating risk matters.
This consistent approach provides management andthe Board with confidence that the entire Group isoperating within risk appetite while allowing
appropriate flexibility to meet the specific needs andregulations of each legal entity and region.
The ERMF document is aligned with Revolut’s
strategy and Risk Appetite Statement to ensure thatrisks are defined, that appetite limits are formally set
and agreed by the Board, and that there is a formal
structure in place to help ensure execution is
managed to align with the Board’s strategic
intentions. Effective risk management enables focus
on the priorities of the business and delivers a highquality assessment of risks in the decision-making
processes through open discussions and challenges
about risks and opportunities.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

Our ERMF clearly defines our risk taxonomy, which isconsistently used when identifying, assessing andmanaging risks. This ensures adequate risk coveragein terms of risk capture as well as reliable and usefulrisk aggregation and reporting and specific oversightand governance. Aggregation of risks by levels in therisk taxonomy allows for an analysis of any risk
concentrations to which Revolut may be exposed.
Over the course of 2023, we have completely
revamped our risk taxonomy to better align to theenvironment and the key sources of risk to which ourentities and Revolut as a group are exposed. While
we have maintained a two level risk taxonomy, weredesigned Level One (L1) which now consists ofseven key areas: Business Risk, Operational Risk,
Financial Risk, Regulatory Compliance Risk, Model
Risk, Financial Crime Risk and Conduct and Culture
Risk. Our new L1 taxonomy has a stronger alignment
to the way we operate in terms of risk oversight andgovernance. L2 has also been refreshed to cater for
specific sources of risk. We also maintain astandardised risk library, which ensures consistency
and completeness in the detailed risks within each of
L2 categories.

53

L1 Taxonomy Risk

Description

Strategic (business)

Business risk refers to the risks that threaten to disrupt the assumptions underpinning Revolut'sbusiness model and strategy thereby materially affecting the achievement of our strategic objectives.

Operational risk

These are the risks arising from failures in internal processes, people or systems, or from external
events that impact the business and the operational risk taxonomies cover a wide range of areas
including data risk, InfoSec risk, legal risk, third party risk, change management risk, technology
availability and continuity risk, people risk, physical & assets security and safety risk, and execution
risk.

Financial risk

These are the risks relating to our financial assets and liabilities, Financial risk encompasses a range ofindividual risk types to which Revolut is exposed: capital risk, funding and liquidity risk, market risk, andcredit risk (retail, business, and wholesale). It also includes a driver of risk, climate risk, which relates tofinancial risks impacted by climate change itself or adaptation to climate change.

Regulatory compliance These are the risks pertaining to Revolut not meeting its obligations under the laws, regulations andrisk
industry best practices in the jurisdictions in which it operates.
Model risk

Model Risk refers to the potential for automated calculations used to drive business decisions, be theseunderstood through traditional models, Artificial Intelligence (AI) / Machine Learning (ML) models, EUCbased calculations or trading algorithms, to be inaccurate, incomplete or otherwise misleading,resulting in the ineffective decision making.

Financial crime risk

Financial crime risk is inherent in a financial business such as Revolut. Financial crime risk covers a wide
variety of risks such as Money Laundering (ML) and Terrorist Financing (TF) risks, sanctions risk,internal & external fraud risk. Revolut is therefore inherently exposed to the potential risk of notcomplying with applicable FinCrime compliance regulations.

Conduct and culturerisk

The culture risk refers to that the company culture or incentive structures may encourage excessive or
imprudent risk taking and poor employee conduct and behaviours. As a result of that, it gives rise to
conduct risk which is any act or omission by Revolut or anyone acting on its behalf that leads to pooroutcomes or detriment to customers or other stakeholders, or has an adverse effect on market stability
or effective competition.

We continued to build on the key framework capabilities we had developed in previous year such as thestandardised risk library, the enhanced management of top risks and emerging risk and the further leverage oforganisational management tools (Risk and Compliance Accreditation and Watchlist). During 2023, we further
enhanced our ERMF to reflect the risk management implications of growth and increased complexity in our
corporate structure, geographical reach and product breadth. We designed and incorporated additional tools andapproaches to strengthen our grip on our risk profile. Examples of this include:•

The continued enhancement of our process for the identification, monitoring, mitigation and remediationof our top risks with enhanced reporting and assessment of risk residual profile and remediation status.

•

The implementation of our Entity Risk Maturity Assessment process - a means by which the Group willassess and support group entities across the globe to evaluate and improve their risk management
capabilities whilst providing assurance of sound risk management practices group-wide.

•

The continued development of data-drive and real-time risk analytics and management tools including theimplementation of departmental risk dashboards to enable effective discussions between 1LoD and 2LoD
on key risk matters.

•

The further improvement of our in-house developed policy and regulation management infrastructure. Our
industry-defining capability allows for capturing all relevant regulations, legislation and industrial guidance,
identifying obligations applicable to Revolut and connecting such obligations to our internal policies andprocedures, which are then further mapped to actual controls we operate. The end-to-end connection andmapping enables us to ensure and monitor Revolut’s compliance with all applicable regulations andlegislations and identify areas where new controls are needed.

•

The development of the new Escalation Framework which is a holistic framework to identify areas of risk
management concerns through the use of over 80 data points across five different dimensions,accompanied with a scoring framework and mechanism which can enable consistent and clear
identification of areas of concerns, which are potential triggers for specific escalation.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

54

•The further evolution of Risk and compliance accreditation which is a mechanism at Revolut which could
give accredited TechCo departments the responsibility and tools for managing its risk and complianceprofile more autonomously. During 2023, we expanded the benefits applicable to accredited departments
and established roadmaps for non-accredited departments to drive targeted improvement plans.

Three Lines of Defence Model
Revolut deploys a Three Lines of Defence (3LoD) operating model for risk management. The 3LoD model enhances
the understanding of risk management and control by clarifying the different roles and duties expected. The 3LoD
model operates across the different layers of the corporate structure.

1LoD

2LoD

3LoD

This describes all the risk-taking
functions of Revolut. Under the 1LoD,
operational
managementhas
ownership,
responsibility
andaccountability for directly assessing,
controllingandmitigating
risks.
Revolut’s risk platform ensures clear
ownership of risk and controls areallocated to the right 1LoD people
which include Business Risk Managers
and Business Compliance Managers
situated within departments.

This describes the risk monitoring andoversight functions of Revolut, definedas the Risk Management function, theRegulatory Compliance function andtheFinancial
Crime
Compliancefunction. The 2LoD is governed by the
Board Risk and Compliance Committee(BRCC). The 2LoD defines andmaintainstheriskmanagement
framework and underlying policies andprocesses.
The
2LoD
providesindependent
reportingandManagement Information (MI) to
management and the Board via risk
governance structures. The 2LoD
provides training and guidance to 1LoD
to help risk owners to identify, manage
and monitor risks, and to review andupdatetheriskregisterwithappropriate controls and management
actions.

This refers to the Internal Audit
function which is governed by the
Board Audit Committee (BAC). The
BAC is composed of Independent NonExecutive Directors and ensures that
the Internal Audit function is operating
effectively in providing independentand objective assurance over risk
management, control and governanceprocesses. Internal audit is tasked withperforming in-depth reviews of theeffectiveness of the controls over
Revolut’s key risks.

Throughout 2023, we continued to uphold our Three Lines of Defence model at Revolut and increased our Risk andCompliance resources from 256 in 2022 to 331 by end of 2023 to ensure we are properly resourced to support thebusiness growth and new initiative launches.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

55

Risk and Compliance Culture
At Revolut, we consider Risk and Compliance Culture
a foundational part of our risk management
environment. We define it as the mindset andbehaviours of our employees towards risk, that arerooted in our company values and have a positive
impact on risk and compliance management within
Revolut. We have developed and cultivated a strongrisk management culture by driving a set of
initiatives that motivate employees and enable themto make the right risk decisions, while making
navigation of the risk environment in Revolut simple
and user-oriented at the same time. We support all
employees in all phases of the risk management
cycle - from mitigation activities, through proactively
managing risk to mobilising the right teams andresources, in case escalation is required.

•Obtaining a membership with Protect, theUK’s Whistleblowing Charity, which provides
employees globally with a free, confidential
advice line to help colleagues who may bewonderingwhethertoraiseaWhistleblowing
concernandwhatprotections are available.

We are confident that these efforts have and willcontinue to further strengthen our risk andcompliance culture, while providing additional insightand feedback on our risk management processes asa whole.

We undertake multiple activities to make sure our
employees understand our risk culture and their roles
in managing and strengthening our risk environment.
These activities include both knowledge and skillbuilding, but also embedding feedback loops in our
processes, so that employees are aware of how theirindividual actions are linked to risk consequences both positive and negative. In 2023 we had particularfocus on following drivers of risk culture at Revolut:•

Enhancement of our training and awarenessframework, ensuring all training modules are
updatedandinformedbyspecificrequirements,
basedonregulatory
obligations and our data environment•

Continuous improvement of all risk assets(e.g. risks, controls, indicators, etc.) anddevelopment of a unified risk platform,
enabling asset interlinkage and automation•

Further scaling of our industry-defining‘Karma’, a points-based system evaluating
engagement with Risk and Compliance
processes,•

Strengthening our growing network of our
first-line Business Risk Managers andBusiness Compliance Managers situated in
our key product and service teams, who act
as a risk culture champions, role-modelling
desired risk behaviours

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

56

Governance and Policies
Governance
Revolut defines governance as the combination ofprocesses and structures implemented by the Boardand management to inform, direct, manage andmonitor Revolut’s activities to achieve its objectives
for the benefit of its stakeholders. Oversight of risk
and strategic operations is conducted through thecommittee structure outlined in the Directors’ reporton page 87.
Policies

policies and procedures that act as directive controls
for the operation of the business. The framework
establishes a consistent approach to the creationand ongoing management of Revolut’s policies,
frameworks and procedures across the Group and its
subsidiaries.
Revolut operates a policy portal for managing its
entire policy and procedure inventory which is fully
integrated with our risk and control register andallows for mapping of relevant controls to relevant
policies to monitor in real time the effectiveness anddegree of compliance of our policy framework.

Our policy framework ensures that each risk acrossthe risk taxonomy is addressed through appropriate

Risk and Control Assessment
and Monitoring
Risk assessment provides management with a viewof events that could impact the achievement of its
objectives. It is integrated into management
processes and conducted using a top-down
approach (see principal risks and uncertainties,
below) that is complemented by a bottom-up
assessment process. Our risk taxonomy ensuresadequate coverage and enables risk data
aggregation at multiple levels. This assessment
process combines probability of occurrence (fromalmost certain to unlikely) with impact, using aframework that assesses impact from financial,customer, regulatory, employee, and media
perspectives.
For our product and services, embedded Business
Risk Managers conduct first-line risk and control
assessments with oversight from second-line risk
management. Within regulated entities, oversight isprovided by the entity’s CRO (or equivalent) and risk
team. These assessments are dynamic so that ourview of risks and controls keeps pace with changes
to our organisation, product offering and the risks weface. While assessment of risks and controls is firstand foremost the responsibility of our first-line
teams, the outputs of those are subject to oversightby Second Line Risk & Compliance. We gain
additional assurance over our risk and control
environment by conducting dedicated Compliance
Assurance reviews and through our Third LineInternal Audit reviews.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

57

External Environment Scanning,
Scenario Analysis, andStress TestingExternal environment scanning is the practice ofmonitoring the business environment, and tracking
the changes in the environment that could have an
impact on individual businesses. Understanding
change in the business and regulatory environmentis a key element of proactive risk management,
ensuring Revolut is adequately prepared for futurechallenges. We perform external scanning, mainly
resorting to two main processes: emerging risk
identification and regulatory horizon scanning.
Emerging risks are new, as yet unidentified anddifficult to quantify risks that may have a significant
impact on Revolut’s ability to deliver its strategy oron its key risk exposures. We have strengthened andfurther structured our approach to their identification
and assessment. Horizon scanning enables us toreview new and changing regulations, legislations
and industry publications to assess their applicability
and impact to Revolut.
Scenario analysis and stress testing is used tounderstand our exposure to specific events andRevolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

circumstances. It involves the quantification andexplanation of the risks contained within a scenario,
allowing us to assess possible mitigating actions.
Revolut conducts stress tests, as part of Board
approved risk assessments, such as the ICAAP and
ILAAP, but also on an ad hoc basis; such as analysing
high impact / low probability ('black swan') events
that could derail our strategy.
For example, within our ICAAP, we explore scenarios
ranging from, but not limited to:• global macroeconomic recessions, that
include
falls
in
real
GDP,
higherunemployment and interest rate shocks (upand down);• regional economic shocks that are specificto our core markets;• sector events that test weaknesses in thefinancial system and fintech industry; and,• idiosyncratic scenarios that test specificweaknesses in our business model including
operational risk events.

58

Principal Risks and Uncertainties
The table below enumerates our main risks, aligned to the risk taxonomy, with commentary on how these risks aremanaged and a forward-looking view on how they may evolve.

Principal Risk

Mitigants and Controls

OutlookStrategic Risk
Strategic risks are those risks thatthreaten to disrupt the assumptions
underpinning Revolut's business model
andstrategy,
therebymateriallyaffecting the achievement of ourstrategic
objectives.
Revolut
approaches strategic risk managementfrom two perspectives: Strategicplanning and Strategic execution.
The strategic risks Revolut is most
focused on include:•••

External factors, such as theinability to identify, assess
and manage macroeconomic,
regulatory,
political
andsocietal factors that mayhinder the execution of ourstrategy. This includes ourability to identify and plan for
high-impact events.
The risk that our company
culture is unsupportive of ourstrategic goals.
The reputation risk from theperspective of our various
stakeholder groups, which
may arise often as a secondorder
impactofrisksemanating from our chosen
strategy.

•

Sustainabilityofgrowthinitiatives entailing the risk ofshort-term gains coming at
the expense of long-term
detriment.

•

Operationalisation risk, which
may result in slowing down
the delivery of our productofferings and entity structure;and the risk arising from theinability to adapt and iterate
our product offering to fit
several target markets.

Revolut’s strategy is defined by the
Board on a yearly basis and overseenby the Executive Committee. The
strategyisarticulated
throughcompany goals and measured by KPIs
(Key Performance Indicators) andcompany milestones on a quarterly
basis. Threats to our strategy aremonitored through KRIs (Key Risk
Indicators) and other automatedmonitoring tools with formal processes
to investigate and remediate potential
or actual breaches to appetite.
We continue to strengthen our longterm strategy process by involving all
departments into our strategy setting
so to make sure that long term
strategic objectives are fully consistent
with department goals.
As part of our strategy setting process,
Revolut’s top strategic risks are definedwith the Group CEO and Executive
team and regularly analysed andreviewed. A report which details the
top Strategic Risks, their impact oncompany goals, their mitigants andfuture developments is presented on aquarterly basis to the Group Executive
Risk Committee and Board Risk &Compliance Committee.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

Revolut closely monitors changes tothe macroeconomic, political, andregulatory landscapes to ensure theimpacton
ouroperations
areunderstood and contained. Multiple
work streams are underway andthorough stress testing and risk
analysis has been conducted factoringin a number of external scenarios and/or events that have or were expected
to materialise during the financial year:•

Continuous assessment of
the implications of volatility inthe current macroeconomic
environment.

•

Close
interaction
withregulators
acrossalljurisdictions.
Ourhorizonscanning process ensures
promptidentificationofregulatory trends which may
affect our business.

•

Enhancedmonitoring
capabilities and assessmentof our reputational risk, by
expanding the use of internaland external data factoring in
our growth.

In addition, we continue to strengthen
our processes and governance, aroundproduct launch and geographicalexpansion, that serve as a guard
against uncontrolled growth andimpacts to operations.

59Principal Risk

Mitigants and Controls

OutlookFinancial: Capital Risk
Capital risk is the risk that Revolut does
not hold adequate capital to support its
business activities based on its
regulatory requirements, risk profile orleverage.

Capital risk is mitigated using KRIs thattrigger immediate intervention if theGroup’s capital position deteriorates.
The Group holds capital buffers,
ensuring that it has sufficient capital
based on its risk profile to mitigate theimpact of stress events. Capitalrequirements for the Group are reassessed on at least an annual basis
through the Internal Capital Adequacy
Assessment Process (ICAAP).

Revolut has, and expects to have in the
future, sufficient capital to support its
risk profile. Based on our ICAAP stresstesting, the Group has sufficient capital
to withstand a range of severe, butplausible stress events.

Financial: Liquidity Risk
Liquidity risk is the risk that Revolut
cannot meet its financial obligations
when they fall due. It includes Funding
Risk which is the risk that Revolut does
not have sufficient stable sources offunding to meet its financial obligations
when they fall due or can do so only at
excessive cost.

Revolut maintains a liquidity buffer of
unencumbered,high-quality
cash
instruments and securities that arereadily convertible to cash to ensurethat it can meet all its financial
obligations
inbusiness-as-usual
circumstances and in stress conditions.
Liquidity requirements for the Groupare re-assessed on an annual basis
through the Internal Liquidity Adequacy
Assessment Process (ILAAP).

Revolut is expected to maintainsufficient
excessunencumberedliquidity to support business-as-usualand stressed contingent financial
obligations. Our liquidity position is
expected to evolve as clients migratefrom payment entities to banks.

Financial: Market Risk
Market risk is the risk that Revolut’s
earnings, capital or ability to meetbusiness objectives could be adversely
affected by changes in the level orvolatility of market variables, which
includes changes in interest rates,
credit spreads, commodity prices,
equity prices, cryptocurrency prices
and foreign exchange rates.

Revolut monitors market risk exposuresusing KRIs for the key risk drivers,
setting appropriate risk limits and using
hedgingtransactions
where
appropriate. We assess market risk
under BAU and stressed conditions.
Our KRIs include, but are not limited to,metrics monitoring foreign exchange,
crypto, and commodities rates and fairvalue.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

Foreign exchange, commodity andcryptocurrency exposure are expected
to remain at relatively low levels incompliance with our standard hedging
policy.
Revolut
maintainssomestructural foreign exchange positions,which are managed and monitored
using the existing market risk metrics.

60

Principal Risk

Mitigants and Controls

OutlookFinancial: Interest Rate Risk in the Banking Book
Interest Rate Risk in the Banking Book
(IRRBB) refers to the current orprospective risk to Revolut’s capitaland earnings arising from adverse
movements in interest rates that affectour banking book positions. Revolut is
exposed to IRRBB to the extent that
there is a structural repricing mismatch
between assets and liabilities.

Revolut monitors its IRRBB exposure on
an ongoing basis by reviewing metrics
for sensitivity of net interest income
and economic value of equity by
applying interest rate shocks, including
those prescribed by the regulator.

Revolut hedges the Economic Value of
Equity(EvE)
sensitivity,
whilstminimising Net Interest Income (NII)
sensitivity. Our balance sheet is
expected to evolve as clients migratefrom payment entities to banks, thecredit offering is increased andinvestments
intreasury
assetscontinue to ramp up. These changes
will influence the interest rate risk towhich Revolut is exposed.

Financial: Retail and Business Credit Risk
Revolut's retail and business credit
portfolios consist of lending toindividuals,
primarily
unsecuredpersonal loans and credit cards, andcreditexposuretoindividual
businesses due to Revolut's merchantacquiring and FX Forwards services,
both in a range of countries.

Retail and business credit products are
subject to appropriate underwriting
procedures and monitoring, andgoverned by relevant Group-level andentity-level risk committees. All retailcredit programs are assessed at least
annually, while retail credit exposureand appetite is continuously monitored.

Revolut
continues
to
work
on
broadening the retail credit productoffering, scaling these products inexisting countries and rolling them out
to additional countries in a controlledmanner, which will result in growth inretail credit exposure during thecoming year.

Financial: Wholesale Credit Risk
Revolut is exposed to wholesale,investment, and business credit risk.
The majority of its wholesale credit riskarises through the need to facilitatebusiness operations, such as posting
corporate
collateral
withmarketcounterparties
orsafeguarding
placement of corporate funds andsafeguarded client funds with financial
institutions, plus exposure to highquality
sovereignandcorporate
counterparties through treasury assets.
This risk also includes investment
exposure arising from the purchase of
securities associated with the roll outof our investment operations.

All wholesale counterparties giving rise
to operational credit risk are assessedat least annually while investment
exposure is monitored on an ongoingbasis. All credit risk exposure is
assignedacreditrisk
limit
commensurate with their risk profile,
subject
toapprovedmateriality
thresholds. Exposure to individual
financial institutions is gradually being
diversified through the growth oftreasury assets

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

Revolut’s
exposuretofinancial
institutions is expected to evolve overtime with plans to grow a high-quality
liquid asset portfolio to supportcompliance with regulatory large
exposure requirements.

61

Principal Risk

Mitigants and Controls

OutlookConduct: Conduct and Culture Risk
Revolut has Conduct Risks associatedwith customer outcomes, market
stability and effective competition; andCulture Risks associated with businesspractices and incentives. Revolut iscommitted to putting consumers at theheart of the business and delivering tothem good outcomes. This applies
across all stages of the consumer
journey,
including
products
andservices, communications and postsale support.

Revolut deeply values the trust that
customers place in us, and ourcustomers are at the heart of how wethink about all our products andservices. Revolut mitigates Conduct
and Culture Risk through its Enterprise
Risk Management Framework which
includes key controls, processes andgovernance oversight. Revolut strives
to design products and services thatmeet the needs of consumers within
the respective target markets, deliver
them with value; provide consumers
with clear, understandable informationthat supports them to make informed
decisions; and provide accessible inapp
supportthat
ensuresourcustomers are able to realise the full
benefits of products and services.
There are both preventative anddetective controls to proactively
identify individuals with potential andactual characteristics of vulnerability,
to mitigate the risk that vulnerable
customers
donotsufferpoor
outcomes, or worse outcomes than any
other group in the target market. Clear
roles, responsibilities and oversightarrangementsaredefinedboth
operationally and organisationally, as
well as mechanisms to incentivise goodbusiness practices such as ‘Karma’.
Finally,
governanceis
exercisedthrough the Compliance, Operational &Conduct Risk Committee, with clear
escalation lines to the Group Executive
Risk Committee & Board Risk &Compliance Committee.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

Revolut has a low tolerance for risks
that may harm consumers. Our primary
goal is to protect consumers, providingthem with good outcomes, whilstenhancing trust in our products andservices. Revolut continues to observe
an increase in the inherent risks
associated with Conduct and Culture
Risk, directly aligned to the expansionof products, services, jurisdictions andvolume of customers. This continues tobe mitigated through the Enterprise
Risk Management Framework.

62

Principal Risk

Mitigants and Controls

OutlookCompliance: Regulatory Compliance Risk
Revolut is committed to complying withthe relevant regulatory requirements inthe jurisdictions in which it operates
and to provide accurate, reliable andtimely reports to external regulators,
authorities and stakeholders.

Revolut mitigates Regulatory Risk
through
itsEnterprise
Risk
Management Framework. Regulatory
Risk management is enhanced bycomprehensive
policies
andprocedures
underpinnedbyanextensive
mandatory
training
programme. Governance is exercisedthrough the Compliance, Operational &Conduct Risk Committee, with clear
escalation lines to the Group Executive
Risk Committee and Board Risk &Compliance
Committee.
Revolut’s
embedded Global Horizon Scanning
process detects early signs ofimportant regulatory, legislative andpolicy developments and/or changes,
consequently adapting its controls
commensurate to the regulatory risk
arising. Revolut actively contributesand engages with consultation papers
and thematic reviews issued byregulators and industry participants,
providing its unique perspective toshape and influence the forward
regulatory landscape.

Revolut has a low tolerance for risks
that may compromise its regulatory
obligations, and seeks
to operate
within all relevant laws and regulations,establishing and maintaining strong
working relationships with regulators.
Regulatory requirements may becomplexandrequirecarefulinterpretation, including considerationof their underlying spirit and intent. We
are committed to complying withapplicable laws, rules and regulations,monitoring for changes to theregulatory landscape and maintaining
robust systems and controls as aresult.

Principal Risk

Mitigants and Controls

OutlookFinancial Crime: Financial Crime Risk
Financial Crime Risk is the risk of failingto effectively mitigate criminal or illegal
activity through Revolut’s products andservices, third parties and employees.
This includes money laundering,violations of sanctions , and terrorist
and proliferation financing. Revolut may
be adversely impacted if it fails toappropriately identify and mitigate therisk that employees or third parties
facilitate, or that Revout’s products andservices are used to facilitate Financial
Crime. Non-compliance may lead toenforcement action including fines,
publiccensure,suspensions,
restrictions, conditions, limitations and/or disciplinary prohibitions, which could
result in a material financial andreputational impact to the business.

Revolut takes its responsibility toprevent and detect Financial Crime
seriously. Revolut mitigates these risks
by ensuring it has robust governance,
effective risk management procedures
and a strong control framework to
manage Financial Crime Risk. We
continue to improve the effectivenessof our Financial Crime systems andcontrols, including real-time monitoringof transactions, daily screening of all
customers for sanctions and adverse
media, and enhance staff mandatory
training on Financial Crime Risk.
Revolut continues to invest significant
attention and resources to strengthen
the overall Financial Crime framework,
systems and controls.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

Revolut has a low appetite for ML/TF
risk and no appetite for Sanctions risk.
As Revolut continues to expand intonewjurisdictions,products
andservices, this increases the exposure toexisting risks and introduces new risks
that require continued focus to manage
Financial Crime Risks effectively andefficiently. Given the heightenedsanctionsrisks
associatedwithongoing geopolitical conflict, Revolut
will continue to focus on enhancing
screening, transaction monitoring andenhanced due diligence control toeffectively comply with evolving
sanctions regimes. Revolut will also
continue to evaluate, monitor andstrengthen the effectiveness of its
Financial Crime framework and iscommitted to maintaining a risk andcontrol environment that enables it torespond promptly and effectively toemerging Financial Crime threats.

63

Principal Risk

Mitigants and Controls

OutlookFinancial Crime: External Fraud Risk
Revolut defines external Fraud Risk as
losses due to acts of a type intended todefraud, or misappropriate property or
circumvent the law, by a third party.
Significant External Fraud Risks for
Revolut include Acquiring Fraud,
Issuing Fraud (Card / Payment /Lending), Account Takeover Fraud andApplication Fraud (Identity Fraud).
Revolut has a low appetite for External
Fraud Risk. In particular, Revolut
focuses on managing the risk that
customers are victims of AccountTakeover Fraud, Authorised Push
Payments Fraud, and lost or stolen
Card Fraud. Revolut is committed tocomply with the relevant regulatory
requirements and recommendations;furthermore, failing to be compliant
may lead to enforcement action
includingfines,
publiccensure,suspensions, restrictions, conditions,limitations and disciplinary prohibitions.

Revolut aims to minimise External
Fraud Risk by maintaining robust, riskbased systems and controls which aredesigned to meet prevailing legislativeand regulatory requirements and to
deter, prevent, identify, manage andreport occurrences of External Fraud.
Where fraud does occur, Revolut has apolicy of investigating all events inorder to learn and take the necessary
steps to further strengthen its systems
and controls, therefore protecting
Revolut and its customers from future
fraud risk(s) and to protect Revolut’s
reputation.
Revolut manages external fraud risk in
line
with
the
enterpriseriskmanagement framework, maintaining arisk register of external fraud risks
covering the major fraud typologies
and how these apply across Revolut’sbusiness
andproduct
offerings.
Controls are mapped to risks and aretested on a periodic basis for designand operating effectiveness. Revolut
also maintains a suite of KRIs and BCIs
to monitor for changes in fraud risk
exposure. In addition, the group is
mitigating the specific top risks throughmandatory training for all employees
and specific KRIs to identify trends infraud events.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

Revolut continues to evaluate, monitor
and strengthen the effectiveness of its
External Fraud Framework and iscommitted to maintaining a risk andcontrol environment that enables it torespond promptly and effectively to
any emerging fraud threats andadvanced technology. The increasinguse of AI by criminals, in particulardeepfake technology, continues toposeachallenge.
Revolutiscombatting this by enhancing its own
Machine Learning (ML) models andalso engaging its vendors to improvedetection.
Thechanging
liability
position for fraud in the UK in 2024
places additional emphasis on the needforcontinuous
monitoring
and
improvement of both acquiring andissuing fraud controls. Revolut isincreasing its engagement with peer
financial institutions and industry
bodies, which will enable it to respond
more promptly to emerging risks andwork collaboratively to proactively
protect its customers. Revolut isdeveloping a framework to enhance
the use of external intelligence
resources to enable a more effective
and efficient response to emerging
fraud risks.
Revolut's ongoing expansion into newmarkets, coupled with the introductionof new and innovative products andpayment channels, will continue topose a dynamic fraud risk landscape.
This challenge will need to beaddressed through strong governance,
a foundation of robust fraud controls,
the ability to pivot quickly to address
new threats.

64

Principal Risk

Mitigants and Controls

Outlook

Operational: Third Party Risk
Revolut relies on third parties andoutsourcing service providers for thedelivery of its business operations
across a number of channels, forexample,payment
processing,customer support, commodity, crypto
and stock exchange services, KnowYour Customer (KYC) & Anti-Money
Laundering (AML) as well as otherbusiness services. A significant portionof the services provided to Revolut
customers depend on third-party
arrangements.
Consequently,
thispresents operational, compliance andreputational risk, for which we have adefined risk appetite and monitoringprocedures.

Revolut mitigates this risk through its
Third Party and Outsourcing Risk
Management framework. This includes
third party inherent risk assessment,
third party due diligence, contracting
standards, contingency arrangements
and ongoing monitoring, such as risk
and performance. We work closely withthird parties to ensure we are resilientand can continue to deliver ourservices with minimal disruption. We
continue to reduce our dependencies
on third parties via diversification andbuilding products and processes inhouse where practical. Concentration
risk analysis is done regularly acrossthirdpartiesandoutsourcing
arrangements.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

We expect our network of third parties
to continue to grow as a result of ourbusiness growth so we continue toclosely monitor this risk. Material third
party relationships are subject togovernance; and regular updates on
third party concentrations continue tobe conducted and reported to
management.
Weareactively
managing significant concentration risk
with third parties through diversifying
our suppliers of third party services
and by building solutions to a numberof key processes in-house, which gives
us better control over those processes
and ability to manage their resilience
directly.

65

Principal Risk

Mitigants and Controls

Outlook

Operational: Cyber and Data Security Risk
As a global financial provider, cybersecurity threats are a continual sourceof risk to Revolut systems and theconfidentiality, integrity and availabilityof data held within them.
Revolut handles significant amounts ofpersonal
data
providedbyitscustomers, as well as employee dataand confidential corporate information.
Revolut therefore must comply withstrict data protection and privacy laws
andregulations
inallglobaljurisdictions in which it operates, while
protecting its own reputation andcorporate position.

Alongside the advanced security
features it provides to customers,
Revolut
has
implemented,
andcontinues to invest in technical andorganisational measures to reduce
Cyber and Data Security Risks andensure robust cyber resilience toprevent, detect, respond to, andrecover from, cyber threats.
These measures include, but are notlimited to, application security testing,vulnerability management, a training
and awareness programme, logicalaccess controls, endpoint threatprotection, cyber threat intelligence,
security detection and response
capabilities, third party and supply
chain
risk
management,acomprehensive penetration testing
programme, as well as regular audits,
including SOC2 Type 2, to provide
assuranceontheoperatingeffectiveness of these measures.

The cyber risks that relate to a cloudbased, fully digital company, operating
at scale, along with the continuing
opportunism
andmotivationofcriminals, continue to be closely
monitored with additional controls
implemented for customer, staff, anddata protection.
Revolut
operatesacontinuous
improvement approach to security
controls, adapting to the threat
landscape as it evolves, and as a resultof on-going testing and audit activities.
Revolut will continue to mature its
governance in this area and look tofurther expand the coverage and scopeof its existing audit programme toprovide additional assurance across awider set of controls.

Revolut also implements industryleading security features into its
customer offerings, including locationbased card security features and 3D
Securepush
notifications,andcontextual multi-factor authentication,
to ensure that customers can trust theservice provided. Revolut continues toinvest in its digital platforms andsecurity posture, and builds resilientandsecuretechnologies
andprocesses to minimise the risk of data
security breaches.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

66

Principal Risk

Mitigants and Controls

Outlook

Operational: Availability and Continuity Risk
Operational Resilience is an outcome
which Revolut strives to achieve byeffectively managing its Availability andContinuity Risk and responding tooperational disruptions in a timely
manner. Operational disruptions canhave many causes including, forexample, technology failures or when
making changes to systems. Some
disruptions may also be caused bymatters outside of a firm’s control, suchasacyber-attackorwider
telecommunications or power failure.
While the risk of operational disruptions
cannot be eliminated,maintaining
Operational Resilience continues to bea priority for Revolut, to protect its
growing customer base across anincreasingly diverse set of products.

Revolut’s
Operational
Resilience
Framework sets out the policy,
procedures and governance structures
to enable us to monitor and manage
the resiliency of our most Important
Business Services for customers. The
Operational Resilience Framework isformed of nine capability pillars, which
cover a variety of potential sources ofoperational disruption and support us
in defining ‘resilience practices’ undereach pillar. Revolut maintains a suite ofBusiness Continuity Plans and Disaster
RecoveryPlans,
which
containrecovery measures for businessprocesses and technology to enable
services to be resumed within a timely
manner. These plans are tested
regularly to ensure they remain fit for
purpose. A dedicated Operational
Resilience capability is in place tomaintain oversight of the frameworkacross the Group and local entities.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

Our Operational Resilience Framework
requires ongoing assessment andidentification of our most Important
Business Services for customers, andset tolerance limits for their disruption
in a major incident. We will continuallywork to enhance the resiliency of theseimportant services, by investing in
additional technology, people and third
party resources. The aim of this is tolimit the likelihood of a major disruption
occurring, and also to limit the harm tocustomers and Revolut should adisruption impact the Group. We
operate a robust testing regime tomonitor the effectiveness of ourresiliency measures across the Group,
including Stress Testing of all
Important Business Services.

67

Emerging Risks
Whilst we monitor the environment for key risks emerging, we would like to call out the following risks in this year’s
report. These are risks which we are paying particular attention to and are developing concrete plans to integrate
into our daily risk and control registers (or amend existing entries where relevant).

Risk

Perspectives

Climate Risk

Similar to previous years, Revolut’s exposure to the financial risks arising from climate change remains
immaterial. While we remain vigilant and committed to monitoring climate risks, our software-based businessminimises our exposure to climate-related scenarios as our operations rely less on physical infrastructure andmore on digital platforms. Our corporate physical footprint (e.g. office space) continues to be limited and we do
not provide direct funding that generates financed emissions and are not collateralised by physical assets
exposed to climate change.
Given the longer-term nature of the risk and Revolut’s desire to set and achieve appropriate climate goals, wecurrently manage climate risk as an emerging risk with the expectation that it will become one of our key
strategic risks as our exposure begins to grow.
Financial risks from climate change is overseen by the Group's BRCC. KRIs, that measure lending to orcollateralised with assets exposed to climate change, are used as early warning indicators to notify us if our
exposure is becoming material.
As we grow our lending book, in particular potentially offering residential mortgages, the materiality of ourclimate risk exposure may change. Alongside the governance framework described above, our financial
planning process, which provides forecasts for the next five years, will help us understand when our climate risk
exposure may become material and when we would further improve our risk management capabilities.
Ultimately if our lending does expose us to climate risk, we may suffer enhanced credit losses due to climate
events; we will therefore need a more enhanced risk management capabilities to price this risk and holdsufficient capital for any material exposure. A key component of our climate risk assessment capabilities, will sit
within our ICAAP, which may set capital requirements for the risk using quantitative methodologies and models,and perform stress testing, where appropriate.
Considering that the risk is insignificant, we limit further disclosures.

Evolving
Regulatory
Environment

As a regulated business, Revolut keeps abreast of the emerging regulatory and legislative changes which could
impact the way we operate and therefore our ability to comply with applicable regulations and legislations. To
achieve this, Revolut, partnering with a number of third parties, has developed its own Horizon Scanning
process to capture and assess the potential impact of upcoming regulatory change while jointly maintaining anactive and open dialogue with all regulators and government bodies in our operating territories.
In particular, we are closely monitoring the changes in regulatory landscape and industry developments relating
to Cryptoasset products following the continued evolution of regulatory enforcement in this arena. In addition,
we continue to closely monitor the potential impact of the UK’s Payment Systems Regulator developments on
frauds refund including the mandatory reimbursement model.
As the regulatory landscape continues to evolve and remains dynamic, Revolut continues to record and assess
developments such as these as our top emerging risks.

Evolving
Technologies

Revolut believes that evolving technologies create significant opportunity for innovation of our Products andServices, but also recognises challenges associated with their use. Regulations around the use of newtechnologies (e.g. Artificial Intelligence) are also evolving and Revolut applies significant governance overpotential use cases to ensure that key risks (e.g. Model, Data Privacy, Legal, Compliance) are identified andmanaged.
Emerging technologies also feature in rapidly evolving external threats, for example through External Fraud or
Cyber Attack. Our controls therefore require continuous enhancement to ensure they remain effective. As
referenced in the principle risks section, a regular and ongoing programme of penetration testing is in place toidentify weak points against changing attack vectors. Fraud detection models continue to be enhanced,
leveraging new technologies (e.g. Large Language Models) to become increasingly effective.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

68

Non-Financial and Sustainability Information Statement
The table below cross references Non-Financial and Sustainability Information and Key Performance Indicators
provided in this report. This section is prepared to comply with Sections 414CA and 414CB of the Companies Act
2006 and the climate-related financial disclosure regulations.
Reporting
Requirements

Policies and Standards

Environmental Matters • Environmental, Social and Governance Policy

Employees

Key Performance Indicators (KPIs)

References• Total gross tCO2e• Environmental, Social andGovernance (ESG), page 46• Responsible Lending Policy• Intensity ratios• Global Whistleblowing Policy• Female representation inleadership• Health and Safety Policy• Equal Opportunities Policy• Anti Harassment and Bullying Policy• Conduct Risk Management Policy• Our People, page 40• Female representation inpromotions• eNPS Score• Staff Remuneration and Governance Policy• Performance Management Policy• Global Grievance Policy• Group Fitness and Propriety Policy• Corporate Criminal Offence Policy• Communications Policy
Human Rights• Environmental, Social andGovernance (ESG), page 46• Modern Slavery Policy• Third Party Risk Management Policy• Data Governance Policy• Our Partners and Suppliers,
page 39• Information Classification and Handling Policy• Global Privacy Notice
Social Matters• Employee Handbook• Code of Conduct• Active participation in Revolut’s
Guilds• Environmental, Social and Governance Policy• Environmental, Social andGovernance (ESG), page 46• Our People, page 40• Vulnerable Customers Policy• Customer Outcomes Policy• Consumer Duty Fair Value Policy
Anti-corruption andAnti-bribery• Our Partners and Suppliers,
page 39• Anti-bribery and Corruption Policy• Anti-money Laundering Policy• Conflict of Interest Policy• Global Sanctions Policy• Market Abuse Policy• Anti-fraud Policy

Description of
Principal Risks andImpact of Business
Activity• Headcount in risk and compliancefunction• Chief Risk and Compliance
Officer’s Review, page 51• Principal Risks andUncertainties, page 59

Description of theBusiness Model• Our Business Model andStrategy, page 24

Non-financial Key
Performance
Indicators• Customer balances, monthly active • Strategic Report, page 4
customers and businesses• Chair’s Statement, page 6• Primary customers• Chief Executive Officer’s• Total headcountReview, page 9

Financial Key
Performance
Indicators• Revenue growth• Gross profit margin• Chief Financial Officer’s
Review, page 14• Profit before tax• Overhead ratio• Client deposits

Climate-related
Financial Risks

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69

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

70

Corporate Governance Standards
Revolut operates in accordance with all corporate governance, legal and regulatory requirements. While notsubject to the UK Corporate Governance Code 2018 (the CG Code), Revolut largely complies with the CG Codewithin its Corporate Governance Framework on the basis that this is industry best practice and in order to achieve
positive governance outcomes for us and our stakeholders.

Revolut applies the spirit of the
CG Code within its Corporate
Governance Framework

Group Corporate
Governance Framework
Our governance structure is made up of the Group
Board, Group Board Committees and Group
Executive Committees.
The Board
The Board is responsible for setting the overall
strategy and culture of the Group, and for overseeing
management in its day-to-day running of thebusiness.
The Board is also responsible for ensuring the Grouphas in-place governance arrangements, policies andpractices appropriate for the size and nature of its
business.
In June 2023, the Board approved an updated
Revolut Corporate Governance Framework (RCGF)
which details the Group’s governance and internal
control framework, including, but not limited to, theGroup’s: (i) board, committee and sub-committee
structures, (ii) corporate structure (including allentities and branches); (iii) decision-making
processes; (iv) Three Lines of Defence model(described in more detail on page 53) of this Report;and (v) the governance framework for the

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

Company's subsidiaries. The RCGF acts as theoverarching guide in order to ensure a consistent,
centralised approach to Group governance.
The profiles for each of the Directors can be foundbelow on page 73, as well as further detail about theBoard.
The Board Committees
The Board maintains effective oversight of the Groupthrough Board Committees, which were establishedto assist the Board in discharging its duties.
The Board has established four Committees: (i)Board Risk & Compliance Committee (BRCC); (ii)
Board Audit Committee (BAC); (iii) Nomination
Committee (NomCo); and (iv) Remuneration
Committee (RemCo).
The Committees operate under delegated authority
from the Group Board, in each case as defined in therespective Committee’s Terms of Reference. The
Committee Chairs provide a high-level overview ofCommittee discussions at each scheduled meeting71

of the Board. Further information about each Board
Committee can be found below.
Executive Leadership and Executive Committees
The Board delegates authority for the day-to-day
management of the Group to the Group CEO. The

Group CEO is supported by the Group's executive
leadership team (Executive Leadership) and an
Executive Committee, operating under delegatedauthority from the Board. Further information about
our Executive Leadership and Executive Committee
can be found below on page 84.

Additional Executive Sub-Committees exist to consider specialist topics, as required.

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72

Board of Directors
Appointment date: 28 April 2022 (appointed to Revolut Ltd
Board on 1 January 2020)
Committee membership: BAC, RemCo, NomCo (Chair)

Martin Gilbert
Chair

Experience: Martin Gilbert co-founded Aberdeen AssetManagement in 1983, leading the company for 34 years andoverseeing its 2017 merger with Standard Life. Until November
2019, he was chairman of the UK’s Prudential Regulation
Authority’s Practitioner Panel and was Deputy Chairman of theBoard of Sky plc until 2018. Before this, he was the Chairman ofFirstGroup. In 2015, he was ranked no. 22 in the Harvard
Business Review’s 900 best- performing CEOs in the world.
Martin holds an LLB from the University of Aberdeen and an MA
in Accountancy. He qualified as a chartered accountant with
Deloitte.
Current External Appointments: Cobalt Data Centre 2 LLP, The
Haddeo Land LLP, Moy Sheep Farms LLP, Member of theMaven Capital (Telfer House) LLP, The Heather Club Limited,
Glencore plc, Wentworth Club Limited, Observatory for Sport in
Scotland, Old Oak Holdings Limited, PGA European Tour, PFD
MJG Limited NET ZERO Technology Centre Limited, DAGG LLP
Saranac Partners Limited, Martin Gilbert Limited ASSETCO PLC,
Maryculter House Limited, Templar Hotels Limited, Scottish Golf
Limited, Toscafund Asset Management LLP, Beach Tree
Catering Limited, Scotland International, SVM AssetManagement Holdings Limited, Buyside Trading Solutions
Limited

Appointment date: 15 July 2020 (appointed to Revolut Ltd
Board on 6 December 2013)
Committee membership: NomCo
Experience: Nik Storonsky launched Revolut in 2015 totransform the way we spend and transfer money abroad. Since
then, he has put Revolut on the path of simplifying all things
money. Before founding Revolut he was an emerging markets
equity derivatives trader at Credit Suisse and Lehman Brothers,
where he traded more than $2 billion across various options,swaps and foreign exchange instruments. Nik holds an MS in
Applied Physics and Mathematics from the Moscow Institute ofPhysics and Technology and an MA in Economics from the New
Economic School, Moscow.

Nik Storonsky

Current External Appointments: n/a

CEO & Co-founder

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73

Appointment date: 15 July 2020 (appointed to Revolut Ltd
Board on 11 August 2017)
Committee membership: n/a

Vlad Yatsenko
CTO & Co-founder

Experience: Vlad Yatsenko co-founded Revolut with Nik
Storonsky in 2015 and is its Chief Technology Officer. His
software engineering experience spans industries including
travel and finance and includes creating real-time billingsystems at Comarch and booking engines for Sabre Airline
Solutions. Having built financial software systems at tier one
investment banks including UBS, Deutsche Bank and Credit
Suisse, he realised that to deliver a next-generation digitalbanking service he would need to build it himself. He holds an
MS in Computer Science from the National University of KyivMohyla Academy.
Current External Appointments: n/a

Appointment date: 28 April 2022 (appointed to Revolut Ltd
Board on 21 February 2020)
Committee membership: NomCo, BRCC, RemCo (Chair)
Experience: Michael Sherwood retired as Vice Chairman ofGoldman Sachs and Co-Chief Executive Officer of Goldman
Sachs International in 2016, after 31 years with the company
and 22 years as a partner. He was a founding sponsor ofHarefield Academy and a member of the Westminster Abbey
Development Board. He is a former Trustee of the Mayor’s Fundfor London and the Serpentine Galleries.

Michael Sherwood
Independent Non-Executive
Director

Current External Appointments: Michael is a Board Member ofMoscot Inc and of Credit Benchmark Limited and a Trustee ofGreenhouse Sports Limited.

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74

Appointment date: 28 April 2022 (appointed to Revolut Ltd
Board on 8 March 2019)
Committee membership: BRCC, BAC (Chair)
Experience: Caroline Britton was at Deloitte LLP for 30 years
until 2018 and was an audit partner for 18 years. Caroline holds
an MA in Economics from the University of Cambridge. She is afellow of the Institute of Chartered Accountants of England andWales.

Caroline Britton
Independent Non-Executive
Director

Current External Appointments: Caroline is a Non-Executive
Director and Chair of the Audit Committee at both
MoneySupermarket.com Group plc and Sirius Real Estate
Limited. She is also a member of the Audit, Finance Risk andInvestment
CommitteeforMake-A-Wish
Foundation
International, and a Trustee and Chair of the Audit and Risk
committee at the Royal Opera House.

Appointment date: 28 April 2022 (appointed to Revolut Ltd
Board on 21 February 2020)
Committee membership: BRCC, BAC, RemCo
Experience: Ian Wilson spent much of his career with RoyalBank of Scotland, latterly as Director of Credit, Retail Banking.
Later executive roles included Managing Director of BusinessBanking at Santander UK, Chief Risk Officer for GE Money UK,
Tesco Bank, Charter Court Financial Services, and Monzo Bankand Strategic Risk Director for Virgin Money. He is a charteredbanker, a fellow and former Vice President of the Chartered
Banker Institute in Scotland.

Ian Wilson(Independent Non-Executive
Director)

Current External Appointments: Ian the Chair of the Scottish
Building Society, a director for East Pier Advisory and is also a
Non-Executive Director for Kompasbank.

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75

Appointment date: 28 April 2022 (appointed to Revolut Ltd
Board on 1 August 2021)
Committee membership: BAC, BRCC (Chair)John Sievwright
Independent Non-Executive
Director

Experience: John Sievwright had a 20-year career with Merrill
Lynch holding global leadership positions, latterly Chief
Operating Officer - International. He earlier worked in financeand accounting roles at Bankers Trust and Bank of Tokyo
International, having begun his career as an auditor at Ernst &Young where he qualified as a Chartered Accountant. While at
Merrill Lynch, he was President of the Futures Industry
Association. He is a former Senior Independent Director (SID)and Chairman of the Audit and Risk Committee at ICAP plc (later
NEX Group) and former SID and Chairman of the Audit
Committee of FirstGroup plc. He has an MA in Accountancy andEconomics from the University of Aberdeen.
Current External Appointments: John is Chairman of Burford
Capital Limited, serving on its Nomination and Compensation
Committees, as well as Chairman of LoopFX. John also serves
as trustee, and the Chairman of the Audit Committee, of several
Abrdn closed end funds and an Abrdn open end fund.

Appointment date: 27 November 2023 (appointed to Revolut
Ltd Board on 27 November 2023)
Committee membership: BRCC, RemCo
Experience: Dan Teodosiu has over 30 years of experience inbuilding and managing engineering and research teams, scaling
platforms, as well as developing infrastructure capable ofsupporting billions of users. During this time, he has held senior
positions at Google, Microsoft and HP Labs. Most recently, Dan
acted as CTO of Onfido and, prior to that, as CTO of Criteo,
Europe’s largest ad tech company.

Dan Teodosiu(Independent Non-Executive
Director)

Current External Appointments: Dan was appointed as a
Director of QIMA Partners Group Limited in January 2024 and is
an Executive in Residence at Balderton Capital, providing
technical and engineering-focused support.

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76

Role of the Board
The Board’s primary responsibility is to promote thelong-term success of the Group. The Board
discharges this responsibility with assistance fromthe Board Committees and by overseeing Revolut’s
Executive Leadership team, to whom the Board
delegate the day-to day-running of the business.
The Executive Leadership team report to the Board
at regular intervals, ensuring that the Board monitorsand oversees the implementation of key initiatives bymanagement. Martin Gilbert (Chair of the Board)facilitates open discussions and constructive
challenge to the Executive Leadership at Board
meetings.
There is a clear division of responsibilities between
the Board and the executive leadership of theGroup’s business, which is led by Nik Storonsky as
the Group CEO.

Financial
•

•

•
•

•
•

Key focus areas of the Board
The Board's focus can be categorised underfollowing heads:
Strategic
•

•

•

•
•
•

Reviewing and approving the strategic
direction of the Company including, as
appropriate, the strategies for each of theCompany’s subsidiaries, including major
licence submissions.
Reviewingandapprovingmaterialacquisitions and disposals of assets andshare acquisitions and disposals which aresignificant in terms of the business of theGroup.
Reviewing and approving third party
engagements which are significant in termsof the business of the Group.
Reviewing and approving any change to, or
off-boarding of, a third party engagement.
Considering longer term strategic threats tothe business operations of the Group.
Reviewing and approving the scoping of new
Product proposals, where such proposals
are not in scope of the company ProductStrategy

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

Reviewing and approving the Group’s key
financial objectives including revenue, grossprofit margin and net profit margin.
Reviewing and approving the proposed
allocation of capital within the Group, unlesssuch approval is explicitly delegated to the
Asset
and
Liabilities
Committeebymateriality threshold.
Reviewing and approving the Group annual
financial budget.
Receiving
Business
andFinancialconsolidated reports for the Group andreviewing actual performance in light of theGroup strategy, objectives, business plans
and budgets.
Approving the Group’s Annual Report andAccounts.
Reviewing the application of accounting
policies and practices, including review andapprovalofsignificant
changesinaccounting policies and practices, andmonitor the maintenance of adequate
accounting and other records and systemsof planning and internal control andinspection.
Risk

•
•

•
•

•

Reviewing and approving the Group’s risk
appetite framework.
Reviewing and approving the Group widerisk appetite for Level 1 risks (for further
information on risk, please see page 53 of
this Report)
Monitoring the Group’s performance against
its risk appetite.
Considering any material risks and approve,as appropriate, recommended actions
escalated by the BRCC.
Monitoring the capital and liquidity positionsof the Group.
Culture and Behaviour••

Establishing the Group’s purpose, values andstrategy, and satisfy itself that these and its
culture are aligned.
Articulating the Group’s cultural values andthe behaviours expected from all employees
by setting the cultural 'tone from the top'.

77

•

•

Monitoring and challenging the process withembedding cultural values and expectedbehaviours across the Group.
Ensuring that the cultural values andexpected behaviours are being reinforced in
how employees are onboarded and theirperformance managed.
Legal Regulatory and Governance

•

•

•

•

•

Considering and approving any changes to
the Company’s capital structure including
any share transfers, issues, option poolincreases or share buy backs.
Reviewing and approving the issue of all
circulars, prospectus and listing particulars
to equity shareholders of the Company.
Reviewing and approving any changes to
the Group’s regulatory status or any decision
to commence or close any business activity
which is subject to government, regulatoryor other licences or approvals, including theincorporation of any new Group entity or
branch.
Reviewing and approving the Group’s highlevel corporate governance arrangements toensure these reflect principles of good
governance including transparency andaccountability, and support the Group’s
values and sustainability of the businessover the longer term.
Ensuring that the Board and wider Group
maintains an open and transparent dialogue
with its regulators.

Key activities
In 2023, the Board:
•

•
•

•
•
•
•

•
•

•

•

•

•

Reviewed reports from the CFO on financial
performance and discussing financial
updates with the CFO
Received regular updates from therespective Chairs of the Board Committees
Approved and actioned the appointment of
Dan Teodosiu as Independent NED to the
Board
Reviewed diversity, equity, and inclusion
data and initiatives
Received updates on the Group's Long Term
Strategy
Risk reviewed Revolut's 2026 Strategy andreviewing the Risk Appetite Framework
Reviewed and approved the Terms ofReference of the Board Committees andExecutive Committees
Review regular reports on progress with the
ESG strategy
Approved the Group’s annual budget, ICAAP,
ILAAP, Recovery Plan,and Solvent Wind
Down Plan
Invitedmembersofthe
Executive
Leadership or external advisers to deliver
deep-divepresentations
onmatters
considered key to the long-term sustainablesuccess of the Group
Monitored key performance indicators
including financial performance and capital
forecasting
Discussed
regulatory
developments(including Consumer Duty regulations), howthese would impact Revolut's business (if atall) and set relevant actions to address thisApproved the Group's 2021 and 2022 annual
reportsandconsolidated
financialstatements

Time Commitment

Self-Assessments and Training

Independent Non-Executive Directors are required to
devote to the Company such time as is necessary forthem to discharge their duties in an effective
manner. The minimum time commitment for
Independent Non-Executive Directors is 36 days perannum, which includes time spent preparing for andattending meetings of the Board and its Committees,
as well as time for each director’s ongoingprofessional development.

The Board performs an annual self-assessment of
the individual and collective skills of the Board. The
findings of these self-assessments are used to
inform the Board’s Succession Plan and Board
Training Programme, which help to ensure that theBoard is both stable and resilient in the long-term
and that the Board possesses an appropriatebalance of skills, knowledge and experience tocollectively lead the Group, both now and into the
future.

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78

Effectiveness Reviews
The skills, performance and effectiveness of the Board and the Board Committees are also assessed annually, inorder to identify the Board's strengths and development areas.
••

Every three years, the Board instructs an independent firm to conduct this evaluation and the last
independent evaluation of the Group Board was completed during Q1 2023.
In the intervening years, evaluations are carried out internally, by Revolut's Corporate Governance team.

The recommendations identified in the evaluations are reviewed and presented to the Board by the Chair, Martin
Gilbert, who subsequently oversees the implementation of those recommendations.

Group Board Meeting Arrangements and Reporting
The agenda for the Group Board is driven by the Chair, with support from the Group CEO, Company Secretary andwider Governance team. Ahead of each calendar year, the forward-looking agenda for the year is set. This
provides a clear roadmap for the key strategic, financial, operational and risk matters on which the Board expects
to be reported to by management. This enables the Board to have oversight of the performance of the Groupagainst expectations.
Throughout the Board and Committee meeting deliberations, the Board considers the views and interests ofRevolut’s stakeholders such as customers, employees, shareholders and regulators. For further information, please
see the Board's s.172 statement on page 86.
Meetings of the Group Board are held at intervals of around six weeks, or convened ad hoc as required. In 2023,
there were nine meetings of the Group Board convened, of which one was ad hoc.

Board and Committee meeting attendance
The table below shows the number of meetings held in 2023 by the Board of Directors and its Committees, alongwith the attendance of the individual Board members.
Board

BAC

BRCC

NomCo

RemCo

Total number of meetings

9

6

7

5

7

Martin Gilbert

8

6

2

5

6

Nik Storonsky

9

—

—

5

—

Vlad Yatsenko

8

—

—

—

—

Michael Sherwood

9

3

7

5

7

Caroline Britton

9

6

7

—

3

Ian Wilson

9

6

5

—

6

John Sievwright

9

6

7

—

4

Dan Teodosiu

1

—

2

—

1

*Dan Teodosiu was appointed as an Independent Non-Executive Director on 27 November 2023.
**Changes were made to Committee composition during the course of the year, meaning certain Board members
ceased joining particular Committees as members.

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79

Culture and People
Revolut's success is based on our people and culture—
diverse,performance-driven
anddeeplycollaborative — and the Revolut Board ensures that astrong and healthy corporate culture cascades fromthe top down, enabling Revolut to excel in the highly
regulated environment in which it operates.
Through delegating hiring responsibilities to the
Executive Leadership, the Board maintains oversightand ensures that the Group places importance on
the hiring process, guaranteeing we hire and retain
employees of the highest calibre and integrity, withvalues consistent with Revolut's. Our company
values, detailed on our website at www.revolut.com/
our-culture, lay the groundwork for this culture.
Refer to the Our People section on page 40 for moredetails.

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80

Board Committees
Group Board Risk & Compliance
Committee (BRCC)
Membership
The BRCC is chaired by John Sievwright and its
other members are Caroline Britton, Dan Teodosiu,
Michael Sherwood and Ian Wilson. In June 2023, theBoard conducted a composition review of the BRCC
and the members have been selected based on theirskill set and experience to oversee and implement
BRCC's responsibilities. For further information on
the Directors' skills and experience, please refer totheir bios above on page 73.

•

Review the Group's policy inventory andapprove the Board-level policies where
relevant.

•

Review the design and effectiveness ofGroup's risk management operations.

•Support the Board in defining the Group’s
risk culture, ensuring that it is communicatedeffectively and understood by the Group’s
Executive Management and employees. This
includes advising the Board whether theGroup’s risk culture is supportive of 'doing
the right thing' in difficult or challenging
circumstances..

•

In conjunction with RemCo, advise the Board
whether
proposed
incentive
andremuneration plans are consistent with therisk culture expectations and whether they
are likely to encourage well-controlled andtransparent management risk-taking•

Ensure the Group maintains an open andtransparent dialogue with its regulators andgovernmental bodies.

•

Review
current
andforward-looking
regulations, legislation and any applicableindustry practices.

•

Consider when external advice and/or
assurance on Risk and Compliance mattersshould be sought to challenge the BRCC's
and/or the Risk and Compliance function's
assessments.

Role and Responsibilities
The BRCC is responsible for supporting the Board in
fulfilling its duties with regards to risk andcompliance management, which includes, but is not
limited to, the following:•••

Review and recommend the Group’s
Enterprise Risk Management Framework(ERMF) and Risk Appetite Statement (RAS)
to the Board for approval, and monitor theGroup’s performance against the ERMF and
Risk Appetite profile.
Consider any material emerging risks
identified, through risk horizon scanning,
and review and challenge recommended
action plans (including action plans from theGroup's risk function).
Review:◦

the capital and liquidity positions of
the Group,◦

the Group's credit and market risk
profiles (including any material
financial risk arising from climatechange), and◦Key activities
During 2023, the BRCC:•

reviewed the top risks and decisions
escalated from the Group Executive Risk
Committee and challenged on theirrespective remediation status'

the Company’s financial viability
metrics.

•

Recommend to the Board key documents
such as ICAAP, ILAAP, Recovery Plan andWind Down plan.

••

Review matters pertaining to stress testing
activity and any corrective actions stemmingfrom regulatory engagements.

reviewed the progress of key control
remediation activities, risk/control findings
and and Control Enhancement Programmes•

reviewed and acknowledged on key risk
culture metrics including the ratio between

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81risk incidents and mandatory employee
training compliance••approved the annual review of Group risk,
compliance and liquidity policies

reviewed reports on the capital and liquidity
positions of the group and approved
amendments to the credit limits based onrisk profiles

Group Board Audit
Committee (BAC)
Membership

Key activities

The BAC is chaired by Caroline Britton and its othermembers are John Sievwright, Martin Gilbert and Ian
Wilson.
In June 2023, the Board conducted a composition
review of the BAC and the members have been
selected based on their skill set and experience tooversee and implement BAC's responsibilities. For
further information on the Directors' skills andexperience, please refer to their bios above.

During 2023, the BAC:
• Reviewed the integrity and quality of theGroup’s financial information, including theresults announcements, the Annual Reportand Accounts.
•

Reviewed the effectiveness of the Group’s
internal controls.

•

Ensured and oversaw the integrity,
independence
andeffectivenessof
Revolut’s
Whistleblowing
PolicesandProcedures.

•

Evaluated the effectiveness of both theGroup's internal audit function and external
auditors.

•

Role and Responsibilities
The BAC is responsible for supporting the Board in
fulfilling its duties with regards to oversight ofprudential, financial and audit matters which
includes, but is not limited to, the following:•

Monitoring the integrity of the Group’s
financial statements and disclosures.

•

Reviewing the effectiveness of the Group’s
internal system of financial controls.

Reviewed and approved the external audit
plan, progress and risk reports from theexternal auditor, BDO, and approved theGroup's 2021 and 2022 annual reports andconsolidated financial statements.

•

Monitoring
theperformanceandindependence of the Internal Audit function.

In February 2024, the BAC approved the reappointment of BDO as Group auditors.

•

Overseeing and leading the engagementwith the Group’s external auditor.

•

Reviewing the whistleblowing arrangements
by which staff may raise concerns about
possible improprieties.

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Group Nominations
Committee (NomCo)
considered for nomination.

Membership
NomCo is chaired by Martin Gilbert and its othermembers are Michael Sherwood and Nik Storonsky.
For further information on the Directors' skills andexperience, please refer to their bios above.
Role and Responsibilities
NomCo is responsible for supporting the Board in
fulfilling its duties with regards to the assessment,
selection and nomination of candidates for Board
and Executive Management positions, which
includes, but is not limited to, the following:•

Reviewing the structure, size, composition
and independence of the Board and making
recommendations with regard to any
changes it considers necessary.

•

Approving

Director

appointments

toregulated subsidiaries.

Key activities
During 2023, NomCo:•

Reviewedandrecommended
thereappointment of the Board's Non-Executive
Directors.

•

Recommended
andapproved
theappointment of Dan Teodosiu to the Board.

•

Reviewed and approved appointment /reappointment of directors to the Boards ofthe Group's regulated subsidiaries.

•

Overseeing the succession planning process
for the Board and Executive Management.

•

Ensured that robust plans are in place for
Board, CEO and wider Executive succession.

•

Overseeing
each
Board
appointment
procedure, which includes the completion ofrobust due diligence to assess candidates•

Reviewed and approved amendments to
NomCo's Terms of Reference.

•

Setting the remuneration for the top 25
highest paid employees, those performing
control functions and material risk takers.

•

Establishing the Group’s Remuneration
Policy, ensuring that it is benchmarked
appropriately.

•

Overseeing any major changes in employee
benefits structures.

•

Reviewing the share incentive plans forapproval by the Board and shareholders.

Group Remuneration
Committee (RemCo)
Membership
RemCo is chaired by Michael Sherwood and its othermembers are Dan Teodosiu, Martin Gilbert and Ian
Wilson. In June 2023, the Board conducted acomposition review of the RemCo and the members
have been selected based on their skill set andexperience to oversee and implement RemCo's
responsibilities. For further information on the
Directors' skills and experience, please refer to theirbios above.
Role and Responsibilities
RemCo is responsible for supporting the Board in
fulfilling its duties with regards to the remuneration
arrangements for the Group and for ensuring thatthey align with the Group's business strategy andrisk strategy in terms of incentivisation. This
includes, but is not limited to, the following:

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Key activities
During 2023, RemCo:• reviewed
andapproved
employee
performance bonuses and remuneration,
including appropriateness reviews••

reviewed and approved Revolut's Long-term
Incentive Plan
provided oversight and advice to the Board
in relation to the Group’s remuneration
policyExecutive Committees
Executive Committee (ExCo)•

ExCo is comprised of key members of senior
management including the Group CEO, Group CTO,
Group CRO, Group GC and Group CFO, as well as
representatives from other areas of the Company
including Product and Control departments.

Review progress on agreed priorities (goals
and roadmaps) and align executives inclearing blockers for key priorities of theGroup.

•

Ensure consistent communication across theGroup of strategy, priorities, and actions.

•

Recommend matters to the Group Board forapproval.

ExCo is responsible for developing the strategy for
Board approval and overseeing its execution,
monitoring the Group’s financial position andperformance, and overseeing the Group’s progressagainst its goals and approved annual budget. Morespecifically, ExCo’s purpose is to:•

ExCo provides advice and guidance to the CEO, whomakes the key decisions regarding the firm’s
strategy and the execution of key priorities.
ExCo meets weekly or more often as required.

Support the CEO to make key decisions for
the Group.

Group Executive
Risk Committee (GERC)
The Board delegates authority for the day-to-day
risk and compliance management of the Group to theGroup Chief Risk Officer. The Group Chief Risk
Officer is supported by the GERC, operating underdelegated authority from the Board Risk &Compliance Committee. Main responsibilities involve,
but are not limited to:•

Monitoring the risk profile of the Groupagainst the Board Risk Appetite Statement(RAS), reviewing and approving mitigationplans in case of any breaches.

•

Setting, allocating and periodically reviewing
limits and controls that are supplementary to
the Board RAS and help managing risks on amore granular level.

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•

Reviewingandmonitoringtheimplementation of the Risk Management
framework across Revolut.

•

Evaluating the risk and complianceawareness and maturity of each department
or risk-taking unit.

•

Monitoring the timely closure of risk, control
and compliance issues.

•

Consideringandapprovingproposedchanges to Executive management policies

and reviewing policies for the Board's
approval.
•

Exercising oversight with regard to risk
assessments and risk management ofchange activities that impact crossfunctional areas.

•

Reviewing and deciding on mattersescalated from the ERC sub-committees or
Revolut's subsidiaries' risk function.

•

Reviewing and monitoring the liquidity risk
profile of the Group.

•

Reviewing the credit risk and market risk
limit utilisations.

•

Reviewing and approving interest rate risk
limits and utilisations.

•

Reviewing and approving assets and liability
management risk frameworks and policies.

•

Reviewing and approving capital and assets
and liability management strategies.

•

Reviewing and approving liquidity transfer
pricing and capital allocation frameworks
and policies.

•

Reviewing and approving forward-looking
capitalisation and funding plans.

•Receiving and approving future businessplans with respect to capital adequacy andliquidity risk profile.

Assets and Liability
Committee (ALCO)The Board delegates authority for the day-to-day
financial asset and liability management of the Groupto the Group CFO and/or Head of Treasury. The
Group CFO and/or Head of Treasury are supportedby the ALCO, operated under delegated authority
from the BRCC who are responsible for the following:•

Management and optimisation of thebalance sheet and the Group’s financial
asset investments in line with Board
approved appetite.

•

Reviewing and monitoring the controls in
relation to safeguarding obligations.

•

Reviewing and monitoring the capital andliquidity adequacy of the Group.

•

Reviewing Contingency Funding Plans (CFP)and recovery and resolution plans.

•Reviewing and monitoring the Risk Appetite
Statements (RAS) with respect to financial
risks.

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Section 172 Statement
Maintaining and continuing to develop strong stakeholder relationships is essential to Revolut’s success as we
continue to strive to expand our global footprint, product suite, customer base and employee headcount. Our key
stakeholders include our: customers; employees; investors; regulators; and partners and suppliers.
When making decisions, the Board is conscious of its responsibilities under s172(1) of the Companies Act 2006 topromote the long-term success of the company, balancing the interests of the relevant stakeholders andmaintaining high standards of business conduct.
We have outlined our key actions and steps taken as a Group to engage with our stakeholders and discharge ourduties under s172(1) of the Companies Act 2006 in the following sections of this report:s172 consideration

Annual Report Section

Long term consequences of decisions

Strategic Report; Our Business Model and Strategy
Strategic Report; Environmental, Social and Governance(ESG)

Page Number
24
46

Interests of employees

Strategic Report; Our People

40

Fostering business relationships with suppliers,
customers and others

Strategic Report; Engaging with Stakeholders

36

Impact of operations on the community and theenvironment

Strategic Report; Environmental, Social and Governance
(ESG)

46

Maintaining a reputation high standard of businessconduct

Corporate Governance; Corporate Governance70

Corporate Governance; Board of Directors

73

Corporate Governance; Executive Committees

84

Strategic Report; Our Investors

38

Acting fairly between members of the company

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Directors’ Report
The Directors present their report and the audited financial statements of the Group and Company for the year
ended 31 December 2023.
In accordance with section 414C (11) of the Companies Act 2006, and in keeping with the spirit of the UK
Corporate Governance Code, the following matters required to be included in the Directors' report have been
included elsewhere in the Annual Report. These matters are cross-referenced in the table below and together form
part of the Directors' report.
Disclosures

Annual Report Section

Page Number

Principal Activities of the Company

Strategic Report; Our Products and Services

23

Business Review

Strategic Report; Our Business Model and Strategy

24

Future Developments in the Company's
Business

Strategic Report; Our Business Model and Strategy

24s172 Statement

Corporate Governance; Section 172 Statement

86

Maintaining and Developing Employee
Involvement

Strategic Report; Our People

40

Employee Engagement

Strategic Report; Engagement with Employees

43

Stakeholder Engagement

Strategic Report; Engaging with Stakeholders

36

Corporate Governance Standards

Corporate Governance; Corporate Governance Standards

71Group Corporate Governance Framework Corporate Governance; Group Corporate Governance Framework

71

Revolut Group Board of Directors andCommittees

Corporate Governance; Board of Directors

73

Risk Management and Internal Controls

Risk Management and Compliance50

Culture and People

Strategic Report; Our People

40

Environmental Reporting

Strategic Report; Environmental, Social and Governance (ESG)

46

Licences and Authorisations

Strategic Report; Our Regulators

38

Group Structure and Branches Outside
the UK

Notes to the Financial Statements; Investments in Subsidiaries(Note 15)

139

Results and Dividends
The consolidated net profit for the year after taxation was £344.1 million (2022: £5.8 million). The Directors did notrecommend a dividend (2022: £nil).

Research and Development
The Group undertakes research and development activities in respect of the development and enhancement of its
technology platform. Revolut incurred research and development costs during 2023 of £122.3 million and these arerecognised in the Consolidated Statement of Comprehensive Income (2022: £88.0 million).

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Political Donations
The Group has not made any political donations to, nor incurred any political expenses in relation to, any registeredpolitical parties, organisations or candidates.

Directors’ Liabilities
Revolut indemnifies each of the Company's Directors against third party liability, subject to the conditions set out
in section 234 of the Companies Act 2006. This qualifying third party indemnity provision was in force during the2023 financial year.

Financial Instruments
The Group enters into a series of financial instruments for the purposes of its business operation, comprising cash
and cash equivalents, treasury investments hold-to-collect (including bonds, collateralised loan obligations (CLO),
commercial paper (CP), certificate of deposits (CD), Schuldscheindarlehen (SSD), and reverse repurchaseagreements) and treasury investments hold to collect and sell (including government bonds), derivatives held atfair value, loans and advances to customers, customer liabilities, and other payables and receivables measured atamortised cost. Details of the Group’s financial instruments are set out in Note 30 of the consolidated financial
statements.
The Group is exposed to interest rate risk. The Group undertakes fair value hedge accounting using interest rate
swaps for its non-interest-bearing core deposits. Details of the Group’s hedge accounting are set out in Note 30.5of the consolidated financial statements.
The Group becomes party to foreign exchange forward and swaps contracts in the normal course of business.
Refer to Note 30.2 for further details.
The Group’s financial risk management objectives and policies are set out in the Risk Management section of theStrategic Report, along with the Group’s exposure to credit risk, liquidity risk, and market risk.

Acquisition of Own Shares
Please refer to Note 28 on page 155 for information about the purchase of shares by the Company's Employee
Benefit Trust (such shares are treated as the Company's 'own shares'). The Company did not buyback any othershares in 2023 (2022: £nil).

Post Balance Sheet Events
Please refer to note 34 on page 188 for information about our post balance sheet events.

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Going Concern
The consolidated financial statements are prepared on a going concern basis as the Directors are satisfied that theGroup and the Company have the available resources to continue in business for a period of at least twelve
months from the date of approval of the consolidated financial statements.
The going concern assessment is based upon the latest financial forecast prepared by management. Appropriate
assumptions have been made in the base case forecast in respect to user, revenue growth, and profitability basedon the historical performance of the business and expected changes to the business over the forecast period.
The Directors have also considered as part of the going concern review the severe, but plausible, downside
scenarios used in the Group's detailed ICAAP and ILAAP to stress-test the viability of the business. The scenarios
tested are shared below and were tested before and after actions from Group management. The table includes theprincipal risks being stressed as described in the Risk Management and Compliance section (page 50).

TypeScenario

Description•

Interest rates
decrease•

MarketInterest rates
increase

Idiosyncratic•

Reputational
damage•Principal risks anduncertainties

Property prices drop materially triggering widespread defaults •leading to reduced credit availability and a sharp drop in global GDP.
•
Inflationary pressures ease and central banks respond by cutting•
rates sharply to historical lows for an extended time period.

Strategic risk

Inflation increases globally. Central banks raise interest rates •(beyond current levels) resulting in a global recession.
•
Unemployment increases and GDP growth stagnates for a•
protracted period.

Strategic risk

Credit risk
Interest rate riskin the banking
book (IRRBB)

Credit risk
Market (FX) risk•This is based on the September 2022 Bank of England Annual
Cyclical Scenario.

•

An operational event occurs resulting in severe reputational damage. •Strategic risk•

Loss of confidence leads many customers to withdraw funds and •stop using Revolut.

Operational risk•

It takes considerable time before trust is restored.

In all of these scenarios, the Group's capital and liquidity remain above regulatory requirements. This sufficiency
does not require any external financing.
In addition to the stress tests in the Group's comprehensive ICAAP and ILAAP, Revolut has performed a series ofreverse stress tests and examined three additional stress scenarios to evaluate the resilience of its diversified
business model. Unlike the ICAAP and ILAAP tests, the scenarios were assessed solely prior to any managerialinterventions by the Group. The three stress scenarios encompass a situation where there is no change in
Revolut's existing regulatory environment, a cost of living crisis across EEA and UK, and an idiosyncratic downside
scenario. Under all three stress scenarios, Revolut continues to generate profit and maintains sufficient capital andliquidity, requiring no external funding throughout the assessment period. These findings add to the substantial
evidence supporting the Group's ability to continue as a going concern.
The Directors have considered the forecasts and stress tests for the Group and have, at the time of approving
these consolidated financial statements, a reasonable expectation that the Group and the Company have adequate
resources to continue in operation for a period of at least twelve months from the date of approval of theconsolidated financial statements.

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Directors’ Responsibilities
Statement
The directors are responsible for preparing theAnnual Report, the Strategic Report, the Directors'
Report and the Financial Statements in accordancewith applicable law and regulations.
The directors have chosen to prepare the Group
Financial Statements in accordance with theInternational Financial Reporting Standards (IFRS) as
adopted by the United Kingdom (UK) and theCompanies Act 2006 and the Company Financial
Statements in accordance with Financial ReportingStandard 101, ‘Reduced Disclosure Framework’ (FRS101) and the Companies Act 2006.

The directors are responsible for such internal
control as they determine necessary to enable thepreparation of financial statements that are free frommaterial misstatement, whether due to fraud or error,
and have general responsibility for taking such steps
as are reasonably open to them to safeguard assetsof the Group and Company and to prevent anddetect fraud and other irregularities. The directors
are responsible for the maintenance and integrity of
the corporate and financial information on thecompany's website. Legislation in the United
Kingdomgoverningthepreparationanddissemination of the financial statements may differ
from legislation in other jurisdictions.

The law provides that the directors may only
approve the financial statements if they are satisfied
that they give a true and fair view of the state ofaffairs of the Group and Company and of the profit orloss of the Group and Company for the financial year
to which they relate.
In preparing the financial statements, the directors
are required to:• Maintain appropriate accounting records
which enable the directors to understandthe Company’s and Group’s transactions andfinancial position;• Select appropriate accounting policies andapply them consistently;• Present information, including accounting
policies, in a manner that provides relevant,reliable, comparable and understandable
information;• Make judgements and accounting estimatesthat are reasonable and prudent;• Provide additional disclosures in certain
circumstances to ensure that readers of thefinancial statements can understand theimpact of particular transactions andmatters on the Group and Company’s
financial position and financial performance;• Ensure that the financial statements comply
with the requirements of the Companies Act
2006;• Make an assessment of the Group andCompany’s ability to continue as a going
concern; and• Use the going concern basis of accounting
unless they either intend to liquidate theCompany or to cease operations, or have norealistic alternative but to do so.

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Director Confirmations
The Directors consider that the annual report and accounts, taken as a whole, are fair, balanced andunderstandable, and provides the information necessary for shareholders to assess the company’s position,
performance, business model and strategy.
Each of the directors, as of the date of approval of this Directors Report, confirm that:• so far as the directors are aware, there is no relevant audit information of which the Company and theGroup's auditors are unaware; and• they have taken all of the steps that ought to have been taken as a director in order to be aware of any
relevant audit information and to establish that the Company and the Group's auditors are aware of that
information.

Auditor
BDO LLP have indicated their willingness to be reappointed as auditors for another term and appropriatearrangements will be put in place for them to be deemed reappointed.
This report was approved by the Board on 28 June 2024 and signed on its behalf

Nik Storonsky
Director
28 June 2024

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Independent auditor’s report to themembers of Revolut Group Holdings Limited
Opinion on the financial statements
In our opinion:•

the financial statements give a true and fair view of the state of the Group’s and of the Parent Company’s
affairs as at 31 December 2023 and of the Group’s profit for the year then ended;•

the Group financial statements have been properly prepared in accordance with UK adopted international
accounting standards;•

the Parent Company financial statements have been properly prepared in accordance with United Kingdom
Generally Accepted Accounting Practice; and•the financial statements have been prepared in accordance with the requirements of the Companies Act
2006.

We have audited the financial statements of Revolut Group Holdings Ltd (“the Parent Company”) and its
subsidiaries (“the Group”) for the year ended 31 December 2023 which comprise the Consolidated Statement ofComprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial
Position, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity, theConsolidated Statement of Cash Flows, and notes to the financial statements, including a summary of material
accounting policies. The financial reporting framework that has been applied in their preparation is applicable law
and UK adopted international accounting standards, and as regards the Parent Company financial statements,
Financial Reporting Standard 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting
Practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicablelaw. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the auditof the financial statements section of our report. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.
Independence
We are independent of the Group and the Parent Company in accordance with the ethical requirements that are
relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we havefulfilled our other ethical responsibilities in accordance with these requirements.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis ofaccounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events orconditions that, individually or collectively, may cast significant doubt on the Group or Parent Company's ability tocontinue as a going concern for a period of at least twelve months from when the financial statements areauthorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in therelevant sections of this report.
Other information
The Directors are responsible for the other information. The other information comprises the information includedin the annual report and consolidated financial statements, other than the financial statements and our auditor’sreport thereon. Our opinion on the financial statements does not cover the other information and, except to theextent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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Our responsibility is to read the other information and, in doing so, consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in the course of the audit orotherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material
misstatements, we are required to determine whether this gives rise to a material misstatement in the financial
statements themselves. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Other Companies Act 2006 reporting
In our opinion, based on the work undertaken in the course of the audit:•

the information given in the Strategic report and the Directors’ report for the financial year for which thefinancial statements are prepared is consistent with the financial statements; and•the Strategic report and the Directors’ report have been prepared in accordance with applicable legal
requirements.

In the light of the knowledge and understanding of the Group and the Parent Company and its environment
obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the
Directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires
us to report to you if, in our opinion:•adequate accounting records have not been kept by the Parent Company, or returns adequate for our
audit have not been received from branches not visited by us; or•the Parent Company financial statements are not in agreement with the accounting records and returns; or•certain disclosures of Directors’ remuneration specified by law are not made; or•

we have not received all the information and explanations we require for our audit.

Responsibilities of Directors
As explained more fully in the Directors' Responsibility Statement, the Directors are responsible for the preparationof the financial statements and for being satisfied that they give a true and fair view, and for such internal control
as the Directors determine is necessary to enable the preparation of financial statements that are free frommaterial misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s and the Parent
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern andusing the going concern basis of accounting unless the Directors either intend to liquidate the Group or the Parent
Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordancewith ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these financial statements.
Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures inline with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including
fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged withgovernance and management of the Group.

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Identifying and assessing potential risks relating to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:
1

The legal and regulatory framework applicable the Group and the industry in which it operates andconsidered the risk of acts by the Group which would be contrary to applicable laws and regulations,
including fraud. These included but were not limited to compliance with relevant regulatory bodies and tax
legislation. We focused on laws and regulations that could give rise to a material misstatement in theGroup and Parent Company financial statements.

2

The susceptibility of the Group and Parent Company’s financial statements to material misstatement,
including how fraud might occur, by considering the nature of the industry and sector, and by assessing
the control environment and controls established by the Group to address risks identified by the Group orthat otherwise seek to prevent, deter or detect fraud.

3

Due to the acute dependency of the Group on its IT infrastructure we performed an assessment of the IT
landscape, performed bidirectional data flow assessments across product cycles identified as key, andassessed the design and operating effectiveness of the IT environment and relevant activity level controls
across the customer lifecycle for those products and services.

Audit response to the risks identified
As a result of assessing the above we identified the developing financial control environment as the key risk inrespect of how the audit was capable of detecting irregularities including fraud.
We place reliance on relevant IT controls with a combined audit approach obtaining evidence from test of controls
and substantive procedures. Due to the nature of the entity’s operations, we focused our procedures on theexistence of own cash balances, the existence of cash and commodities held in client designated bank accounts,
and the completeness and accuracy of client liabilities associated with those cash and commodities balances heldin third party bank accounts.
Risk – Existence of own and client cash and commodities held by the entity as at the year end
Our procedures included the following:•

We obtained independent confirmation of 100% of cash balances held on behalf of customers with third
parties.

•

We obtained independent confirmation of 100% of commodities held with third parties.

•

We obtained independent confirmation of 99.99% of own cash, other high quality liquid assets (HQLAs),
and short-term financial assets held with third parties, with appropriate rationalisation and alternative
procedures performed on the remaining immaterial 0.01%.

Risk – Completeness and accuracy of customer liabilities recognised as at the year end
Our procedures included the following:•

Assessing the design and testing the operating effectiveness of relevant IT general controls relating to thecore operating platforms and general ledger.

•

Testing the design and operating effectiveness of automated controls key to the processing, recording
and settlement of customer transactions including those key integrations and reconciliations relevant torevenue recognition and customer liabilities.

•

Data analytic procedures to independently recalculate and reconcile total customer liabilities at anindividual user level by direct interrogation of the entity’s IT environment for evidence of understatementof customer liabilities.

•

Analytics of customer account activity behaviours and a test of detail sample selected on risk criteria forevidence of misallocation and/or misappropriation of customer liabilities.

•

Analytic procedures over transactional revenues to identify anomalies and outliers in fees levied forindications of fraudulent revenue recognition.

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•

Review of external complaints data including that recorded by the Bank of Lithuania compared to internal
data source(s) to assess potential incompleteness of customer complaints recorded by the entity.

•

Review and analytic procedures over customer complaints and a test of detail sample selected on anumber of risk criteria for indications of systemic evidence of understatement of customer liabilities.

•

As part of our substantive procedures in respect of the revenue and treasury cycles customer existence
procedures (onboarding) for indicators of fictitious customers and accounts.

•

Analytic procedures over certain third-party internet review sites for customer sentiment.

In addition to the above our procedures to respond to risks included, but were not limited to:•

Review of correspondence with and reports to the regulators, including the FCA, the Bank of Lithuania,
and other regulatory bodies;•

Review of management’s reporting to the Board Audit and Risk Committee in respect of compliance andlegal matters;•

Enquiring of management and review of internal audit reports in so far as they related to the financial
statements;•

Identifying and testing journal entries to respond to the risk of management override of control;•

Reviewing dispute logs, breaches/incidents log, legal expenses and whistleblowing reports.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement teammembers who were all deemed to have appropriate competence and capabilities and remained alert to any
indications of fraud or non-compliance with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements,
recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of notdetecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery,misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and thefurther removed non-compliance with laws and regulations is from the events and transactions reflected in thefinancial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the Parent Company’s members, as a body, in accordance with Chapter 3 of Part 16of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Parent Company’s
members those matters we are required to state to them in an auditor’s report and for no other purpose. To thefullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Parent
Company and the Parent Company’s members as a body, for our audit work, for this report, or for the opinions wehave formed.

Matthew Hopkins (Senior Statutory Auditor)
For and on behalf of BDO LLP, Statutory Auditor
London, UK
28 June 2024
BDO LLP is a limited liability partnership registered in England and Wales(with registered number OC305127).

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96

Consolidated Statement of Comprehensive Income
for the year ended 31 December 2023

2023

2022

£000

£000

1,797,890

922,547

Note
RevenueFee income

6

1,209,815

792,573

Interest income

7499,561

82,689Other income

8

Cost of sales

88,51447,285(427,310)(280,889)

Fee expense

9(306,100)(228,320)

Interest expense

7(42,793)(16,065)

Credit losses on lending products

31.1(31,573)(5,180)Credit losses on non-lending products

31.1(15,015)(8,458)(31,829)(22,866)

1,370,580

641,658(932,752)(667,076)

437,828(25,418)

Other operating expenses
Gross profit
Administrative expenses

10

Profit/(loss) before tax
Tax (expense)/credit

12.1(93,753)

31,220344,075

5,802

28(10,222)

17,442

28

10,550(14,915)

12.3(2,822)

3,444

Other comprehensive (loss)/income, net of tax(2,494)

5,971

Total comprehensive income for the year

341,581

11,773

Net profit for the year
Other comprehensive income/(loss)
Items that may be reclassified subsequently to profit or loss
Currency translation differences
Changes in the fair value of financial assets measured at FVOCI
Tax (expense)/credit on components of other comprehensive income

The accompanying notes form an integral part of this consolidated financial statement.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 andhas not presented its own statement of comprehensive income in these consolidated financial statements.
The Company's net profit for the year ended 31 December 2023 amounted to £104.0 million (2022: £246.5 million).

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Consolidated Statement of Financial Position
at 31 December 2023

Note

31 December
2023

31 December
2022

£000

£000

AssetsCash and cash equivalents

13

12,827,654

10,581,018

Treasury investments

14

3,258,512

2,694,659

Investment in commodities

16

104,618

94,221

Trade and other receivables

17

496,239

341,559

Derivative financial assets

30.4

28,097

7,681

Loans and advances to customers

18

527,593

203,580

Inventories

19

Current tax assets
Deferred tax assets

15,79918,604

15,965

7,329

12.4

58,613

93,684

Property, equipment, and right-of-use assets

20

25,903

21,940Intangible assets

21

2,020

2,504

17,361,013

14,066,779

22

15,197,968

12,593,188

Trade and other payables

23

509,248

192,761

Derivative financial liabilities

30.4

66,33390,01724

10,244

16,314

16,734

3,166

15,800,527

12,895,446

Total assets
Liabilities
Customer liabilities

Provisions for liabilities
Current tax liabilities
Total liabilities
EquityShare capital——

Share premium

27

279

182

Merger reserve

1,287,803

1,287,803

31,917(312,158)

Retained earnings / (accumulated deficit)

240,487

195,506

Total equity

Other reserves

28

1,560,486

1,171,333

Total liabilities and equity

17,361,013

14,066,779

The accompanying notes form an integral part of this consolidated financial statement. The consolidated
financial statements on pages 97 to 188 were approved and authorised for issue by the Board and were signed
on its behalf on 28 June 2024.

Nik Storonsky
Director

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Company Statement of Financial Position
at 31 December 2023

Note

31 December
2023

31 December
2022

£000

£000

AssetsTrade and other receivables

17

25,279151

Investments in subsidiaries

15

1,437,757

1,313,688—

6

1,463,036

1,313,845

1,042

893

1,042

893

Deferred tax assets
Total assets
Liabilities
Trade and other payables

23

Total liabilities
Equity——Share premium

Share capital

27

279

182

Merger reserve913,212913,212350,455

246,454

198,048

153,104

Retained earnings
Other reserves

28

Total equity

1,461,994

1,312,952

Total liabilities and equity

1,463,036

1,313,845

The accompanying notes form an integral part of this individual financial statement. The consolidated financial
statements on pages 97 to 188 were approved and authorised for issue by the Board and were signed on its behalf
on 28 June 2024.

Nik Storonsky
Director

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Consolidated Statement of Changes in Equity

Share
capitalShare Net parent
premium investment

Mergerreserve

Other
reserves

Retainedearnings /(accumulated
deficit)Total
equity

£000

£000

£000

£000

£000

£000

£000

At 1 January 2022——

1,287,452—

107,568(317,960)

1,077,060

Net profit for the year

—

—

—

—

—

5,802

5,802

Other comprehensive income forthe year, net of tax

—

—

—

—

5,971

—

5,971

Total comprehensive income forthe year

—

—

—

—

5,971

5,802

11,773

Shares issued during the year

—

182

86

—

—

—

268

Adjustment to accrued expenses
related to issuance of shares

—

—

265

—

—

—

265

Transfer upon reorganisation——(1,287,803)

1,287,803———

Equity-settled share-based
payment charge

—

—

—

—

39,049—39,049Purchase of own shares by
Employee Benefit Trust

—

—

—

—

(446)

—

(446)

Tax impact of equity-settled
share-based payment charge

—

—

—

—

43,364—43,364

Total transactions with owners—

182 (1,287,452)

1,287,803

81,967—82,500At 31 December 2022

—

182

—

1,287,803

195,506(312,158)

1,171,333

At 1 January 2023

—

182

—

1,287,803

195,506(312,158)

1,171,333

Net profit for the year

—

—

—

—

—

344,075

344,075

Other comprehensive loss for theyear, net of tax

—

—

—

—

(2,494)—(2,494)

—

—

—

—

(2,494)

344,075

341,581

Shares issued during the year

—

97

—

—

—

—

97

Adjustment to accrued expenses
related to issuance of shares

—

—

—

—

—

—

—

Transfer upon reorganisation

—

—

—

—

—

—

—

Equity-settled share-based
payment charge

—

—

—

—

45,130—45,130Purchase of own shares by
Employee Benefit Trust

—

—

—

—

(143)

—

(143)

Tax impact of equity-settled
share-based payment charge

—

—

—

—

2,488

—

2,488

Total transactions with owners

—

97

—

—

47,475—47,572

At 31 December 2023

—

279

—

1,287,803

240,487

31,917

1,560,486

Transactions with owners

Total comprehensive income
for the year
Transactions with owners

The accompanying notes form an integral part of this consolidated financial statement.

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Company Statement of Changes in Equity

Share
capitalSharepremium

Mergerreserve

Other
reserves

Retainedearnings

Total
equity

£000

£000

£000

£000

£000

£000

At 1 January 2022

—

—

—

—

—

—

Net profit for the year

—

—

—

—

246,454

246,454

Total comprehensive income for the year

—

—

—

—

246,454

246,454

Shares issued during the year, including
the impact of reorganisation—

182

913,212

137,695—

1,051,089

Transfer of reserve upon reorganisation

—

—

—

(445)

—

(445)

Equity-settled share-based payment
charge———16,300—16,300Purchase of own shares by Employee
Benefit Trust

—

—

—

(446)

—

(446)

Tax impact of equity-settled share-based
payment charge

—

—

—

—

—

—

Total transactions with owners—

182

913,212

153,104—

1,066,498

At 31 December 2022—

182

913,212

153,104

246,454

1,312,952

At 1 January 2023—

182

913,212

153,104

246,454

1,312,952

Net profit for the year

—

—

—

—

104,001

104,001

Total comprehensive income for the year

—

—

—

—

104,001

104,001

Shares issued during the year, including
the impact of reorganisation

—

97

—

—

—

97

Transfer of reserve upon reorganisation

—

—

—

—

—

—

Equity-settled share-based payment
charge———45,087—45,087Purchase of own shares by Employee
Benefit Trust

—

—

—

(143)

—

(143)

Tax impact of equity-settled share-based
payment charge

—

—

—

—

—

—

Total transactions with owners

—

97

—

44,944—45,041

At 31 December 2023—

279

913,212

198,048

350,455

1,461,994

Transactions with owners

Transactions with owners

The accompanying notes form an integral part of this individual financial statement.

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Consolidated Statement of Cash Flowsfor the year ended 31 December 2023

2023

2022

£000

£000

437,828(25,418)

Non-cash portion of interest income(50,489)(14,785)

Non-cash portion of interest expense

17,738553

452

Cash flows from operating activities
Profit/(loss) before tax
Adjustments for non-cash items

Amortisation of intangible assets
Impairment losses other than expected credit losses

651

819

Depreciation of property, equipment, and right-of-use assets

10,167

9,050

Increase/(decrease) in provisions(8,820)14,502

Net change in expected credit losses

46,5888,316

Net loss/(gain) on changes in the fair value on hedging derivatives and hedged items

5,100(7,409)

Share-based payments

45,13039,049Other non-cash items in profit/(loss) before tax

4,243

8,672

508,140

33,401

2,805(11,208)(Increase)/decrease in trade and other receivables(258)(121,967)

Increase/(decrease) in trade and other payables

82,842(8,158)593,529(107,932)

Operating cash flows before movements in working capital and movements incustomer liabilities and hedging arrangements
Movements in working capital(Increase)/decrease in inventories

Operating cash flows before movements in customer liabilities and hedging
arrangements
Movements in assets and liabilities driven by operating activities
Net increase/(decrease) in customer liability in respect of deposits

2,244,301

6,530,072

Net increase/(decrease) in e-money in issue463,206(1,472,995)

Net (increase)/decrease in negative customer liabilities(8,490)(6,771)

Net (increase)/decrease in net settlement balances

73,87025,079Net increase/(decrease) in customer liability in respect of commodities

10,06429,026

Net (increase)/decrease in investment in commodities(10,397)(27,865)

Net (increase)/decrease in loans and advances to customers(359,818)(191,053)

Cash generated from operations

3,006,265

4,777,561

2,988

3,471

R&D credit received
Taxes paid
Net cash from operating activities(54,084)(20,371)2,955,169

4,760,661(5,951)(4,381)

Cash flows from investing activities
Purchase of property and equipment—(2,041)

Cash inflows from treasury investments

Payments to develop or acquire intangible assets

2,166,552

2,646,481

Cash outflows from treasury investments(2,731,055)(4,029,463)

Net cash from investing activities(570,454)(1,389,404)

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Cash flows from financing activities
Proceeds from issue of ordinary shares net of transaction costs

97

268

(6,034)(5,639)

(11)

(98)

(5,948)(5,469)Net increase in cash and cash equivalents

2,378,767

3,365,788

Cash and cash equivalents at beginning of year

10,581,018

7,052,609

Principal payments on lease liabilities
Loans repaid
Net cash from financing activities

Effect of exchange rates on cash and cash equivalents(132,130)

162,621

12,827,655

10,581,018

Interest paid

25,055

15,512

Interest received

449,072

67,904

Cash and cash equivalents at end of year
Additional information on cash flows from operating activities

The Company has taken advantage of the exemption allowed under paragraph 8 of Financial Reporting Standard
101, ‘Reduced Disclosure Framework’ ('FRS 101') and has not presented its own statement of cash flows in these
consolidated financial statements.

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103

NOTES TO THE CONSOLIDATEDFINANCIAL STATEMENTS

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104

1. General Information
Revolut Group Holdings Ltd (the 'Company') and its subsidiaries (together, the 'Group' and 'Revolut') provide a
range of services to retail and business users, including but not limited to electronic money, banking, payments(through physical and virtual cards), currency exchange, savings, subscriptions, peer-to-peer payments,
cryptocurrency and commodity exposures, share-trading, consumer loans, credit cards, and hotel stays.
The Company is a private company limited by shares and incorporated in England & Wales. The registered officeand the principal place of business is 7 Westferry Circus, Canary Wharf, London, England, E14 4HD.

2. Basis of Preparation
The consolidated financial statements of the Group have been prepared in compliance with the International
Financial Reporting Standards (IFRS) as adopted by the United Kingdom (UK) and the Companies Act 2006. The
individual financial statements of the Company have been prepared in accordance with Financial ReportingStandard 101, ‘Reduced Disclosure Framework’ ('FRS 101') and the Companies Act 2006.
The consolidated and individual financial statements are prepared on a going concern basis (as disclosed in Note3), under the historical cost convention, as modified by the recognition of certain assets and liabilities at fair value
as disclosed in Note 4.
The preparation of consolidated financial statements requires the use of certain critical accounting estimates. It
also requires management to exercise its judgement in the process of applying the Group and Company
accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions
and estimates are significant to the consolidated financial statements, are disclosed in Note 5.
The Company has taken advantage of the exemption in section 408 of the Companies Act 2006 to refrain frompresenting its individual statement of comprehensive income.
Although these consolidated financial statements have been released in the name of the parent, Revolut Group
Holdings Ltd, they represent the in-substance continuation of the previous Group headed by Revolut Ltd prior to
April 2022. The following accounting treatment has been applied to account for the restructuring of the Groupduring 2022, as set out in Note 2.1 (the 'Restructuring'):•

The consolidated assets and liabilities of the subsidiary Revolut Ltd assumed by the Company on the dateof the Restructuring were recognised and measured at the pre-Restructuring carrying amounts, without
restatement to fair value;•

The equity balances recognised in the Consolidated Statement of Financial Position include theaccumulated impact of equity movements of Revolut Ltd from 1 January 2022 to 29 April 2022, the date of
the Restructuring, as the Company was not active prior to the date of the Restructuring, and also include
the accumulated impact of equity movements of Revolut Group Holdings Ltd from 30 April 2022 onwards,
including the equity instruments issued to effect the Restructuring.

2.1 Restructuring of the Group in Prior Periods
During 2022, the Revolut group of companies underwent a business combination under common control asfollows.
On 29 April 2022, Revolut Group Holdings Ltd, a company incorporated and domiciled in the United Kingdom
acquired the ownership interest of Revolut Ltd, a company incorporated and domiciled in the United Kingdom via ashare-for-share exchange.
On 7 June 2022, Revolut Ltd transferred its direct 100% ownership interests in the following companies via a

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105

share-for-share exchange to Revolut Holdings Europe UAB, a company incorporated and domiciled in Lithuania, toestablish a European Union sub-group headed by Revolut Holdings Europe UAB:••••

Revolut Bank UAB, a company incorporated and domiciled in Lithuania
Revolut Insurance Europe UAB, a company incorporated and domiciled in Lithuania
Revolut Payments UAB, a company incorporated and domiciled in Lithuania
Revolut Securities Europe UAB, a company incorporated and domiciled in Lithuania

On 25 July 2022, Revolut Ltd transferred the direct 100% ownership interests in the following companies via a
dividend in specie to Revolut Group Holdings Ltd:••••

Revolut Holdings International Ltd, a company incorporated and domiciled in the United Kingdom
Revolut Holdings US Inc, a company incorporated and domiciled in the United States of America
Revolut NewCo UK Ltd, a company incorporated and domiciled in the United Kingdom
Revolut Corporate Services Ltd (formerly known as Revolut FIC Ltd) a company incorporated anddomiciled in the United Kingdom

On 2 September 2022, Revolut Ltd transferred its direct 100% ownership interest in Revolut Travel Ltd, acompany incorporated and domiciled in the United Kingdom, to Revolut NewCo UK Ltd via a share-for-shareexchange.
On 25 October 2022, Revolut Ltd transferred its direct 100% ownership interests in the following companies via a
dividend in specie to Revolut Group Holdings Ltd:••

Revolut Holdings Europe UAB
RT Digital Securities Cyprus Ltd, a company incorporated and domiciled in Cyprus

On 25 October 2022, Revolut Ltd transferred its entire ownership interest in Revolut Payments India Private Ltd,a company incorporated and domiciled in India via a dividend in specie to Revolut Group Holdings Ltd.
The restructuring of the group was recognised as a business combination under common control as control of all
impacted subsidiaries was not transitory. Assets and liabilities received in the combination were measured atcarrying value.

2.2 Separate Financial Statement of the Company Exemption under
FRS 101
The following exemptions from the requirements of IFRS have been applied in the preparation of individual
financial statements of Revolut Group Holdings Ltd, in accordance with FRS 101:
•
•
•
•
•

The requirements of paragraphs 45(b) of IFRS 2 Share-based Payment
The requirements of paragraphs 79(a)(iv) and 111 of IAS 1 Presentation of Financial Statements
The requirements of IAS 7 Statement of Cash FlowsThe requirements of paragraph 17 of IAS 24 Related Party Disclosures
The requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into
between two or more members of a group

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3. Going Concern
The consolidated financial statements are prepared on a going concern basis as the Directors are satisfied that theGroup and the Company have the available resources to continue in business for a period of at least twelve
months from the date of approval of the consolidated financial statements.
The going concern assessment is based upon the latest financial forecast prepared by management. Appropriate
assumptions have been made in the base case forecast in respect to user, revenue growth, and profitability basedon the historical performance of the business and expected changes to the business over the forecast period.
The Directors have also considered as part of the going concern review the severe, but plausible, downside
scenarios used in the Group's detailed ICAAP and ILAAP to stress-test the viability of the business. The scenarios
tested are shared below and were tested before and after actions from Group management. The table includes theprincipal risks being stressed as described in the Risk Management & Compliance section.

Type

Scenario•Interest rates
decrease

MarketInterest rates
increase

Idiosyncratic

Reputational
damagePrincipal risks anduncertainties

Description

Property prices drop materially triggering widespread defaults •leading to reduced credit availability and a sharp drop in global GDP.
•

Strategic risk
Credit risk•

Inflationary pressures ease and central banks respond by cutting•
rates sharply to historical lows for an extended time period.

•

Inflation increases globally. Central banks raise interest rates •(beyond current levels) resulting in a global recession.
••

Unemployment increases
protracted period.

•

This is based on the September 2022 Bank of England Annual
Cyclical Scenario.

•

An operational event occurs resulting in severe reputational damage. •Strategic risk•

Loss of confidence leads many customers to withdraw funds and •stop using Revolut.

Operational risk•

It takes considerable time before trust is restored.

and

GDP

growthstagnates

for

a

•

Interest rate riskin the banking
book (IRRBB)Strategic risk
Credit risk
Market (FX) risk

In all of these scenarios, the Group's capital and liquidity remain above regulatory requirements. This sufficiency
does not require any external financing.
In addition to the stress tests in the Group's comprehensive ICAAP and ILAAP, Revolut has performed a series ofreverse stress tests and examined three additional stress scenarios to evaluate the resilience of its diversified
business model. Unlike the ICAAP and ILAAP tests, the scenarios were assessed solely prior to any managerialinterventions by the Group. The three stress scenarios encompass a situation where there is no change in
Revolut's existing regulatory environment, a cost of living crisis across EEA and UK, and an idiosyncratic downside
scenario. Under all three stress scenarios, Revolut continues to generate profit and maintains sufficient capital andliquidity, requiring no external funding throughout the assessment period. These findings add to the substantial
evidence supporting the Group's ability to continue as a going concern.
The Directors have considered the forecasts and stress tests for the Group and have, at the time of approving
these consolidated financial statements, a reasonable expectation that the Group and the Company have adequate
resources to continue in operation for a period of at least twelve months from the date of approval of theconsolidated financial statements.

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4. Material Accounting Policies
The material accounting policies applied in the preparation of these consolidated and individual financial
statements are set out below. These policies have been consistently applied to all years presented, unlessotherwise stated.

4.1 Adoption of New and Revised Standards(a) New standards, interpretations, and amendments adopted from 1 January 2023
New standards impacting the Group and Company that have been adopted in the consolidated financial
statements for the year ended 31 December 2023 are:
•
•
•
•
•

IFRS 17 Insurance Contracts and amendments to IFRS 17 Insurance Contracts
Disclosure of Accounting Policy — Amendments to IAS 1 and IFRS Practice Statement 2
Definition of Accounting Estimate — Amendments to IAS 8
Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction — Amendments to IAS 12
International Tax Reform Pillar Two Model Rules — Amendments to IAS 12

The adoption of the new standards have not had a significant impact on the consolidated financial statements of
the Group or the Company individual financial statements for the year ended 31 December 2023, nor are they
expected to for future reporting periods or transactions.
(b) New standards, interpretations, and amendments not yet effective
There are a number of standards, amendments to standards, and interpretations which have been issued by the
IASB that are effective in future accounting periods that the Group and Company have decided not to adopt early.
New standards or amendments

Effective for annual periods beginning on or after

Lease Liability in a Sale and Leaseback — Amendments to IFRS 16

1 January 2024

Non-current Liabilities with Covenants — Amendments to IAS 1

1 January 2024

Classification of Liabilities as Current or Non-current —Amendments to IAS 1

1 January 2024

Supplier Finance Arrangements — Amendments to IAS 7 and IFRS 7

1 January 2024

Lack of exchangeability — Amendments to IAS 21

1 January 2025

Management does not expect that the adoption of the standards listed above will have a material impact on theannual consolidated financial statements of the Group or Company in future periods.

4.2 Basis of Consolidation
The Group consolidated financial statements include the financial statements of the Company and all of its
subsidiary undertakings at 31 December 2023 and 31 December 2022 on the basis described in Note 2.
Subsidiaries are all entities over which the Group has control. The Group controls an entity when it is exposed to,or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns
through its power over the entity.
Subsidiaries are fully consolidated from the date on which control is obtained by the Group and are deconsolidated from the date that control ceases. Intercompany transactions, balances, and unrealised gains ontransactions between companies within the Group are eliminated on consolidation. Unrealised losses are also
eliminated unless the transaction provides evidence of an impairment of the transferred asset. Group accounting
policies are consistently applied to all entities and transactions.

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Where a subsidiary has different accounting policies to the Group, adjustments are made to those subsidiaryfinancial statements to apply the Group’s accounting policies when preparing the consolidated financial
statements.
All intragroup transactions, balances, income and expenses are eliminated on consolidation. Adjustments are madeto eliminate the profit or loss arising on transactions with associates and equity-accounted joint ventures to theextent of the Group’s interest in the entity.

4.3 Foreign Currency Translation
Functional and presentation currency
The Group consolidated financial statements are presented in pound sterling. The Company's functional andpresentation currency is the pound sterling.
Transactions and balances
Transactions are recorded at the spot exchange rate between the functional currency and the foreign currency atthe date of the transaction. At each period end, foreign currency monetary items are translated using the closing
rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of thetransaction and non-monetary items measured at fair value are measured using the exchange rate when fair value
was measured.
Foreign exchange gains and losses resulting from the settlement of monetary transactions and from the translation
at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised
in profit or loss. Non-monetary assets and liabilities carried at fair value and denominated in foreign currencies aretranslated at the rates prevailing at the date when the fair value was determined.
Translation
On consolidation, the results of overseas operations are translated into sterling at the average exchange rates forthe applicable period. All assets and liabilities of overseas operations are translated at the exchange rate ruling at
the Consolidated Statement of Financial Position date. Exchange differences arising on translating the opening net
assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive
income.

4.4 Fee Income
The Group recognises revenue according to the principles of IFRS 15 using the five-step model:
1. Identify the contracts with customers
2. Identify the performance obligations in the contract
3. Determine the transaction price
4. Allocate the transaction to the performance obligations in the contract
5. Recognise the revenue when (or as) the entity satisfies the performance obligation
The group derives its revenue from contracts with customers by transferring the following services.
Card and interchange
Card revenue represents transaction-related fees, including interchange fees receivable from the Group’s card
issuing partners, merchant acquiring fees, fair usage fees for cash withdrawals outside of customer plansallowances and top-up fees.
Card and interchange fees are deemed to include a single performance obligation under IFRS 15 Revenue fromContracts with Customers; namely, the completion of a card transaction for a customer and as such, revenue isrecognised at the time of settlement of the transaction.
Foreign exchange
Foreign exchange revenue represents markup fees charged on market exchange rates for weekend transactions

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and less frequently traded currencies, and fair usage fees where customers undertake additional exchangetransaction volumes outside of their plan allowances.
Foreign exchange revenue has a single performance obligation, namely, the exchange of one currency for anotherbetween customer’s currency pockets. Revenue is recognised at the point of this exchange.
WealthWealth comprises revenues from the Group’s cryptocurrency, commodities, trading, and savings products.
The Group acts as an agent on behalf of its customers to buy or sell cryptocurrencies and listed company sharesand the revenue represents any exchange markup or commission charged, and any applicable fair usage fees.
Buying or selling cryptocurrencies or listed company shares has a single performance obligation; namely, theexecution of a customer's order and as a result, revenue is recognised at the time of the transaction.
When entering into commodity contracts with customers, the Group charges a markup on the market exchange
rate for the exchange of e-money. Similarly, when the customer settles the contract and receives e-money, aseparate markup fee is charged to the customers. Revenue is recognised upon the completion of each individualtransaction, i.e. revenue recognised upon entering into the commodity contracts, and upon settlement of thecommodity contract.
While open, the customer contracts are accounted for at fair value through profit or loss within revenue.
The Group hedges its exposure to customer commodity contracts through holding its own investments incommodities. The net amount representing the change in fair value of the contracts with customers and theassociated hedging investments are presented net in the foreign exchange and wealth line within fee income. The
policies and methodologies associated with the determination of fair value are included in Note 30.2.
Subscriptions
Subscription revenue represents monthly and annual subscription fees charged to retail and business customers.
The subscription service has two distinct performance obligations: a card delivery service (which is recognised inother fee income) and an ongoing payment processing service. Revenue for the subscription service is recognisedin the month to which the subscription relates. Where subscription fees are received in advance (namely annual
subscription fees) they are initially recognised as contract liabilities and are recognised as revenue in theConsolidated Statement of Comprehensive Income on a straight-line basis over the period of the subscription.
Any termination fees for existing subscriptions services ending early are recognised upon the termination date.
Other
Other fee income mainly comprises:
•
•
•
•
•

Revenue earned for the delivery of cards, which is recognised on the day the card is delivered to thecustomerFees charged to customers in respect of remittances facilitated at the customer's request, recognised at
the time the transaction is settled
Revenue earned on the sale of lounge passes to customers, recognised at the time of saleFees charged on merchant acquiring transactions, recognised at the time of the transaction
Commission earned on the sale of insurance products to customers, which is recognised at the time of thetransaction

The Group provides embedded insurance products to customers as a component of the overall card value
proposition, as well as certain standalone insurance products. For all types of insurance offerings, the Group acts
as an intermediary between its customers and its insurance partners only and does not accept any significant
insurance risk. Therefore, the Group does not issue any insurance contracts as defined by IFRS 17 Insurance
Contracts.
Remaining performance obligations
IFRS 15 allows the Group to exclude from its remaining performance obligations disclosure any performanceobligations which are part of a contract with an original expected duration of one year or less. Additionally, anyvariable consideration, for which it is probable that a significant reversal in the amount of cumulative revenue

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recognised will occur when the uncertainty associated with the variable consideration is subsequently resolved, is
not subject to the remaining performance obligations disclosure because such variable consideration is notincluded in the transaction price (e.g. investment management fees).

4.5 Fee Expense
Fee expenses primarily relate to fees incurred by the Group in the processing and settlement of transactions,partner-related costs, the costs of providing cards to customers, and the costs of any redress payments made tocustomers who have been the subject of fraudulent transactions.
Processing and settlement fee
These are costs primarily payable to the card schemes of which the Group is a member. Processing and settlementof transaction costs are presented net of rebates received from payment scheme providers for scheme fee costs.
Partner-related costs
These are costs incurred by the Company to purchase services from third-party vendors to include them as anintegral component of the product package.
Cost of cards and card readers
These are the costs incurred by the Group to purchase, personalise, and distribute cards to retail customers andcard readers to business customers. Cards and card readers are initially recognised as inventory until they areshipped to a customer, at which point they are expensed.

4.6 Interest Income and Expense
Interest income
Interest income is recognised using the effective interest rate on: credit cards and loans arrangements enteredinto with customers, treasury investments, and cash and cash equivalents.
The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected
life of the financial instrument to the gross carrying amount of the financial asset (before adjusting for expectedcredit losses).
Interest income from non-credit impaired financial assets is recognised by applying the effective interest rate to
the gross carrying amount of the asset; for credit impaired financial assets, the effective interest rate is applied to
the net carrying amount after deducting the allowance for expected credit losses.
Interest expense
Interest expenses are charged to interest expense in the Consolidated Statement of Comprehensive Income over
the term of the facility using the effective interest method. The effective interest rate is the rate that exactly
discounts estimated future cash payments through the expected life of the financial instrument.
Issue costs are initially recognised as a reduction in the proceeds of the associated instrument, when considered
incremental and directly attributable to the instrument issued.

4.7 Staff Costs
The Group provides a range of benefits to employees, including annual bonus arrangements, paid holiday
arrangements, defined contribution pension plans, and share-based payments.
Short-term benefits
Short-term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expensein the period in which the service is received. A liability is recognised for the amount expected to be paid if theGroup has a present legal or constructive obligation to pay this amount as a result of past service provided by theemployee and the obligation can be estimated reliably.

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Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension planunder which the Group pays fixed contributions into a separate entity. Once the contributions have been paid, theGroup has no further payment obligations.
The contributions are recognised as an expense in the Consolidated Statement of Comprehensive Income when
they fall due. Amounts not paid are shown in accruals as a liability in the Consolidated Statement of Financial
Position. The assets of the plan are held separately from the Group in independently administered funds.
Share-based payments
The Group operates a number of share-based payment schemes. The purpose of these plans is to incentivise andremunerate the Group’s employees. These schemes meet the definition of equity-settled share-based payment
schemes. Estimating fair value for share-based compensation transactions requires determination of the mostappropriate valuation model, which depends on the terms and conditions of the grant. Revolut uses third party
valuation specialists to estimate the fair value of each grant based on the terms of that grant as well as internal
and market data. The Black-Scholes option pricing model was used to value the equity-settled share-based
payment awards as the model is internationally recognised as being appropriate to value employee share schemes
similar to the Unapproved Options Plan (UOP).
The fair value of the awards is recognised as an expense in the Consolidated Statement of Comprehensive Income
over the vesting period with a corresponding increase in the share-based payment reserve in equity. The
cumulative expense at each reporting date is based on the total number of share-based payment awards that are
expected to vest, taking into account the service conditions and any non-market performance conditions such thatthe total cumulative amount recognised as an expense over the vesting period is based on the number of sharebased payment awards that eventually vest. The Group has to estimate the expected yearly percentage of
employees that will stay within the Group at the end of the vesting period of the share-based payment awards inorder to determine the amount of share-based compensation expense charged to the Consolidated Statement ofComprehensive Income.
Where the terms and conditions of share-based payment awards are modified before they vest, to the extent that
there is an increase in the fair value of the share-based payment awards, measured immediately before and after
the modification, this increase is also recognised as an expense in the Consolidated Statement of Comprehensive
Income over the remaining vesting period.
Share-based payments (Company)
On 29 April 2022, the date of the group wide reorganisation, the Company recognised an increase in its sharebased payment reserve in equity with a corresponding reduction in its merger reserve to reflect the Company’s
obligation arising from the replacement of all outstanding unvested share-based payment awards previously
issued by Revolut Ltd and settled in equity instruments of Revolut Ltd, which were replaced on a one-for-one basisby share-based payment awards issued by Revolut Group Holdings Ltd and settled in equity instruments ofRevolut Group Holdings Ltd. All other conditions relating to share-based payment arrangements were unchanged
on replacement. Further details of the group-wide reorganisation are set out in Note 2.1.
Where the Company grants share-based payment awards to employees of subsidiary companies, the relevantcharge is recognised as an increase in cost of investment in subsidiaries with a corresponding increase in theshare-based payment reserve in equity.

4.8 Current and Deferred Taxation
The tax expense/(credit) comprises current and deferred tax. Tax is recognised in profit or loss, except when aexpense or credit relates to an item that is recognised as other comprehensive income or recognised directly inequity, in which case the tax expense or credit is also recognised in other comprehensive income or directly inequity, respectively.
The current income tax credit is calculated on the basis of tax rates and laws that have been enacted or
substantively enacted by the Consolidated Statement of Financial Position date in the countries where theCompany and the Group operate and generate income.

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Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by
the date of the Consolidated Statement of Financial Position, except that:••

The recognition of deferred tax assets is limited to the extent that it is probable that they will be recoveredagainst the reversal of deferred tax liabilities or other future taxable profits; andAny deferred tax balances are reversed if and when all conditions for retaining associated tax allowances
have been met.

Deferred tax balances may be recognised where they relate to timing differences in respect of interests in
subsidiaries or branches, where the Group can control the reversal of the timing differences and such reversal is
not considered probable in the foreseeable future. Deferred tax balances are not recognised in respect ofpermanent differences except in respect of business combinations, when deferred tax is recognised on the
differences between the fair values of assets acquired and the future tax deductions available for them and thedifferences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax
is determined using tax rates and laws that have been enacted or substantively enacted by the Consolidated
Statement of Financial Position date.
Deferred tax assets and liabilities are offset only if certain criteria are met.

4.9 Cash and Cash Equivalents
Cash is represented by cash in hand and deposits with central banks and financial institutions repayable without
penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no morethan three months from the date of acquisition and that are readily convertible to known amounts of cash withinsignificant risk of change in value.
Segregated customer funds related to the provision of specific trading services are excluded from theConsolidated Statement of Financial Position in line with Financial Conduct Authority (FCA) Client Money Rules set
out in the Client Assets Sourcebook Handbook (CASS) CASS 7 Client Money Rules.
In the US, e-money services are provided through partnerships with authorised credit institutions to provide theconsumer protection, and the client funds and the associated customer liability are held on the statement offinancial position of the relevant financial institution, and therefore are not recognised on the Group’s Consolidated
Statement of Financial Position.

4.10 Investments in Subsidiaries
Parent company investments in subsidiary undertakings are initially recognised at cost. Subsequently, investments
in subsidiary undertakings are stated at cost less provision for impairment. An investment in a subsidiary isdeemed to be impaired when its carrying amount is greater than its estimated recoverable amount, and there isevidence to suggest that the impairment occurred subsequent to the initial recognition of the asset in the
consolidated financial statements. All impairments are recognised in the Statement of Comprehensive Income as
they occur. The carrying cost is reviewed at each Statement of Financial Position date by reference to the incomethat is projected to arise there from.
When the Company acquires a Revolut investee entity transferred from another Revolut group company, theCompany recognises as the cost of investment in the investee entity at the transferring entity’s book value (‘carryover basis’) as the investee entity has only moved within the Revolut group. Any difference between theconsideration paid and the capital of the acquiree is reflected in a merger reserve within equity.
Where the Company transfers ownership of a Revolut investee entity to another Revolut group company, thedisposal is treated as an in-substance demerger rather than a loss of control in the scope of IFRS 10 as theinvestee entity has only moved within the Revolut group. Any difference between the book value derecognised,
and the consideration received is reflected in equity by the Company as a distribution made or contribution
received.

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4.11 Investment in Commodities
These investments represent holdings in precious metals that are held to hedge the Group’s exposure to
movements in commodity prices on its customer contracts. As these investments are not held for sale in theordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be
consumed in the production process or in the rendering of services, they are not considered to meet the definitionof inventory.
Accordingly, they are classified as other current asset investments in the Consolidated Statement of Financial
Position, and as they are highly liquid assets, which are frequently traded in an active market, with an observable
market price, the Group’s accounting policy is to account for these investments at fair value through profit or loss.
The fair value gains and losses on investments in commodities are recognised in revenue along with thecorresponding fair value gains and losses on the associated customer liability (see Note 4.17).

4.12 Trade and Other Receivables and Payables
Collateral where cash collateral is given, to mitigate the risk inherent in amounts due from the Group, it is included
as an asset in trade and other receivables. Cash collateral includes amounts held with our partners on a long-termbasis to support customers' transaction volumes.
Card schemes
Card schemes include rebates due to the Group arising from credit card scheme and processing fees.
Settlement receivables and payables
Settlement receivables and payables include balances arising from timing differences in the Group’s settlement
process between the cash settlement of a transaction and the recognition of the associated liability (for example,
customer liabilities e-money in issue). When customers fund their e-money account using their bank account, or acredit or debit card, or sell stocks or cryptocurrencies via our trading and cryptocurrency exchange partners, there
is a clearing period before the cash is received or settled. This period is usually within five business days.
As the Group acts as an agent on behalf of its customers on a custodian basis to buy or sell cryptocurrencies andlisted company shares, the Group does not recognise positions in cryptocurrencies or shares on the Consolidated
Statement of Financial Position.
Trade receivables and payables
Trade receivables are amounts owed to the Group from business partners following the provision of services on
credit. Trade payables are any unsettled expenses billed to the Group from vendors, suppliers, or other third
parties for services provided.
Negative customer liabilities
Negative customer liabilities represent customers with overdrawn funds net of impairment loss allowances for
expected credit losses. While Revolut does not currently offer overdraft facilities, there are several scenarios thatcan lead to the creation of a negative customer liability, such as offline transactions, chargebacks, subscription fee
charges and fraudulent customer activity. In these scenarios the previously recognised customer liability is
extinguished and an asset is recognised.

4.13 Inventories
Inventories are stocks of cards for new and existing users as well as card readers which are held at the Group’s
fulfilment partner warehouses. Inventories are stated at the lower of cost (adjusted for loss of service potential if
applicable) and net realisable value ('NRV' or replacement cost). Inventories are recognised as an expense when
the card or card reader is shipped to a customer.
Cost is determined using the weighted average cost to produce, including taxes and duties and transport andhandling directly attributable to bringing the inventory to its present location and condition.

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At each Consolidated Statement of Financial Position date, inventories are assessed for impairment. If inventory is
impaired, the carrying amount is reduced to its selling price less costs to complete and sell and the impairment loss
is recognised immediately in profit or loss. Where a reversal of the impairment charge is required the impairment
charge is reversed, up to the original impairment loss, and is recognised as a credit in profit or loss.

4.14 Property and Equipment
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any
accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing theasset to the location and condition necessary for it to be capable of operating in the manner intended bymanagement.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful
lives, using the straight-line method.
Depreciation is provided on the following basis:
Fixtures and fittings
Office equipment
Computer equipment- 10% straight line
- 25% straight line
- 33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed annually, and adjusted
prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and arerecognised within administrative expenses in the Consolidated Statement of Comprehensive Income.

4.15 Intangible Assets
Intangible assets acquired separately — computer software
Computer software is stated at cost less accumulated amortisation and accumulated impairment losses. Computer
software is amortised on a straight-line basis over its estimated useful life, which is assessed to be three years.
Amortisation is recognised within administrative expenses in the Consolidated Statement of Comprehensive
Income.
Intangible assets acquired in a business combination
Intangible assets acquired in a business combination and recognised separately from goodwill are recognised
initially at their fair value at the acquisition date. Subsequent to initial recognition, intangible assets acquired in abusiness combination are reported at cost less accumulated amortisation and accumulated impairment losses, on
the same basis as intangible assets that are acquired separately. Amortisation is recognised within administrative
expenses in the Consolidated Statement of Comprehensive Income.
Derecognition of intangible asset
An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use ordisposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between
the net disposal proceeds and the carrying amount of the asset, are recognised in profit or loss when the asset isderecognised.
Goodwill
Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred andthe amount recognised for non-controlling interests and any previous interest held over the net identifiable
assets acquired and liabilities assumed).
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill isperceived to have an indefinite life and is not amortised. For the purpose of impairment testing, goodwill acquired
in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units thatare expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are

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assigned to those units. Where goodwill has been allocated to a cash-generating unit and part of the operation
within that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying
amount of the operation when determining the gain or loss on disposal. Goodwill disposed in these circumstancesis measured based on the relative values of the disposed operation and the portion of the cash-generating unit
retained.

4.16 Impairment of Non-Financial Assets
At each date of a Consolidated Statement of Financial Position, non-financial assets not carried at fair value areassessed to determine whether there is an indication that the asset (or asset’s cash-generating unit) may be
impaired. If there is such an indication, the recoverable amount of the asset (or asset’s cash-generating unit) is
compared to the carrying amount of the asset (or asset’s cash-generating unit).
The recoverable amount of the asset (or asset’s cash-generating unit) is the higher of the fair value less costs tosell and value in use. Value in use is defined as the present value of the future cash flows before interest and tax
obtainable as a result of the asset’s (or asset’s cash-generating unit’s) continued use. These cash flows are
discounted using a pre-tax discount rate that represents the current market risk free rate and the risks inherent in
the asset.
If the recoverable amount of the asset (or asset’s cash-generating unit) is estimated to be lower than the carrying
amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognised in profit orloss, unless the asset has been revalued when the amount is recognised in other comprehensive income to theextent of any previously recognised revaluation. Thereafter, any excess is recognised in profit or loss.
If an impairment loss is subsequently reversed, the carrying amount of the asset (or asset’s cash-generating unit)
is increased to the revised estimate of its recoverable amount, but only to the extent that the revised carrying
amount does not exceed the carrying amount that would have been determined (net of depreciation oramortisation) had no impairment loss been recognised in prior periods. A reversal of an impairment loss isrecognised in profit or loss.

4.17 Customer Liabilities
E-money in issue
The Group recognises a liability upon the issue of electronic money to its customers equal to the amount ofelectronic money that has been issued.
Customer liabilities in respect of deposits
The Group recognises a liability to customers when a customer makes a deposit. This liability is initially recognised
at fair value and subsequently measured at amortised cost using the effective interest rate method.
Commodities
Customer liabilities in respect of contracts relating to the commodities offering are financial liabilities with anembedded derivative. The Group’s accounting policy is not to separate the embedded derivative and to measure
the entire instrument at fair value through profit or loss.

4.18 Provisions and Contingencies
Provisions
Provisions are made where an event has taken place that gives rise for the Group to a legal or constructive
obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be madeof the amount of the obligation.
Provisions are charged as an expense in the Consolidated Statement of Comprehensive Income in the year that
the Group becomes aware of the obligation and are measured at the present value of the expenditures expected
to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time

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value of money and the risks specific to the obligation. The increase in the provision due to passage of time isrecognised as an interest expense.
When payments are eventually made, they are recognised as a reduction in the provision carried in theConsolidated Statement of Financial Position.
Contingencies
Contingent liabilities are not recognised, except those acquired in a business combination. Contingent liabilities
arise as a result of past events when (i) it is not probable that there will be an outflow of resources or that theamount cannot be reliably measured reliably at the reporting date or (ii) when the existence will be confirmed by
the occurrence or non-occurrence of uncertain future events not wholly within the group’s control.
Contingent liabilities are disclosed in the consolidated financial statements unless the probability of an outflow ofresources is remote.
Contingent assets are not recognised. Where an inflow of economic benefits from a contingent asset is probable, it
is disclosed in the notes to the consolidated financial statements.

4.19 Leases
The Group assesses at contract inception whether a contract is, or contains, a lease; that is, if the contract
conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At
31 December 2023 and 2022 the Group is a lessee in its lease arrangements, and is not a lessor.
The Group applies a single recognition and measurement approach for all lessee leases, except for short-termleases (defined as leases with a lease term of twelve months or less) and leases of low-value assets. The Group
recognises lease liabilities representing obligations to make lease payments and right-of-use assets representing
the right to use the underlying assets.
Right-of-use assets
The Group recognises right-of-use assets at the commencement date of the lease (i.e. the date the underlying
asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation andimpairment losses and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes
the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before thecommencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line
basis over the shorter of the lease term and the estimated useful lives of the assets. If ownership of the leased
asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase option,
depreciation is calculated using the estimated useful life of the asset, otherwise the right-of-use asset is amortisedover the duration of the lease agreement. Depreciation starts at the commencement date of the lease.
The right-of-use assets are also subject to impairment. Refer to the accounting policies in Note 4.16, Impairment of
non-financial assets.
The right-of-use assets are presented along with property and equipment in the Consolidated Statement of
Financial Position.
Lease liabilities
At the commencement date of the lease, the Group recognises lease liabilities measured at the present value oflease payments to be made over the lease term. The lease payments include fixed payments (including insubstance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index
or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include theexercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties forterminating the lease, if the lease term reflects the Group exercising the option to terminate.
Variable rents that do not depend on an index or rate are not included in the measurement of the lease liability andthe right-of-use asset. The related payments are recognised as an expense in the period in which the event orcondition that triggers those payments occurs and are included in the line administrative expense in theConsolidated Statement of Comprehensive Income (unless they are incurred to produce inventories, whereby they

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will be included as part of fee expense).
In calculating the present value of lease payments, the Group uses the rate implicit in the lease if it is readily
determinable. However, if the rate implicit in the lease is not readily determinable, the incremental borrowing rate(IBR) at the lease commencement date for the local subsidiary is used. If the IBR of the local subsidiary is notreadily determinable, the IBR of the Group is used.
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest andreduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a
modification, a change in the lease term, a change in the lease payments (e.g. changes to future payments
resulting from a change in an index or rate used to determine such lease payments) or a change in the assessmentof an option to purchase the underlying asset.
As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for
any lease and associated non-lease components as a single arrangement. The Group has elected to apply thispractical expedient and will not separate lease and non-lease components.
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to those leases that have a lease term of twelve
months or less from the commencement date and do not contain a purchase option. It also applies the lease of
low-value assets recognition exemption to leases that are considered to be low value. Lease payments on shortterm leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term
unless another systematic basis is more representative of the time pattern in which economic benefits from theleased assets are consumed.

4.20 Share Capital
Ordinary shares are classified as equity. Incremental costs that are directly attributable to the issue of new
ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.
Shares held by trusts
Shares in the Company that are held by the Employee Benefit Trust (EBT) are treated as ‘own shares’ or treasury
shares. Shares are held and purchased by the EBT for delivery to employees under the employee incentive plans.
Purchased shares are recognised as a deduction from equity at the price paid for them.

4.21 Reserves
The Group and Company reserves are as follows:•••

Merger reserve arising from the reorganisation of the Group
Other reserves represent the revaluation of foreign currency at the Consolidated Statement of Financial
Position date, cumulative share-based payments charges, capital recognised upon corporate restructuring
activities, unrealised gains and losses on financial instruments measured at fair value through othercomprehensive income, the cost of shares held for awards granted to employees, and the impact of taxes
for any of the above items
Retained earnings or accumulated deficit, as applicable, represent cumulative profits or losses, net of
dividends paid to shareholders, and any other adjustments

4.22 Financial Instruments
Recognition of financial assets
Financial assets are recognised when the Group enters into a contract that results in current or future economic
value to the Group. Financial assets are initially measured at fair value and are accounted for on a trade date basis.
Classification and measurement of financial assets
The Group classifies its financial assets at either amortised cost, fair value through profit or loss or fair value
through other comprehensive income.

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In order to determine the appropriate classification of non-derivative financial assets, the Group assesses theobjective of the business model in which the financial asset is held, and for those measured at amortised cost
whether the contractual cash flows of the financial asset are solely payments of principal and interest (SPPI).
The Group assesses its business models at a portfolio level based on its objective for the relevant portfolio, howperformance of the portfolio is measured and reported, how management are compensated and the frequency andreasons for asset sales from the portfolio. Financial assets are reclassified when, and only when, the Groupchanges its business model for managing the assets.
Financial assets at amortised cost
Financial assets in portfolios where the business model is to hold the assets to collect the contractual cash flows,
and where those cash flows represent solely payments of principal and interest, are measured at amortised cost.
Financial assets measured at amortised cost are initially recognised at fair value plus transaction costs that are
directly attributable to their acquisition or issue (with the exception of trade and other receivables with an
expected term of less than one year where the Group applies the practical expedient to recognise these amounts
at transaction price), and are subsequently measured at amortised cost using the effective interest rate method,less expected credit loss allowances as stipulated in IFRS 9 Financial Instruments.
Financial assets at amortised cost include cash and cash equivalents, loans and advances to customers, trade andother receivables, settlement receivables and amounts recoverable under long term contracts.
Assessment whether contractual cash flows are solely payments of principal and interest
For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset on initialrecognition. ‘Interest’ is defined as consideration for the time value of money and for the credit risk associated withthe principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g.
liquidity risk and administrative costs), as well as a profit margin. In assessing whether the contractual cash flows
are solely payments of principal and interest, the Group considers the contractual terms of the instrument. This
includes assessing whether the financial asset contains a contractual term that could change the timing or amountof contractual cash flows such that it would not meet this condition. In making this assessment, the Groupconsiders:••••Contingent events that would change the amount or timing of cash flows;
Terms that may adjust the contractual coupon rate, including variable rate features;
Prepayment and extension features; andTerms that limit the Group’s claim to cash flows from specified assets (e.g. non-recourse features).

Financial assets at fair value through other comprehensive income
Financial assets in portfolios where the business model is to hold the assets to collect the contractual cash flow or
to be sold and where those cash flows represent solely payments of principal and interest.
Financial assets measured at fair value through other comprehensive income are initially recognised at fair value
plus transaction costs that are directly attributable to their acquisition and are subsequently measured at fairvalue.
Unrealised gains or losses, other than loss allowances for expected credit losses, arising from financial
investments measured at fair value through other comprehensive income are reported in equity (in the financial
investment reserve) and in other comprehensive income in the Consolidated Statement of Comprehensive Income,until such investments are sold, collected or otherwise disposed of.
On maturity or disposal of an investment, the accumulated unrealised gain or loss included in equity is recycled to
the Consolidated Statement of Comprehensive Income for the period. Gains and losses on disposal are determinedusing the fair value of the investment at the date of derecognition.
Financial assets at fair value through profit or loss
Financial assets that do not meet the criteria to be measured at amortised cost or fair value through othercomprehensive income are measured at fair value, with changes in fair value recognised within other income inprofit or loss in the Consolidated Statement of Comprehensive Income. These financial instruments include

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119derivative financial instruments.
Undrawn commitments
Undrawn commitments are commitments under which, over the duration of the commitment, the Group is required
to provide a loan with pre-specified terms to the customer. These commitments generate exposure to future credit
losses. The nominal contractual value of undrawn commitments are not recorded in the Consolidated Statement of
Financial Position. The nominal values of these instruments together with the corresponding expected credit losses
are disclosed in Note 31.1.
Derecognition
Financial assets are derecognised when the contractual right to receive cash flows has expired or when the Group
has transferred its contractual right to receive the cash flows from the assets and either (i) substantially all of therisks and rewards of ownership have been transferred; or (ii) the Group has neither retained nor transferred
substantially all of the risks and rewards but has transferred control.
Impairment of financial assets
In accordance with IFRS 9, the Group recognises impairment loss allowances for expected credit losses (ECL) on
financial assets that are measured at amortised cost or fair value through other comprehensive income. These
include loans and advances to customers, trade and other receivables, settlement receivables, treasury
investments and amounts recoverable under long-term contracts.
Changes to the IFRS 9 model for impairment of financial assets are approved by the Group Credit Risk Committee
or Group Model Risk Committee depending on the nature of the change. Material changes are escalated to theGroup Asset and Liability Committee and to the Board where applicable.
There are three approaches to recognising ECL provisions under IFRS 9:•••

The simplified approach — which applies on a mandatory basis to trade receivables and contract assetsthat do not contain a significant financing component. It may also be applied on an optional basis to tradereceivables and contract assets that do contain a significant financing component or to lease receivables;
The credit-adjusted approach — which applies to assets that are credit impaired on initial recognition (i.e.
origination or acquisition); andThe general approach — which applies to all loans and receivables not eligible for the above two
approaches.

All of the Group’s trade receivables are considered to qualify for the simplified approach (as they have terms ofless than one year and therefore do not contain a significant financing component) and therefore on initialrecognition an impairment provision is required for expected credit losses arising from default events expected tooccur over the life of the financial asset ('lifetime ECL'). In addition, negative customer liabilities are akin to tradereceivables or simple assets against customers that do not contain a significant financing component andtherefore qualify for the simplified approach.
The Group currently does not have any purchased or originated credit impaired financial assets.
For loans and advances to customers, treasury investments, amounts recoverable on long-term contracts, andamounts due from other Group companies in the Company financial statements, the general approach toimpairment is applied. This follows a three-stage model and requires these financial assets to be assigned to oneof the following three stages:•••

Stage 1 — Financial assets which have not experienced a significant increase in credit risk (SICR) sinceinitial recognition, against which an expected credit loss provision is required for expected credit losses
resulting from default events expected within the next twelve months (a '12-month ECL') is required on
initial recognition — when a financial asset is first recognised it is assigned to Stage 1;
Stage 2 — Financial assets which have experienced a SICR event since initial recognition, against which alifetime ECL provision is required; andStage 3 — Financial assets which are credit impaired, for which objective evidence of an impairment
exists, and which also requires a lifetime ECL provision.

The staging is aligned with the management of credit risk.

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Interest income on assets in Stages 1 and 2 is recognised using the effective interest rate method on the grosscarrying value of the assets. For assets in Stage 3, interest income is recognised using the effective interest rate
method on the carrying value of the assets net of ECL provision.
Significant increase in credit risk
Stage 2 includes financial assets that have had a significant increase in credit risk since initial recognition, but that
do not have objective evidence of being credit impaired.
For retail credit risks, Stage 2 includes assets for which any of the following SICR indicators are present at thereporting date, that were not present at initial recognition:
1.
2.
3.
4.
5.

Obligors on watchlist status;
Obligors on forborne performing status (i.e. forbearance with material concession);
Obligors not eligible for forbearance measures based on their risk assessment;
Facilities more than 30 days past due; andFacilities with a significant increase in lifetime point-in-time forward-looking probability of default (PD)compared to initial recognition. This occurs if:(a) The PD has increased by more than 2.5 times (this would be equivalent to downgrade byapproximately two or more notches according to Revolut’s internal rating scale).
(b) The PD has increased by more than 0.5% in absolute terms (to avoid classification as Stage 2 ofobligors still being with low risk despite a relative PD change exceeding 2.5 times).

SICR indicators in points 1 to 3 above are evaluated at obligor level, while the ones in points 4 and 5 are evaluatedat individual financial instrument level.
For wholesale credit risks, a low-risk exemption applies, such that all investment grade obligors will be allocated toStage 1. In line with the Group Internal Ratings Procedures, Revolut relies on the ratings of external rating agencies
and will assign each externally rated counterparty a rating per the approach noted in the Internal Rating
Procedures. Revolut doesn't apply low credit risk exemption for its retail exposures at the moment.
Stage 2 assets will include non-investment grade exposures which have experienced a downgrade by 2 or morenotches based Revolut’s internal rating scale at the reporting date compared to initial recognition and this results in
a PD increase of more than 0.5% in absolute terms.
Transfers from Stage 2 back to Stage 1 will be performed when none of SICR indicators are present as of thereporting date. Any changes in the criteria used to determine SICR follow the same approval pathway described forthe overall IFRS 9 model.
Definition of default and credit-impaired asset
Assets which are past due by more than 90 days, or where the Group considers it unlikely that the obligor will beable to pay its obligations, are considered to be in default for IFRS 9. Events that trigger inclusion in default
include:••••The customer filing for bankruptcy or Individual Voluntary Agreement.
The customer is deceased.
The overdraft or loan has been renegotiated because the customer’s condition has deteriorated. As an
example, this includes cases where a specific repayment plan has been agreed and interest has beenfrozen.
The customer has requested ‘breathing space’ (i.e. when the Group agrees to give the customer sometime in which they won’t be contacted about their arrears at all and fees or interest is frozen).

Default status will be applied at an obligor level such that where any one facility is in default, all facilities of thatobligor will be considered in default.
There has been no difference between the accounting definition of default, the definition used for internal credit
risk management purposes and the regulatory definition of default. In addition, the definition of default aligns to
the definition of credit impaired assets.

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Calculation of expected credit losses
The expected credit loss provision is calculated using the three following inputs:•••

Probability of default (PD) — the likelihood of default within a given time frame, either twelve months (forStage 1 assets) or the lifetime of a financial asset (for Stages 2 and 3 assets). PD is determined withreference to internal and external scorecards based on customer characteristics at origination and aresubsequently measured based on client behaviour;
Loss given default (LGD) — the net loss in the event of a default; andExpected balance at default (EAD) — the gross value of loss in the event of a default. EAD is determinedas the gross carrying amount for drawn balances and a fraction of the available credit based on theutilisation of credit lines for undrawn balances.

The expected credit loss provision on the outstanding financial assets at the date of the Consolidated Statementof Financial Position is calculated by multiplying the PD (dependent on the stage of the asset) by the LGD and EAD,
taking into account the contractual period of credit risk exposure from initial recognition in the case of loans. For
credit cards, where the exposure to credit risk is not limited to the contractual period, the expected life iscalculated based on the estimated life of the loan and undrawn facility.
ECL models incorporate forward-looking information via macroeconomic forecasts and associated overlay factors
produced in accordance with the Group ECL methodology. The process is performed separately for each countryof lending. Every quarter, source macroeconomic forecasts are extracted from multiple providers including but notlimited to the Bank of England, the Office for National Statistics, and the European Central Bank. Forecasts areaggregated in three scenarios:•••

Baseline
Pessimistic
Optimistic

Each scenario is assigned a weight in accordance with the relative probability of future economic condition
development. Weight assignments are selected by experts with reference to the relative severity of the source
forecasts and are approved by the Group Credit Risk Committee prior to incorporation into the final ECL
calculation.
The forward-looking macroeconomic variables considered in each scenario include:••••

Real GDP
Inflation (accounted in GDP by using real output instead of nominal)
Unemployment
Interest rates

The scenarios for each variable are compiled into a macroeconomic overlay model which translates initial PD
estimates into scenario-specific estimates, which are used to calculate scenario-specific ECL outputs. The
scenario-specific ECL outputs are aggregated using the scenario weights to produce a final ECL estimate for eachfinancial asset.
The expected life assumption used in the computation of ECL is selected based on the maturity of the financial
asset. Financial assets without maturities are assigned an expected life assumption based on the the contractual
term of the asset or the maximum period over which the entity is exposed to credit risk.
Details on the ECL calculation approach are contained in jurisdiction specific methodologies for wholesale andretail credit exposures.
Modification of contractual terms
Where the contractual terms of financial assets are renegotiated or modified and the financial asset was notderecognised, its gross carrying value is adjusted to reflect the new contractual cash flows discounted at theoriginal effective interest rate with a gain or loss recognised in the Consolidated Statement of Comprehensive
Income.

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Write-offs
Financial assets will be written off, either partially or in full, against the related allowance once there is no realistic
prospect of recovery and the amount of the loss has been determined. Subsequent recovery of amounts written
off are recognised against the amount of impairment losses recognised in the Consolidated Statement ofComprehensive Income.
Write-off policy for retail credit products
Revolut will determine for each type of portfolio suitable maximum periods for full provisioning and write-off.
Revolut will assess the recoverability of exposures classified as non-performing due to registering arrears for a
prolonged length of time. If, following this assessment, an exposure or part of an exposure is deemed as
unrecoverable, it will be written off in a timely manner.
For exposures under insolvency or bankruptcy procedures, due to low collateralisation of the exposures, legal
expenses often absorb a significant portion of the proceeds from the bankruptcy procedure and therefore
estimated recoveries are expected to be very low.
A partial write-off may be warranted where there is reasonable financial evidence on the credit file to demonstrate
an inability on the borrower’s behalf to repay the full amount of the monies owing (i.e. a significant level of debt
overhang which cannot be reasonably demonstrated to be recoverable following implementation of a forbearance
or settlement treatment).
Write-off for negative customer liabilities
Negative customer liabilities are written off for:• Terminated users — at the point of termination;• Fraudulent user activity — at the point of completion of internal investigation; or• Balances older than 365 days
Link between risk appetite/credit risk management and ECL
As part of the risk management strategy, risk indicators based on expected credit losses (ECL) are monitored
relative to the pre-approved risk appetite, such as the stressed expected credit loss for the total credit portfolio.
Recognition and measurement of financial liabilities
Financial liabilities that are not measured at fair value through profit or loss are classified at amortised cost.
Financial liabilities designated at amortised cost are initially measured at fair value (net of issue costs in the case ofloans and borrowings) and subsequently measured at their amortised cost using the effective interest rate method.
They include loans and borrowings, trade and other payables, and customer liabilities for e-money in issue andcustomer liabilities in respect of deposits.
Non-derivative financial liabilities that are measured at fair value through profit or loss are measured at fair value
with changes in fair value recognised in the Consolidated Statement of Comprehensive Income. These financial
instruments include financial liabilities initially designated as fair value through profit or loss to avoid an accounting
mismatch including customer liabilities in respect of commodities, where the associated assets are accounted forat fair value.
Derivatives, including interest rate swaps, foreign currency swaps, and foreign currency forward contracts, aremeasured at fair value through profit or loss. Derivatives are initially recognised at fair value on the date aderivative contract is entered into and are subsequently re-measured at their fair value.
Interest expense is charged to the Consolidated Statement of Comprehensive Income using the effective interest
rate method.
The total statement of comprehensive income impact of foreign currency swaps can be split into two components• The contractual gain (net yield on foreign exchange derivatives)
This represents the return on settlement of the far leg of the foreign currency swaps due to the difference
between the prevailing spot rate and the forward rate at inception (i.e. the 'contractual gain').
• The mark to market fair value movement (impact of foreign exchange rates)
This represents the adjustment of the valuation of the foreign exchange swaps due to movements in theforeign exchange market conditions (i.e. change in foreign exchange rates).

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The contractual gain from the foreign currency swaps (i.e. net yield on foreign exchange derivatives) are presented
separately under other income in the Statement of Comprehensive Income, on the basis that the contractual gain
represents earned yield on assets which are intrinsic to Revolut's business. It represents a net increase in cash
upon settlement of the swap and therefore constitutes an operating cash flow.
The fair value movement on foreign currency swaps are recognised under Administrative expenses in theStatement of Comprehensive Income, along with unrealised and realised foreign currency gains and losses.
Financial liabilities are derecognised when the Group has either discharged the liability through settlement, or
where it has been legally released from primary responsibility for the liability by process of law or by the creditor.
Reclassification of financial assets and liabilities
The Group does not reclassify its financial assets subsequent to their initial recognition, apart from the exceptional
circumstances in which the Group acquires, disposes of or terminates a business line.
Offsetting of financial instruments
Financial assets and liabilities are offset, and the net amount is reported in the Statement of Financial Position
when, and only when, there is a legally enforceable right to offset the recognised amounts with an intention tosettle on a net basis, or alternatively to realise the asset and settle the corresponding liability simultaneously.
Income and expenses are presented on a net basis only when permitted by the accounting standards.
Hedge accounting
The Group elected, as a policy choice permitted under IFRS 9, to continue to apply the requirements of IAS 39
Financial Instruments: Recognition and Measurement for the macro fair value hedges for interest rate risk.
Where derivatives are held for risk management purposes, and when transactions meet the required criteria for
documentation and hedge effectiveness, the Group applies fair value hedge accounting, or hedging of a net
investment in a foreign operation, as appropriate to the risks being hedged.
At inception, the Group formally documents how the hedging relationship meets the hedge accounting criteria. It
also records the economic relationship between the hedged item and the hedging instrument, including the natureof the risk, the risk management objective and strategy for undertaking the hedge and the method that will be
used to assess the effectiveness of the hedging relationship at inception and on an ongoing basis.
In order to qualify for hedge accounting, a hedging relationship must be expected to be highly effective on aprospective basis and it needs to be demonstrated that it was highly effective in the previous designated period(i.e. one month). A hedge is considered to be highly effective if the changes in fair value or cash flows attributable
to the hedged risk are expected to be offset by the hedging instrument in a range of 80% to 125%. It is also
necessary to assess, retrospectively, whether the hedge was highly effective over the previous one-month period.
The hedge accounting documentation includes the method and results of the hedge effectiveness assessments.
Fair value hedges
The Group currently only applies fair value hedging for interest rate risk. For designated and qualifying fair value
hedges, the cumulative change in the fair value of a hedging derivative is recognised immediately in theConsolidated Statement of Comprehensive Income as the net gain on changes in the fair value on hedging
derivatives and hedged items, within other income. In addition, the cumulative change in the fair value of thehedged item attributable to the hedged risk is recognised in the same line item, and for hedged items that would
otherwise be measured at cost or amortised cost, the carrying amount of the hedged item is adjusted accordingly.
In these hedging relationships, the main sources of ineffectiveness are:•••the effect of the counterparty and the Group’s own credit risk on the fair value of the interest rate swaps,
which is not reflected in the fair value of the hedged item attributable to the change in interest rates;
differences in the magnitude or timing of future expected cash flows in the hedged item and hedging
instrument; andthe ongoing amortisation of any existing balance sheet mismatch between the fair value of the hedged
item and the hedging instrument.

If hedge relationships no longer meet the criteria for hedge accounting, hedge accounting is discontinued. For fairvalue hedges of interest rate risk, the fair value adjustment to the hedged item is amortised to profit or loss over

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the period to maturity of the previously designated hedge relationship using the effective interest method. If thehedged item is sold or repaid, the unamortised fair value adjustment is recognised immediately in profit or loss.
Hedges of net investment in foreign operation
The Group’s net investments in foreign operations, including monetary items accounted for as part of the net
investment, were hedged for foreign currency risks using derivatives until the maturity of the hedging instruments
in May 2022.
The effective portion of the gain or loss on the hedging instrument is being recognised directly in othercomprehensive income and the ineffective portion being recognised immediately in profit or loss. The cumulative
gain or loss recognised in other comprehensive income is recognised in profit or loss on the disposal or partial
disposal of the foreign operation, or other reductions in the Group’s investment in the operation.

5. Judgements in Applying Accounting Policies and Key
Sources of Estimation Uncertainty
The financial performance of Revolut reflects the accounting policies and estimates selected in the preparation offinancial results. Judgements in applying accounting policies are continually evaluated and are based on historicalexperience and other factors, including expectations of future events that are believed to be reasonable under thecircumstances.
In addition, the Group develops accounting estimates to achieve the objectives set out by its selected accounting
policies. An accounting estimate is a monetary amounts in financial statements that are subject to measurement
uncertainty. Any changes in accounting estimates result from new information or development and are notcorrections of errors or changes in principles. Such accounting estimates may, inherently, be based on a highdegree of uncertainty. Accordingly, the Group's reliance on accounting estimates may result in a significant risk ofa material adjustment to the carrying amounts of assets and liabilities within the next financial year.

5.1 Judgement in Applying Accounting Policies
Impairment losses on financial assets
In determining the expected credit losses, the Group makes the following judgments:•

Significant increase in credit risk (SICR)
In assessing whether a significant increase in credit risk (SICR) has occurred for an exposure since initialrecognition, the Group considers both quantitative and qualitative information and analysis. In doing so,
the Group makes judgements about the appropriate indicators used as SICR triggers. The triggers that theGroup has determined as appropriate include the 30-day backstop, movement in PD and other qualitative
factors, such as moving a customer/facility to the watch list, or the account becoming forborne.

•

Multiple economic scenarios
The Group in its measurement of ECLs makes judgements about the type and number of macroeconomic
scenarios in order to reflect the Group’s exposure to credit risk. The scenarios are derived frommacroeconomic forecasts from multiple external providers which are then aggregated to the three
scenarios (i.e. Baseline, Optimistic, and Pessimistic).

•

Development of ECL models
Judgement exists in the development of ECL models. This includes the segmentation of products, theformulas and choice of inputs, for example which inputs are relevant for the particular exposures inparticular regions.

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•

Segmentation
Judgement exists on the segmentation of financial assets when their ECL is assessed on a collective
basis.

The Group regularly review its models in the context of actual loss experience and adjust when necessary. These
post model performance adjustments capture adjustments for known weaknesses in the impairment models or
where models operate outside the boundaries to which they were calibrated. Further details about the Group’s
impairment losses on financial assets are given in Note 31.1.
Hedge accounting
The Group’s hedge accounting policies include an element of judgement and estimation, in particular, in respect ofthe projected portfolio repricing time bucket of the underlying non-maturing core customer liabilities in respect ofdeposits in the macro fair value hedges.
Core deposits within the identified portfolios are allocated to repricing time buckets based on expected, rather
than contractual, repricing dates. The repricing dates are estimated at the inception of the hedge and throughout
the term of the hedge, based on historical experience and other available information, including information and
expectations regarding interest rates, withdrawal rates, and the interaction between them.
The estimates are reviewed periodically and updated in the light of experience, and it will influence the availability
and timing of suitable hedged items, with an impact on the effectiveness of the hedge relationships.
Additionally, for the portfolio fair value hedges of the Group’s core deposits portfolio, the Group follows a dynamic
hedging strategy, and the period for which the Group designates these hedges is only one month. At the end of
every month, the Group voluntarily de-designates the hedge relationships and re-designates them as new hedges.
The one-month repricing time period duration is deemed to be most appropriate in order to minimise theineffectiveness and accommodate new exposures. Further details about the Group’s hedge accounting aredisclosed in Note 30.5.

5.2 Key Sources of Estimation Uncertainty
Impairment losses on financial assets
The measurement of impairment losses under IFRS 9 across all categories of financial assets in scope requires
assumptions, in particular, the estimation of the amount and timing of future cash flows and collateral values when
determining impairment losses and the assessment of a significant increase in credit risk.
These estimates are driven by a number of factors, changes in which can result in different levels of allowances.
The Group’s ECL calculations are outputs of complex models with a number of underlying assumptions regarding
the choice of variable inputs and their interdependencies. Elements of the ECL calculation that involve assumptions
and estimate uncertainty include:• The Group's internal credit grading model, which assigns PD with reference to internal and externalscorecards based on customer characteristics at origination and are subsequently measured based onclient behaviour;• The Group’s criteria for assessing if there has been a significant increase in credit risk (SICR);• Development of ECL models, including the various formulas and the choice of specific economic inputs
included in the assessment, such as unemployment levels and GDP growth rate;• Determination of associations between macroeconomic scenarios and economic inputs, and the resulting
effect on PD; and• Selection of forward-looking macroeconomic scenarios and their probability weighting assigned to themultiple economic scenarios in order to reflect the exposure to credit risk.
Recognition of deferred tax asset
Where carried forward tax losses can be utilised against future taxable profits, a deferred tax asset should only berecognised to the extent that it is probable that there will be sufficient taxable profits against which it can be

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126recovered. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is nolonger probable that the related tax benefit will be realised; such reductions are reversed when the probability of
future taxable profits improves.
Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that it has
become probable that future taxable profits will be available against which they can be used.
Management regularly evaluates whether deferred tax assets can be realised. In evaluating whether deferred tax
assets can be realised, management considers projected future taxable income and the scheduled reversal ofdeferred tax liabilities. This evaluation requires significant management judgement, primarily with respect toprojected taxable income. The future taxable income can never be predicted with certainty. It is derived frombudgets and strategic business plans but is dependent on numerous factors, some of which are beyond
management’s control. Substantial adverse variance of actual results from estimated future taxable profits, orchanges in our estimate of future taxable profits, could lead to changes in deferred tax assets being realisable, or
considered realisable, and would require a corresponding adjustment to the amount of the deferred tax asset thatis recognised.
Deferred tax assets of £58.6 million were recognised at 31 December 2023 in the UK tax group (2022: £93.7
million).
The Group has considered their carrying value at 31 December 2023 and concluded that, based on management’s
estimates, sufficient taxable profits will be generated in future years to recover recognised deferred tax assets.
These estimates are based on forecast performance and take into account the continued profitability of theexisting business as well as its continued growth in 2024 and beyond. Management expects to utilise all deferred
tax assets in respect of accumulated trading tax losses before the end of 2024.
Deferred tax assets of £9.1 million (2022: £13.9 million) have not been recognised in respect of tax losses andother temporary differences where the availability of future taxable profits, for some entities within the Group, isuncertain. Further details about the Group’s deferred tax assets are given in Note 12.
Share-based payments
The estimate of share-based payments costs requires management to select an appropriate valuation model andmake appropriate estimations of share forfeiture rates. Further explanation is contained in Note 29.
Investments in subsidiaries (Company only)
The carrying value of investments in subsidiaries requires management to select an appropriate discount rate andterminal growth rate for the valuation of future cash flows in assessing each investment for impairment. The key
assumptions used in making this assessment and the sensitivity analysis of the impact of varying theseassumptions are disclosed in Note 15.
Goodwill
The goodwill impairment test requires the management to select appropriate valuation model and to makeestimates of company's future cash flows. The unit's recoverable amount is determined by an independent
external valuer using the discounted cash flow method, based on forecasted cash flow projections over the next
five years (discounted cash flow method). The key assumptions used in the valuation include a 5% annual growthrate and discount factors for each year as follows: 0.81 (Year 1), 0.65 (Year 2), 0.53 (Year 3), 0.42 (Year 4), 0.34
(Year 5). Growth rate used in the model is based upon valuer’s past experiences and anticipated changes inentity’s revenues and costs, taking into account external market conditions and competitor’s activity. Key
assumptions used to derive the discount rate are consistent with external sources of information.
Provisions for liabilities
The Group operates in a regulatory and legal environment that, by nature, has a heightened element of litigation
risk inherent to its operations. As a result, it is involved in various litigation, arbitration, and regulatory
investigations and proceedings arising in the ordinary course of the business.

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When the Group can reliably measure the outflow of economic benefits in relation to a specific case and considers
such outflows to be probable, the Group records a provision against the case. Where the probability of outflow is
considered to be remote, or probable, but a reliable estimate cannot be made, a contingent liability is disclosed.
However, when the Group is of the opinion that disclosing these estimates on a case-by-case basis would
prejudice their outcome, the Group does not include detailed, case-specific disclosures in its consolidated financial
statements.
Given the subjectivity and uncertainty of determining the probability and amount of losses, the Group takes into
account a number of factors including legal advice, the stage of the matter, and historical evidence from similar
incidents. Significant judgement is required to conclude on these estimates. Further details on the Group's
provisions for liabilities are given in Note 24.
The Group also recognises a provision for dilapidation relating to leased office spaces, to bring the buildings backto their original state at the end of the lease. At the inception of the leases, a provision is recognised based on
management's best estimate and is discounted to the present value at the start of the lease, using the same
incremental borrowing rate as used in the calculation of the lease liability. The discount is unwound over the life of
the lease.

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6. Fee Income
Group

2023

2022

£000

£000

Cards and interchange

486,215306,311

Foreign exchange and wealth394,549

269,967

Subscriptions

243,605

158,701

Other

85,44657,594

1,209,815

792,573Nature of fee income

Total fee income

Type of fee income
Transferred at a point in time

949,510622,651

Transferred over time

260,305

169,922

1,209,815

792,573

Total fee income

Remaining performance obligations
Due to the nature of its commercial arrangements, the Group does not have any material remaining performanceobligations related to contracts with durations over one year at 31 December 2023 or 31 December 2022.
The Group determines the disaggregation of total fee income by major geographical area based on customer
address.
Geographical markets

2023

2022

£000

£000

United Kingdom

351,171

237,328

Europe (excluding United Kingdom)

827,080

536,574

Rest of the world

31,564

18,671

Total fee income

1,209,815

792,573

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7. Interest Income and Expense
Group

2023

2022

£000

£000

383,320

38,391

Interest income
Cash and bank balancesInterest accretion on treasury investments measured at amortised cost

52,5699,483

Interest accretion on treasury investments measured at FVOCI

27,394

19,454—

7,035Interest accretion on interest rate swaps
Interest on loans and advances to customers
Total interest income using EIR method

36,101

7,728

499,384

82,091Other interest income

177

598

Total interest income

499,561

82,689(2,973)(15,505)

(450)

(550)

(36,128)—

Interest expense
Negative interest on customer funds
Interest expense on lease liabilities
Interest expense on interest rate swaps
Interest expense paid to banking partner(3,242)—

Total interest expense using EIR method(42,793)(16,055)

Other interest expense

—

(10)

Total interest expense(42,793)(16,065)

Net interest income

456,768

66,6248. Other IncomeGroup
Net yield on foreign exchange derivatives
Net gain on changes in the fair value of hedging derivatives and hedged items
Total other income

2023

2022

£000

£000

88,51439,877—

7,408

88,51447,285

Net cumulative gains in the fair value of hedging derivatives and hedge items decreased from £7.4 million at
31 December 2022 to £2.3 million at 31 December 2023. The current period loss of £5.1 million is recognised underother operating expenses. Refer to Note 30.5 for details on the macro fair value hedge.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

1309. Fee Expense
Group

2023

2022

£000

£000

206,959

166,983

Partner-related costs

57,31438,364

Cost of cards and card readers

22,22522,294

Processing and settlement fees

Other
Total fee expense

19,602

679

306,100

228,320

10. Administrative Expenses
2023

2022

Note

£000

£000

11

Group
Staff costs

498,399

361,872

Advertising and marketing

241,281129,295

IT and communications

47,44430,281

Outsourced support

42,11038,026

Legal and professional costs

34,10928,903

Depreciation and amortisation expenses
Premises-related costs
Impairment losses other than expected credit losses
Impact of foreign exchange rates
Other costs
Total administrative expenses

20, 21

10,171

9,102

9,471

9,752

662

819

(1,854)(1,539)50,95960,565

932,752

667,076

Research and development charged as an expense during 2023 is £122.3 million (2022: £88.0 million).
During 2023, the Group recognised an impairment of £0.5 million (2022: £nil) of intangible assets in relation tosoftware capitalised during the acquisition of Nobly. The impairment was due to the decision not to relaunch theacquired software as a stand-alone product. The recoverable amount of the asset at 31 December 2023, which is
calculated in accordance with the asset's value in use, is £nil (2022: £0.5 million).
During the year the Group recognised £nil impairment losses on capitalised costs (2022: £0.8 million). Details on
the nature of this impairment have been disclosed in Note 17.
During the year the Group (including its overseas subsidiaries) obtained the following services from the Group’s
auditors.
Group

2023

2022

£000

£000

Fees payable for the audit of the Company and Group’s financial statements

2,918

3,950

Fees payable for the audit of the Company’s subsidiaries

2,685

291

Fees payable to the Company’s auditors with respect of the prior year

608—

Fees payable to the Company’s auditor for other assurance services

84

49

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

13111. Staff Costs
Group

2023

2022

£000

£000

349,633

249,581

Share-based payments

45,13039,049Social security costs

52,75332,711

Professional employer organisation costs

16,997

10,580Contributions to defined contribution pension schemes

6,604

5,687

Staff recruitment costs

2,725

5,152

Wages, salaries, and bonuses

Other staff costs

24,557

19,112

Total staff costs

498,399

361,872

The Company had no staff costs in the year ended 31 December 2023 (2022: £nil).
The number of employees for the Group at 31 December 2023 is 8,152 (2022: 5,913). The average monthly
number of employees, including the Executive Directors, during the year was as follows:
Group

2023
No.

2022
No.

Customer operations

2,743

1,440

Corporate functions

1,494

1,334

Products

1,569

1,170

Sales

893

495

Regions

290

216

2

2

6,991

4,657

Executive Directors
Total average number of employees

11.1. Directors’ remuneration
Group

2023

2022

£000

£000

Director emoluments

1,310

1,108

Share-based payments

123

18,621Social security costs and other benefits

173

215

Contributions to defined contribution pension schemes
Total Directors' remuneration

3

2

1,609

19,946

In 2023, no Directors (2022: no Directors) received compensation, for their services provided as a Director of theCompany, in the form of shares in the Company. During the year, no Directors (2022: one) exercised share options
during the year for a gain of £nil (2022: £1.2 million).
Group

2023

2022

£000

£000

Director emoluments

333

100

Share-based payments

45

17,693Social security costs and other benefits
Total compensation for highest paid Director

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

0

13

378

17,806132

12. Taxation
12.1. Income tax expense
2023

2022

£000

£000

UK corporation tax for the year at 23.5% (2022: 19.0%)

45,8192,904

Overseas tax for the year

18,843

11,499Adjustments in respect of previous periods

(638)

971

64,024

15,37431,026(4,251)—(42,268)

Group
UK corporation tax

Total current tax
Deferred tax
Current year charge/(credit) recognised
Previously unrecognised deferred tax charge/(credit)
Adjustments in respect of previous periods(1,297)(75)

Total deferred tax charge/(credit)

29,729(46,594)

Total tax charge/(credit) on continuing operations

93,753(31,220)

12.2. Reconciliation of effective tax rate
The tax assessed in each year differs from the standard rate of corporation tax in the United Kingdom for the
relevant year. The differences are explained below.
2023

2022

£000

£000

Profit/(loss) before tax

437,828(25,418)

Tax calculated at UK tax rates applicable of 23.5% (2022: 19.0%)

102,890(4,829)

Income not subject to tax(34,933)(46,944)

Non-deductible expenses

30,90054,083

Recognition of previously unrecognised deferred tax

775(42,268)

Foreign exchange

45

661

Group

Effects of:

Adjustments in respect of previous periods(1,935)896

Differences in overseas tax rates and overseas tax credits(4,897)(2,459)173

451

Tax provisions
Losses and other temporary difference
Deferred tax not recognised
Total tax expense/(credit) reported in the consolidated income statement

3

—

732

9,189

93,753(31,220)

As a result of the change in UK corporation tax rate during the year ended 31 December 2023, the Group has
incurred a blended UK headline tax rate of 23.5%.
The Group’s effective tax rate (ETR) before other comprehensive income (OCI) is a 21% charge (2022: 123%
credit).

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

133

12.3. Tax on items not recognised in profit or loss statement
2023

2022

£000

£000

Share-based payments(5,008)(1,249)Total current tax not recognised in consolidated statement of comprehensive income(5,008)(1,249)(2,045)(37,550)

4,565(4,565)Group
Current tax (credit)/charge on:Deferred tax (credit)/charge on:
Share-based payments
Losses and other deductions
Losses/(gains) on financial assets at fair value through OCI

2,822(3,444)

Total deferred tax not recognised in consolidated statement of comprehensive income

5,342(45,559)

12.4. Deferred tax
The following tables show deferred tax recorded in the Consolidated Statement of Financial Position and changes
recorded in tax (credit)/expense.
The amounts are different from those disclosed on the Consolidated Statement of Financial Position as they arepresented before offsetting asset and liability balances where there is a legal right to set-off and an intention tosettle on a net basis.
31 December 2023

Group

Deferredtax assets£000

Financial assets at fair value through OCI
Share-based payments

Deferredtax
liabilities£000

Profit or
loss

OCI

Equity

£000

£000

£000

622

—

—

622

—

55,715—

16,120—39,595

Deferred compensation

780

—

780

—

—

Fixed asset differences

639

(264)

375

—

—

Other temporary differences

898

—

898

—

—

Losses and other deductions

223

—

223

—

—

58,877(264)

18,396622

39,595

Deferredtax assets

Profit or
loss

OCI

Equity

£000
—

£000
3,444

£000
—

9,858

—

37,550Total

31 December 2022

Financial assets at fair value through OCI

£000
3,444

Deferredtax
liabilities£000—

Share-based payments

47,408—Deferred compensation

611

—

611

—

—

Fixed asset differences

—

(396)

(157)

—

—

Group

Other temporary differences

4,853

—

4,384

—

—

Losses and other deductions

37,764—31,898

—

4,565

Total

94,080(396)

46,594

3,444

42,115

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

134

Reconciliation of net deferred tax asset
Group
Net deferred tax asset/(liability) at 1 January
Adjustments in respect of previous periods
Deferred tax (charge)/credit recognised in profit or loss

2023

2022

£000
93,684

£000
1,540

1,297

(9)

(31,026)

46,594

Deferred tax (charge)/credit recognised in OCI(2,822)

3,444

Deferred tax (charge)/credit recognised directly in equity(2,520)42,115Net deferred tax asset at 31 December

58,613

93,6842023

2022

Unrecognised deferred tax asset
Group

£000

£000

Share-based payments—

321

Social security and other employment costs—

44

Accelerated depreciation for tax purposes—

7

Other temporary differences—

71

Losses available for offsetting against future taxable income

9,063

13,481

Unrecognised deferred tax asset at 31 December

9,063

13,924The Group had gross recognised tax losses of £0.9 million at 31 December 2023 (2022: £161.3 million). The Group
had gross unrecognised tax losses of £46.8 million at 31 December 2023 (2022: £65.1 million).
The Company recognised a deferred tax asset at 31 December 2023 of £nil (2022: less than £0.1 million). The
Company had gross recognised and unrecognised tax losses at 31 December 2023 of £nil (2022: £0.02 million).
Factors that may affect future tax changes
The main rate of corporation tax in the UK has been 19% since 1 April 2017. Neither the Company nor the Group is
subject to the UK banking surcharge.
On 24 May 2021, the date of substantive enactment, an increase in the UK corporation tax rate from 19% to 25%
applicable from 1 April 2023 was enacted. On 14 October 2022, and again on 17 November 2022 in the
Chancellor's Autumn Statement, the UK Government reiterated this.
Recognition of deferred tax asset and tax losses carried forward
UK
The Group has recognised UK deferred tax assets of £55.7 million on share-based payments based on their value
at 31 December 2023. In assessing the probability of recovery, the Group has relied upon a recent history of UK
taxable profits, together with the Group’s three-year plan that has been used for the going concern assessment,
and which demonstrates positive profit forecasts throughout the remainder of the forecast period.
Share-based payments typically have an expiration period of ten years from vesting date. It is expected, therefore,that deferred tax assets will be utilised over the period between vesting and expiration, when individuals choose to
exercise their options. Management is satisfied that there will be sufficient taxable profits available throughout theperiod in which the awards are available to be exercised.
Those UK deferred tax assets and liabilities have been measured in the current reporting period based on theincreased UK corporation tax rate (25%) and reflected accordingly in the Consolidated Statement ofComprehensive Income and Consolidated Statement of Changes in Equity, as this is the rate that has been
substantively enacted at 31 December 2023.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

135

Lithuania
Previously recognised deferred tax assets of £4.9 million (2022) on carried forward losses and fair value
movements on securities and derivative financial instruments have been utilised in full in the year to 31 December
2023.
Group

OECD’s Pillar Two global minimum tax impact
On 17 November 2022, the UK Government confirmed its intention to implement the OECD’s Pillar Two global
minimum tax rules, including an income inclusion rule and UK qualified domestic minimum top-up tax. Thislegislation was substantively enacted on 20 June 2023, with effect from 1 January 2024, and seeks to ensure that
UK headquartered multinational enterprises are subject to minimum effective tax rate of 15% on UK and overseas
profits arising after 31 December 2023.
As a result of this new legislation, the Revolut Group will be obligated to pay top-up tax in respect of jurisdictions
that have an effective tax rate less than the Pillar Two rate of 15%. The Group has reviewed the legislation andguidance published by the UK, alongside the OECD model rules, and assessed the potential exposure to the Pillar
Two global minimum tax rules based on FY23 financial statement data. This assessment has concluded that the
Pillar Two legislation is not expected to result in a material impact to the Revolut Group. To the extent that otherjurisdictions implement a Qualifying Domestic Minimum Top Up Tax (QDMTT), the top-up tax may be payable inthose jurisdictions rather than the UK.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

13613. Cash and Cash Equivalents
Group

31 December
2023

31 December
2022

£000

£000

Cash held at banks

7,222,102

6,844,860

Restricted cash held at banks in respect of customers

2,816,310

3,593,408

Restricted term deposits held in respect of customers classified as cash equivalents

2,764,295

142,151

Term deposits classified as cash equivalents
Total cash and cash equivalents

24,947599

12,827,654

10,581,018

The Company does not have any cash and cash equivalents at 31 December 2023 (2022: £nil).
Cash held at banks represents the Group’s own funds held for liquidity requirements, including cash obtained from
deposits from customers, and its own operating cash balances for general corporate purposes.
Restricted cash held at banks and term deposits held in respect of customers includes safeguarded funds related
to the Group’s regulated e-money and wealth services. In the UK, client funds with respect to e-money services
are held in segregated accounts with authorised credit institutions as part of the Group’s safeguarding policy. In
other jurisdictions, the funds are held separately from the Group’s own cash resources and are safeguarded
through the provision of a bank guarantee from a third-party authorised credit institution.
The Group safeguards a portion of the funds in respect of customers in the form of bonds which are disclosed in
Note 14.
Not included in restricted cash held at banks in respect of customers are balances related to the provision of emoney services in the US. These services are provided through partnerships with authorised credit institutions toprovide consumer protection. In this arrangement, the client funds and the associated customer liability are notrecognised on the Group’s Consolidated Statement of Financial Position and rather are held on the statement offinancial position of the relevant partnership credit institution. There is no material impairment recognised on the
carrying value of cash and cash equivalents as amounts placed are with institutions rated BB+ or above and haveimmaterial probability of default.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

13714. Treasury Investments
Group

31 December
2023

31 December
2022

Source of funds

Classification

£000

£000

Restricted cash held at banks
in respect of customers

Held to collectand sell

389,866

1,712,292

Financial assets measured at FVOCI
Government bonds

Financial assets measured at amortised cost
Debt instruments

Own funds

Held to collect

2,103,181

982,367

Securities purchased under resaleagreements (reverse repos)

Own funds

Held to collect

374,002—

Government loans

Own funds

Held to collect

369,007—

Short-term deposits

Own funds

Held to collect

22,456—

3,258,512

2,694,659

Total treasury investments

Refer to Notes 30.1, 30.2, and 30.3 for more details on treasury investments.
The Company does not have any treasury investments at 31 December 2023 (2022: £nil).
Government bonds represent holdings in High Quality Liquid Assets (HQLA). These investments are accounted forat fair value through other comprehensive income (FVOCI). Restricted bonds held in respect of customers
represent safeguarded funds related to the Group’s regulated e-money services.
Held to maturity debt instruments were purchased using own funds. These debt instruments are measured atamortised cost, owing to the way that the portfolio is managed, and in particular management’s intention to nottrade these debt instruments but hold them until maturity. Debt instruments may include bonds, collateralised loan
obligations (CLO), commercial paper (CP), or certificates of deposit (CD), which may constitute HQLA.
Investment in reverse repurchase agreements are measured at amortised cost due to management's intention tocollect the contractual cash flows of the agreements until maturity. At 31 December 2023 the fair value of financial
assets accepted as collateral regarding the Group’s reverse repurchase agreements that the Group is permitted tosell or repledge in the absence of default was £400.9 million (2022: £nil), of which the group had sold or repledged£nil (2022: £nil).
Government loans purchased during 2023 are also measured at amortised cost as they are viewed as a credit
instrument and are not actively managed to realise fair value changes, but rather are held to collect contractual
cash flows until maturity.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

13815. Investments in Subsidiaries£000

Company
Cost or valuation
At 1 January 2022—

Additions

14,165

Reorganisation

1,299,523

At 31 December 2022

1,313,688

Additions

124,069

At 31 December 2023

1,437,757

Net book value
At 31 December 2023

1,437,757

At 31 December 2022

1,313,688

The increase in the investments in subsidiaries for the period ending 31 December 2023 is due to capital injections
in certain subsidiaries and issuance of share-based payments to the employees of certain subsidiaries.
The increase in investments in subsidiaries during 2022 was due to a group reorganisation which took place during2022, as set out in Note 2.1, following which Revolut Group Holdings Ltd became the new ultimate parent of theGroup. When the Company’s investments in subsidiary companies are not supported by their net assets, theCompany assesses the net present value of the future cash flows of the subsidiaries. Where this occurs,management forecasts of the subsidiaries' financial performance are extrapolated to produce a terminal value.
Financial performance over the first five years are consistent with the forecasts prepared by management.
Terminal values are calculated from the year five cash flows with a 3% terminal growth rate applied.
The Directors consider the carrying value of the Company’s investments to be supported by either the net assets
or net present value of future cash flows and therefore there was no impairment within the Company for the year
ended 31 December 2023 (2022: £nil).
The list of subsidiary undertakings of the Group at 31 December 2023 and 2022 is set out below. Percentages
listed reflect each entity's effective interest held by the Group as at 31 December 2023 and 2022. All trading
subsidiary undertakings are consolidated within the Group financial statements.
31 December
2023

31 December
2022

7 Westferry Circus, Canary Wharf,
London, England, E14 4HD

100%

100%

Technology
services, financial
Services

7 Westferry Circus, Canary Wharf,
London, England, E14 4HD

100%

100%

Ordinary

Holding company

7 Westferry Circus, Canary Wharf,
London, England, E14 4HD

100%

100%

Revolut Holdings US Inc.

Ordinary

Holding company

850 New Burton Road, Suite 201,
Dover, Kent County, Delaware 1990

100%

100%

Revolut Corporate
Services Ltd (formerly
Revolut FIC Ltd)

Ordinary

Dormant atreporting date

7 Westferry Circus, Canary Wharf,
London, England, E14 4HD

100%

100%

Revolut Technologies
Inc.*

Ordinary

Payment services

850 New Burton Road, Suite 201,
Dover, Kent County, Delaware
19904

100%

100%

Company

Class ofshare

Principal activity

Registered address

Revolut NewCo UK Ltd

Ordinary

Holding company

Revolut Ltd

Ordinary

Revolut HoldingsInternational Ltd

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

139

31 December
2023

31 December
2022

850 New Burton Road, Suite 201,
Dover, Kent County, Delaware
19904

100%

100%

Dormant atreporting date

125047, Moscow, Butyrskiy Val
street, bld. 10, office 05-155 Total

100%

100%

Ordinary

Dormant atreporting date(under liquidation)

13/F, Gloucester Tower, The
Landmark, 15 Queen's Road Central,
Central, Hong Kong

100%

100%

Revolut Technologies
Ukraine LLC*

Ordinary

Softwaredevelopment

LIFT99 Kyiv Hub Volodymyrska St,
101, building 1
Kyiv, Ukraine, 01033

100%

100%

RT Digital Securities
Cyprus Ltd

Ordinary

Cryptocurrency

Pikioni, 10 Flat/Office 5, 3075,
Limassol, Cyprus

100%

100%

Revolut Trading Ltd*

Ordinary

Security dealing
activities

7 Westferry Circus, Canary Wharf,
London, England, E14 4HD

100%

100%

Revolut Trading Nominees Ordinary
Ltd*

Dormant atreporting date

7 Westferry Circus, Canary Wharf,
London, England, E14 4HD

100%

100%

Global Retail Technology

Ordinary

Softwaredevelopment

The Corporation Trust Company
1209 Orange Street Wilmington, DE
19801

100%

100%

Global Retail Technology
Limited*Ordinary

Softwaredevelopment

7 Westferry Circus, Canary Wharf,
London, England, E14 4HD

100%

100%

Revolut Technologies
S.A.*

Ordinary

Dormant atreporting date

9 rue de Bitbourg, L-1273,
Luxembourg

100%

100%

Revolut Technologies
India Private Limited(formerly Revolut
Operations India Private
Limited)*Ordinary

Business
Development

912, Sureshwari Techno IT Park,
Village Eskar, Link Road, Borivali
West, Mumbai, Mumbai City,
Maharashtra, India, 400092

100%

100%

Ultimately Ltd*

Ordinary

Dormant at
Trinity Chambers, PO Box 4301,
reporting date
Road Town, Tortola, British Virgin(Under Liquidation) Islands

100%

100%

Revolut Holdings Europe
UAB

Ordinary

Holding company

Konstitucijos ave. 21B, Vilnius,
LT-08130

100%

100%

Revolut Securities Europe
UAB*

Ordinary

Security dealing
activities

Konstitucijos ave. 21B, Vilnius,
LT-08130

100%

100%

Revolut Insurance Europe
UAB*

Ordinary

Insurance
Intermediary

Konstitucijos ave. 21B, Vilnius,
LT-08130

100%

100%

Revolut Bank UAB*

Ordinary

Deposits
acceptance andconsumer lending

Konstitucijos ave. 21B, Vilnius,
LT-08130

100%

100%

Revolut Travel Ltd*

Ordinary

Insurance
Intermediary

7 Westferry Circus, Canary Wharf,
London, England, E14 4HD

100%

100%

Revolut Australia NOHC
Pty Ltd*

Ordinary

Holding company

Level 28, 161 Castlereagh Street,
Sydney, NSW, 2000 Australia.

100%

100%

Revolut Payments
Australia Pty Ltd*

Ordinary

Financial services

Level 28, 161 Castlereagh Street,
Sydney, NSW, 2000 Australia.

100%

100%

Revolut Payments New
Zealand Pty Ltd*

Ordinary

Dormant atreporting date

Level 28, 161 Castlereagh Street,
Sydney, NSW, 2000 Australia.

100%

100%

Revolut Technologies
Singapore Pte. Ltd*

Ordinary

Payments services, 30 Cecil Street, #19-08, Prudential
e-money issuance, Tower, S049712
and insurance
brokerage

100%

100%

Company

Class ofshare

Revolut Securities Inc.*

Principal activity

Registered address

Ordinary

Broker-dealer for
trading services

Revolut Technologies
Russia LLC*

Ordinary

Revolut Technologies
Limited*

LLC*

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

140

31 December
2023

31 December
2022

30 Cecil Street, #19-08, Prudential
Tower, 049712

100%

100%

Dormant atreporting date(under liquidation)

Suite 2300, Bentall 5, 550 Burrard
StreetVancouver, British Columbia V6C
2B5

100%

100%

Ordinary

Businessdevelopment

1B - 1003, Parinee Crescenzo G
Block BKC, Bandra Kurla Comple,
Bandra East Mumbai, Maharashtra
MH400051

99%

99%

Arvog Forex Private
Limited*Ordinary

Foreign exchange
trading

A/7 Bharat Nagargrant Road
Mumbai MH 400007 IN

99.99%

99.99%

Revolut Technologies
Japan, Inc.*

Ordinary

Payments services, Room number ('3F, 310'), 106-0032
e-money issuance, ARK Hills South Tower, 1-4-5
and insurance
Roppongi, Minato-ku, Tokyo
brokerage
106-0032

100%

100%

Revolut International
Services Ltd

Ordinary

Other service
activities notelsewhereclassified

7 Westferry Circus, Canary Wharf,
London, England, E14 4HD

100%

—%

Revolut Securities Japan,
Inc.*

Ordinary

Licence application Room number ('3F, 310'), 106-0032
in progress for
ARK Hills South Tower, 1-4-5
trading services
Roppongi, Minato-ku, Tokyo
106-0032

100%

100%

Revolut Holdings Mx SA
de CV*

Ordinary

Holding company

Avenida Paseo de las Palmas 405,
Int. 1702 Miguel Hidalgo, Lomas deChapultepec, 11000, Ciudad de
Mexico

99.9%

99.9%

Revolut de Mexico SA deCV*

Ordinary

Money transmitterand relatedcommercial
activities

Avenida Paseo de las Palmas 405,
Int. 1702, Miguel Hidalgo, Lomas deChapultepec, 11000, Ciudad de
Mexico

99.9%

99.9%

Revolut Servicios a la
Tecnologia Mexico SA deCV*

Ordinary

Technology
services

Avenida Paseo de las Palmas 405,
Int. 1702, Miguel Hidalgo, Lomas deChapultepec, 11000, Ciudad de
Mexico

99.9%

99.9%

Revolut Tecnologia Brasil
LTDA*

Ordinary

Business
Development

Rua Manoel da Nóbrega, 1280, 10th
floor, Paraíso, São Paulo – SP, CEP
04001-902

100%

100%

Revolut Wealth Inc.*

Ordinary

Authorisation
The Corporation Trust Company
granted to offer an 1209 Orange Street Wilmington, DE
automated
19801
investment featurein the US.

100%

100%

Revolut Holdings Brasil
LTDA*

Ordinary

Financial institution Rua Manoel da Nóbrega, n. 1280,
holdings
10th floor, CEP 04001-902, at Cityof São Paulo, State of São Paulo Brazil

100%

—%

Revolut Sociedade deCredito S.A.*

Ordinary

Credit, financing
and investment

99.9%

—%

Class ofshare

Principal activity

Registered address

Ordinary

Trading services

Revolut Technologies Ltd* Ordinary

Revolut Payments India
Private Limited*

Company
Revolut Securities
Singapore Pte. Ltd*Rua Manoel da Nóbrega, n. 1280,
10th floor, CEP 04001-902, at Cityof São Paulo, State of São Paulo Brazil

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

141

Company

Class ofshare

RevReceivables I LLC*

Revolut Credit Services
Australia Pty Ltd*

31 December
2023

31 December
2022

c/o Cogency Global, 850 New
Burton Road, Suite 201, Dover, DE,
19904

100%

—%

Level 28, 161 Castlereagh Street,
Sydney, NSW, 2000 Australia

100%

—%

Principal activity

Registered address

Ordinary

Business
Development

Ordinary

Provision ofservices to obtain
credit score on
behalf of AU
customers*Held indirectly

Global Retail Technologies Limited, which is 100% owned by the Group, is not subject to an audit by virtue ofs479A of the Companies Act 2006 relating to subsidiary undertakings.
Branches
Revolut Ltd conducts business through branches in Poland, Portugal, Lithuania, Germany, Romania, France, Ireland,
and Spain. The following branches were in existence at 31 December 2023:
Company

Registered address

Revolut Ltd (Sp z o.o.) Oddzial w Polsce.

Podium Park, Jana Pawła, 43a, Krakow, 31-864, Polska

Revolut Ltd - Sucursal em Portugal.

Avenida Menéres 612, 4450-189 Matosinho, Portugal

Revolut Ltd filialas.

Konstitucijos ave. 21B, Vilnius, LT-08130

Revolut Ltd Zweigniederlassung Deutschland.

Friedrichstrasse 76, c/o WeWork, 10117 Berlin, Germany

Revolut Ltd Londra Sucursala Bucuresti.

17, Ion Mihalache blvd, Mindspace Victoriei, 1st fl, office nb. 105,
Tower Center International Building, District 1, Bucharest

Revolut Ltd succursale de France.

10 avenue Kleber, 75116, Paris, France

Revolut Ltd (Irish Branch).

Dublin landings, North dock, Dublin 1, Ireland

Revolut Ltd Spain Sucursal En España.

Cloudworks Serrano 20 28001, Madrid, Spain

Revolut Bank UAB conducts business through branches in France, Netherlands, Portugal, Hungary, Ireland,
Belgium, Italy, Germany, Spain, and Romania. The following branches were in existence at 31 December 2023:
Company

Registered address

Revolut France succursale de Revolut Bank UAB(French Branch).

10 avenue Kleber, 75116, Paris, France

Revolut Bank UAB (Netherlands Branch).

Barbara Strozzilaan 201, 1083HN Amsterdam, Netherlands

Revolut Bank UAB - Sucursal em Portugal (Portugal
Branch).

Sitio, Rua do Campo Alegre, 774 Distrito: Porto Concelho: Porto
Freguesia: Lordelo do Ouro e Massarelos 4150 171 Porto

Revolut Bank UAB Magyarországi Fióktelepe(Hungarian Branch).

1137 Budapest, Radnóti Miklós utca 2., Hungary

Revolut Bank UAB (Irish Branch).

2 Dublin landings, North dock, Dublin 1, Ireland

Revolut Bank UAB (Belgian Branch).

Square de Meeûs 35, 1000 Bruxelles, Louise Centre, Stephanie
Square Centre

Revolut Bank UAB (Italian Branch).

Via Arcivescovo Calabiana 6, 20139 Milan, Italy

Revolut Bank UAB, Zweigniederlassung Deutschland(German Branch).

Zimmerstraße 78, 10117 Berlin, Germany

Revolut Bank UAB Sucursal En España (Spanish
Branch).

Príncipe de Vergara 132, 4ª planta, 28002 Madrid, Spain

Revolut Bank UAB Vilnius Sucursala Bucuresti(Romanian Branch).

Bucureşti Sectorul 1, Bulevardul Ion Mihalache, Nr. 15-17, Mindspace
Victoriei, biroul 111, cladirea Tower Center International, Etaj 1,
Romania

One branch of Revolut Bank UAB was deregistered as of as of 29 June 2023:

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

142

Company

Registered address

Revolut Bank UAB (Sp z o.o.) Oddział w Polsce(Polish Branch).

Podium Park, al. Jana Pawła II, 43a, Kraków, 31-864, Poland

RT Digital Securities Cyprus Ltd conducts business through an Italian branch; registered address: Piazza Santa
Maria delle Grazie 1, 20122, Milan (MI), Italy.
Group reorganisations
In July 2023, Revolut Holdings International Ltd (UK) transferred its shareholding in Revolut Sociedade de Crédito
Direto S.A (Brazil) to Revolut Holdings Brazil Ltda (Brazil) in order to ensure local ownership of Revolut Sociedadede Crédito Direto S.A. As a result of the restructuring, Revolut Holdings International Ltd became the 100% indirect
parent company of Revolut Sociedade de Crédito Direto S.A.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

143

16. Investment in Commodities
Group

31 December
2023

31 December
2022

£000

£000

Commodities

104,618

94,221

Total investment in commodities

104,618

94,221The Company does not have any investment in commodities at 31 December 2023 (2022: £nil).
Investment in commodities represent holdings in precious metals that are held to hedge the Group’s exposure tocommodity price risk on its customer liabilities related to precious metals. These investments are accounted for atfair value through profit or loss.

17. Trade and Other Receivables
Group

31 December
2023

31 December
2022

£000

£000

220,986

59,534

17,94024,849Cash collateral

73,524

93,120

Amounts due from card schemes

34,47047,166

Amounts recoverable on card scheme contracts*

36,576

21,714

Negative customer liabilities**

2,760

7,120

Current
Financial assets:
Settlement receivables
Trade receivables

Other deposits with government institutions
Other receivables
Total current financial assets

—

5,658

30,37228,007

416,628

287,168

35,817

20,141

Non-financial assets:
Prepayments and accrued income
Other non-financial assets***

36,482

34,250Total current non-financial assets

72,29954,391

488,927

341,5597,312—

496,239

341,559

Total current assets

Non-current
Financial assets:
Other receivables
Total trade and other receivables* Amounts recoverable on card scheme contracts represents collateral held with our partners for the settlement process.
** Negative customer liabilities and corresponding provisions are disclosed in detail in Note 31.1.
*** Other non-financial assets primarily represent payroll prefunding and capitalised costs incurred to obtain customer contracts.

The Company recognises amounts owed by group undertakings of £25.3 million at 31 December 2023 (2022: £0.2
million) related to funds transferred to Group subsidiaries that have not been recognised as capital contributions.
This was reclassified as an equity investment and converted to shares in February 2024.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

144

Capitalised costs
During the year, £9.5 million of capitalised costs was amortised (2022: £9.2 million). As a result, the Group had a
net carrying value of £6.5 million (2022: £15.9 million) as costs to obtain customer contracts. Capitalised costs are
determined based on referral campaign rewards paid for new customer sign-ups less rebates received fromvendors. This is amortised over three years which reflects management's estimate of the average life of acustomer contract based on historical customer retention data. There were £nil impairment losses recognised on
the capitalised costs in 2023 (2022: £0.8 million).
The Group does not recognise any contract assets at 31 December 2023 (2022: £nil).
Management assesses that the carrying amounts of amounts receivable from debtors approximate their fair values
as the majority of balances are expected to be received within one years of the reporting date.

18. Loans and Advances to Customers
Group

31 December
2023

31 December
2022

Note

£000

£000

522,760

194,66331.1(33,109)(4,746)

41,753

14,589(3,811)(926)

527,593

203,580

352,644

134,567

Consumer loans
Less: loss allowance
Credit card
Less: loss allowance

31.1

Net loans and advance to customers

Analysed into:
Non-current assets

31.2

Current assets

31.2

Net loans and advance to customers

174,949

69,013

527,593

203,580

The Company does not have any loans and advances to customers at 31 December 2023 (2022: £nil).

19. InventoriesGroup

31 December
2023

31 December
2022

£000

£000

Inventory — cards, packaging, and other

14,277

17,838Inventory — card readers

1,522

766

15,79918,604

Total inventories

Inventories comprise cards (including prepaid, credit and debit cards), packaging, and card readers not yet
distributed to customers. The difference between purchase price of inventories and their replacement cost is notmaterial. The use of inventory recognised in fee expense during the year was £22.2 million (2022: £22.3 million).
There were £nil losses recognised in cost of sales during the year in respect of obsolete inventory (2022: £0.2
million).
The Company does not have any inventories at 31 December 2023 (2022: £nil).

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

145

20. Property, Equipment, and Right-of-use Assets
Group

Fixtures &fittings

Officeequipment

Computerequipment

Right-of-use
assets

Total

£000

£000

£000

£000

£000

11,843

1,502

7,910

21,921

43,176

Additions

78

—

4,303

747

5,128

Disposals and derecognition

—

(69)

—

(1,574)(1,643)Cost
At 1 January 2022

195

11

461

132

799

At 31 December 2022

12,116

1,444

12,674

21,226

47,460

At 1 January 2023

Foreign exchange movements

12,116

1,444

12,674

21,226

47,460Additions

143

1

5,807

8,551

14,502

Disposals and derecognition

(35)

(35)

(246)

(1,812)(2,128)

—

—

—

21

21

Other movements

(58)

23

(96)

54

(77)

12,166

1,433

18,13928,04059,778

At 1 January 2022

(2,882)(711)(5,083)(9,372)(18,048)

Charge for the year

(1,196)(369)(2,368)(5,117)(9,050)

—

—

—

1,574

1,574

Foreign exchange movements
At 31 December 2023

Accumulated depreciation and impairment losses

Disposals and derecognition

(80)

29

20

35

4

At 31 December 2022

(4,158)(1,051)(7,431)(12,880)(25,520)

At 1 January 2023

(4,158)(1,051)(7,431)(12,880)(25,520)

Charge for the year

(1,205)(276)(3,355)(5,331)(10,167)

25

34

219

1,583

1,861

Foreign exchange movements

Disposals and derecognition
Other movements

—

—

—

(143)

(143)

Foreign exchange movements

30

(17)

39

42

94

(5,308)(1,310)(10,528)(16,729)(33,875)

At 31 December 2023

Carrying value
At 31 December 2023

6,858

123

7,611

11,311

25,903

At 31 December 2022

7,958

393

5,243

8,346

21,940At 31 December 2021

8,961

791

2,827

12,54925,128The Company does not have any property, equipment, or right-of-use assets at 31 December 2023 (2022: £nil).
Right-of-use assets primarily represent leases for office locations.
The gross carrying amount of fully depreciated property and equipment that is still in use at 31 December 2023 is£30.1 million (2022: £25.3 million).

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

14621. Intangible Assets
Group

Computer
Software

Goodwill*

Total

£000

£000

£000

8,337

—

8,337

Additions

38

2,003

2,041

Disposal

(510)

—

(510)

At 31 December 2022

7,865

2,003

9,868

At 1 January 2023

7,865

2,003

9,868

Additions———

Disposals(7,253)—(7,253)Cost
At 1 January 2022

Foreign exchange movements

(2)

—

(2)

At 31 December 2023

610

2,003

2,613

At 1 January 2022

(7,616)—(7,616)

Amortisation charge

(52)

—

(52)

Disposals

305

—

305

Foreign exchange movements

(1)

—

(1)

At 31 December 2022

(7,364)—(7,364)

At 1 January 2023

(7,364)—(7,364)

Amortisation charge

(4)

—

(4)

Impairment charge

(489)

—

(489)

Disposals

7,264

—

7,264

-

—

-

(593)

—

(593)

At 31 December 2023

17

2,003

2,020

At 31 December 2022

501

2,003

2504

At 1 January 2022

721

—

721

Accumulated amortisation and impairment losses

Foreign exchange movements
At 31 December 2023

Carrying amount*The carrying value of goodwill relates to the acquisition of Arvog Forex Private Limited in 2022.
The Company does not have any intangible assets at 31 December 2023 (2022: £nil).

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

14722. Customer Liabilities
Group

31 December
2023

31 December
2022

£000

£000

Customer liabilities in respect of deposits

9,244,838

7,144,858

E-money in issue

5,870,251

5,411,555

Customer deposits

15,115,089

12,556,413

Customer liabilities in respect of commodities
Customer liabilities before changes in fair value
Changes in the fair value of hedged liabilities in portfolio hedges of interest rate risk
Total customer liabilities

104,548

94,484

15,219,637

12,650,897(21,669)(57,709)

15,197,968

12,593,188

The Company does not have any customer liabilities at 31 December 2023 (2022: £nil).

23. Trade and Other Payables
Group

31 December
2023
Note

31 December
2022

£000

£000

Settlement payables

294,388

59,628Trade payables

22,986

7,263

Accruals

88,62264,256

Other taxation and social security

33,231

10,691

Contract liabilities

49,211

33,243

9,469

9,641

Lease liability

25

Deferred income from reward program
Loans and borrowings
Other payables
Total trade and other payables

26

506

—

26

36

10,8098,003

509,248

192,761

The contract liabilities balance recognised at the beginning of each period is fully released into fee revenue during
the year as these liabilities have a duration of less than one year.
The Company recognises an obligation to the Employee Benefit Trust of £1.0 million at 31 December 2023 (2022:£0.9 million).

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

14824. Provisions for Liabilities

At 1 January 2023
Provided during the year
Amounts used
Unused amounts reversed
Exchange and other movements
At 31 December 2023

Provision for
taxation

Provision for
dilapidation

Other
provisions

Total

£000

£000

£000

£000

12,933

1,918

1,463

16,314

—

2,704

4,208

6,912

(12,761)——(12,761)

—

—

(72)

(72)

(172)

47

(24)

(149)

—

4,669

5,575

10,244The provision for taxation comprises the provisions for settlement of the VAT liability with HMRC, which has been
confirmed and paid during the year.
The Group also provides for property dilapidation for leased office locations. The property dilapidation provision isbased on management's best estimate for the leases to which the Group is party. Uncertainty associated withthese factors may result in the ultimate liability being different from the reported provision. Dilapidation provisions
are expected to be utilised within one to five years.
Other provisions include provisions recognised for any litigation, arbitration, or regulatory matters that the Group is
involved in as well as the provision for undrawn commitments.
The group and its subsidiaries operate in highly regulated environments and are subject to regulatory scrutiny andlegal proceedings arising in the ordinary course of business. Any associated costs are provided for at 31 December
2023.
The Company does not have any provisions for liabilities at 31 December 2023 (2022: £nil).

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

14925. Lease Liability
Lease liabilities primarily represent leases for office locations.
Lease liability

Group

£000
At 1 January 2023

9,641

New leases entered into during the year

5,808

Lease payments made in the year

(6,034)

Unwinding of discount430

Impact of movement of foreign exchange rates

(200)

Other

(176)

At 31 December 2023

9,469

At 1 January 2022

14,246

New leases entered into during the year

747

Lease payments made in the year

(5,639)Unwinding of discount550

Impact of movement of foreign exchange rates

58

Other

(321)

At 31 December 2022

9,641

The Group recognised £2.0 million in lease expense related to short-term and low-value assets for the year ended
31 December 2023 (2022: £2.7 million).

26. Loans and Borrowings
Group

31 December
2023

31 December
2022

£000

£000

Secured——Unsecured

26

36

Total loans and borrowings

26

36

Analysed into:
Non-current liabilities——

Current liabilities

26

36

Total loans and borrowings

26

36

In April 2023, Revolut Ltd entered into a £75.0 million liquidity facility with an external lender to provide
diversification in funding as the business grows globally. The facility has not been drawn and was terminated in
November 2023. In January 2024, Revolut Ltd fully satisfied a charge in relation to the liquidity facility. The sharecapital of Revolut NewCo UK Ltd had been provided as a security for the Agreement and cancelled uponsatisfaction of the charge in January 2024.
The Company does not have any loans and borrowings at 31 December 2023 (2022: £nil).

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

15027. Share CapitalGroup and Company

31 December
2023

31 December
2022

£

£

32,396,553 (2022: 32,342,358) ordinary shares

0.32

3.23

6,044,294 (2022: 6,044,294) ordinary shares D

0.06

0.60

4,828,923 (2022: 4,828,923) ordinary shares E

0.05

0.48

1,695,374 (2022: 1,695,374) ordinary shares F

0.02

0.17

1,770,754 (2022: 1,770,754) ordinary shares G

0.02

0.18

12,508,401 (2022: 12,508,401) ordinary shares H

0.12

1.25

Total share capital

0.59

5.91

Allotted, called up, and fully paid

At 31 December 2023, all shares have a nominal value of £0.00000001 each. This follows a capital reduction
carried out by the Company in January 2023 which reduced the nominal value of each of the Company's sharesfrom £0.0000001 to £0.00000001.

1 Jan
2022

SharesissuedSharesconverted

Share
options
exercised

31 Dec2022

SharesissuedSharesconverted

Share
options
exercised

31 Dec
2023

000s

000s

000s

000s

000s

000s

000s

000s

000s

ordinary shares

32,261——

81

32,342

5—

49

32,396

ordinary shares D

6,044

—

—

—

6,044

—

—

—

6,044

ordinary shares E

4,829

—

—

—

4,829

—

—

—

4,829

ordinary shares F

1,696

—

—

—

1,696

—

—

—

1,696

ordinary shares G

1,771

—

—

—

1,771

—

—

—

1,771

ordinary shares H

12,508———12,508———12,508

Total shares

59,109——81

59,1905—

49

59,244Rights attaching to the shares — income
All Eligible Shares (all shares in the capital of the Company except for G Shares and H Shares) shall rank pari passu
in respect of dividends and dividends shall be paid to the Eligible Shareholders pro rata according to the number of
Eligible Shares held by each Eligible Shareholder respectively. The G Shares and H Shares shall not confer any
rights to participate in dividends.
Rights attaching to the shares — capital
On a return of capital, on a liquidation, reduction of capital or otherwise (including following an Asset Sale), thesurplus assets of the Company remaining after payment of its liabilities:
First, (i) £1 in aggregate to the holders of G Shares (as a class), (ii) £1 in aggregate to the holders of H Shares (as aclass) and (iii) £1 in aggregate to the holders of Deferred Shares (as a class), in each case on a pro rata basis; andSecondly, pro rata to the holders of Ordinary Shares and Ordinary Series Shares according to the number of
Shares held by each Shareholder respectively (in the case of the Ordinary Series Shares (the Ordinary D, Ordinary
E and Ordinary F Shares), as though they had been fully converted into Ordinary Shares, which shall apply, mutatis
mutandis).

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

151

In the event of a Sale, the proceeds of such Sale (net of any costs associated with such Sale) (Net Sale Proceeds)
shall, save in respect of any Shares not sold in connection with that Sale, be distributed between the Shareholders
as follows:First, to each Ordinary F Shareholder, in priority to all other Shareholders, an amount equal to the Subscription
Price for each Ordinary F Share held (as if the Ordinary F Shares constituted the same class of Shares) plus any
arrears or accruals of dividend (if any) on the Ordinary F Shares (as the case may be) due or declared but unpaid
down to the date of the proceeds of such Sale being returned, provided that if there are insufficient Net Sale
Proceeds to pay such amounts to all Ordinary F Shareholders, in full, the available Net Sale Proceeds shall be
distributed to the Ordinary F Shareholders in proportion to the Subscription Price of the Ordinary F Shares held bythem and arrears or accruals of dividend due to them respectively;
Second, to each Ordinary D/E Shareholder, in priority to all other Shareholders other than Ordinary F Shareholders,
an amount equal to:1.

the Subscription Price for each Ordinary D/E Share held (as if the Ordinary D/E Shares constituted thesame class of Shares) plus

2.

any arrears or accruals of dividend (if any) on the Ordinary D/E Shares (as the case may be) due or
declared but unpaid down to the date of the proceeds of such Sale being returned, provided that3.

if there are insufficient Net Sale Proceeds to pay such amounts to all Ordinary D/E Shareholders, in full, theavailable Net Sale Proceeds shall be distributed to the Ordinary D/E Shareholders in proportion to the
Subscription Price of the Ordinary D/E Shares held by them and arrears or accruals of dividend due tothem respectively ((i) and (ii), or (iii), as the case may be, being the 'Price Protection Proceeds');

Third, to each Ordinary Shareholder including any Ordinary Shares arising from conversion of the Ordinary Series
Shares, and Vested In-The-Money H Shareholder in proportion to the number of Ordinary Shares and Vested InThe-Money H Shares held by them, respectively, as if such Ordinary Shares, and Vested In-The-Money H Sharesconstituted the same class of Shares up to such amount of the remaining Net Sale Proceeds as is less than orequal to the First Hurdle Amount;
Fourth, any amount of the Net Sale Proceeds which exceeds the First Hurdle Amount and is less than or equal to
the Second Hurdle Amount (for the avoidance of doubt, if there is no Second Hurdle Amount, this paragraph shallnot apply, and instead paragraph immediately below shall apply) shall be distributed among the Ordinary
Shareholders (including any Ordinary Shares arising from conversion of the Ordinary Series Shares), the Vested G
First Hurdle Shareholders and the Vested In-The-Money H Shareholders in the proportion that the aggregate
number of Ordinary Shares, Vested G First Hurdle Shares and Vested In-The-Money H Shares held by each holder
bears to all of the Ordinary Shares, Vested G First Hurdle Shares and Vested In-The-Money H Shares then in issue;
Then, the following step to be applied for each Nth Hurdle Amount which has been set in respect of the tranche of
G Shares, starting with the Second Hurdle Amount (if any): any amount of the Net Sale Proceeds which exceeds
the Nth Hurdle Amount and is less than or equal to the N+1th Hurdle Amount shall be distributed among theOrdinary Shareholders (including any Ordinary Shares arising from conversion of the Ordinary Series Shares),
Vested G First Hurdle Shareholders to Vested G Nth Hurdle Shareholders (inclusive), and Vested In-The-Money H
Shareholders in the proportion that the aggregate number of Ordinary Shares, Vested G First Hurdle Shares to
Vested G Nth Hurdle Shares, and Vested In-The-Money H Shares held by each holder bears to all of the Ordinary
Shares, Vested G First Hurdle Shares to Vested G Nth Hurdle Shares, and Vested In-The-Money H Shares then inissue;
Next, any amount of the Net Sale Proceeds which exceeds the Maximum Hurdle Amount (which, for the avoidanceof doubt, shall be the First Hurdle Amount if no other Hurdle Amounts have been set) shall be distributed among
the Ordinary Shareholders (including any Ordinary Shares arising from conversion of the Ordinary Series Shares),
Vested G Shareholders and Vested In-The-Money H Shareholders in the proportion that the aggregate number ofOrdinary Shares, Vested G Shares, and Vested In-The-Money H Shares held by each holder bears to all of theOrdinary Shares, Vested G Shares, and Vested In-The-Money H Shares then in issue; and finally, nothing, unlessthe holders of each Ordinary Share (including any Ordinary Shares arising from conversion of the Ordinary Series
Shares), Vested G Share, and Vested In-The-Money H Share receive proceeds of £1,000,000 or more per share, in

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

152which case the holders of the Deferred Shares (as a class) shall be entitled to receive £1 in aggregate, on a pro
rata basis.
Rights attaching to the shares — Conversion of Ordinary Series Shares
Immediately on the request in writing, at any time, by an Ordinary Series Shareholder, such number of his Ordinary
Series Shares as such Ordinary Series Shareholder shall specify on the date of such request shall automatically beconverted into and re-designated as Ordinary Shares at the rate of one Ordinary Share for every Ordinary Series
Share (as adjusted from time to time as provided herein, the 'Conversion Rate').
Rights attaching to the shares — Conversion of Ordinary D Shares
All of the fully paid Ordinary D Shares then in issue shall automatically be converted into and re-designated as
Ordinary Shares at the Conversion Rate immediately upon the request in writing of the relevant majority or theoccurrence of a Listing.
Rights attaching to the shares — Conversion of Ordinary E Shares
All of the fully paid Ordinary E Shares then in issue shall automatically be converted into and re-designated as
Ordinary Shares at the Conversion Rate immediately upon the request in writing of the relevant majority or theoccurrence of a Listing.
Rights attaching to the shares — Conversion of Ordinary F Shares
All of the fully paid Ordinary F Shares then in issue shall automatically be converted into and re-designated as
Ordinary Shares at the Conversion Rate immediately upon the request in writing of the relevant majority or theoccurrence of a Listing.
Rights attaching to the shares — Conversion of G Shares
Unless otherwise determined by the Board at any time prior thereto, all of the fully paid G Shares then in issue shall
automatically be converted into and re-designated as Ordinary Shares immediately upon the occurrence of a
Listing.
Rights attaching to the shares — Conversion of H Shares
Unless otherwise determined by the Board at any time prior thereto, all of the fully paid H Shares then in issue shall
automatically be converted into and re-designated as Ordinary Shares immediately upon the occurrence of a
Listing.
The Board shall, in such circumstances as are stated in any particular Award Letter pursuant to which H Shares
have been awarded (and subsequently subscribed for or the beneficial interest therein acquired), have the right todetermine that the H Shares (or relevant number thereof) held by an H Shareholder (and/or his Permitted
Transferees, if applicable) shall convert into Deferred Shares (on the basis of one Deferred Share for eachapplicable H Share). Upon such conversion into Deferred Shares, which shall take place on the date of the Board’s
determination (the 'H Share Conversion Date'), the Company shall be entitled to enter the H Shareholder (and/or
his Permitted Transferees, if applicable) on the register of members of the Company as the holder of theappropriate number of Deferred Shares as from the H Share Conversion Date. Upon the H Share Conversion Date,
the H Shareholder (and/or his Permitted Transferees, if applicable) shall deliver to the Company at its registeredoffice the shares certificate(s) (to the extent not already in the possession of the Company) or an indemnity forlost certificate in a form acceptable to the Board for the H Shares so converting, and upon such delivery theCompany shall be entitled to either (a) effect a transfer from the relevant H Shareholder to the Employee Trusteeof all such Deferred Shares in consideration for an aggregate sum of one penny and, upon such transfer becoming
effective the relevant Deferred Shares shall be automatically re-designated as H Shares shall apply mutatis
mutandis to such transfer); or (b) issue to such H Shareholders (and/or their Permitted Transferees, if applicable)
share certificate(s) for the number of Deferred Shares resulting from the relevant conversion and any remaining H
Shares.

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153

Rights attaching to the shares — Conversion of Deferred Shares
Unless otherwise determined by the Board at any time prior thereto, all of the Deferred Shares then in issue shall
automatically be converted into and re-designated as Ordinary Shares immediately upon the occurrence of a
Listing.
Rights attaching to the shares — Votes in general meeting and written resolutions
The Ordinary Series Shares shall confer on each holder of Ordinary Series Shares the right to receive notice of and
to attend, speak and vote at all general meetings of the Company and to receive and vote on proposed written
resolutions of the Company.
The Ordinary Shares shall confer on each holder of Ordinary Shares the right to receive notice of and to attend,
speak and vote at all general meetings of the Company and to receive and vote on proposed written resolutions of
the Company.
The G Shares and H Shares shall not entitle the holders of them to receive notice of, to attend, to speak or to voteat any general meeting of the Company nor to receive or vote on, or otherwise constitute an eligible member forthe purposes of, proposed written resolutions of the Company.
The Deferred Shares (if any) shall not entitle the holders of them to receive notice of, to attend, to speak or to voteat any general meeting of the Company nor to receive or vote on, or otherwise constitute an eligible member forthe purposes of, proposed written resolutions of the Company.
Share history
On 28 April 2022, the following shares were allotted: 32,196,878 ordinary shares of £0.0000001 each; 6,044,294
Ordinary D shares of £0.0000001 each; 4,828,923 Ordinary E shares of £0.0000001 each; 1,695,374 Ordinary F
shares of £0.0000001 each; 1,770,754 Ordinary G shares of £0.0000001 each; 12,508,401 Ordinary H shares of£0.0000001 each, in connection with the insertion of the Company as the ultimate parent company in the Group.
On 31 January 2023, the share capital of the Company was reduced by reducing the nominal value of each of
the Company's shares from £0.0000001 to £0.00000001.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

15428. Other Reserves
Group

Foreignexchangereserve

Share-based
payment
reserveNet
investment inforeign
operation
reserve

Financialinvestment
reserve

Own shares
held in
Employee
Benefit Trust*

Total

£000

£000

£000

£000

£000

£000

(9,492)

114,903

3,365

(763)

(445)

107,568

Equity-settled share-based
payment charge—

39,049———39,049Foreign currency translation
adjustment

17,442————

17,442

Revaluation loss on financial
investment

—

—

—

(12,825)—(12,825)

Cumulative hedge
effectiveness reserve
movement——(2,090)——(2,090)Purchase of own shares by
Employee Benefit Trust

—

—

—

—

(446)

(446)

Tax impact of changes to otherreserves—

43,364

—

3,444

—

46,808At 31 December 2022

7,950

197,316

1,275(10,144)(891)

195,506

At 1 January 2023

At 1 January 2022

7,950

197,316

1,275(10,144)(891)

195,506

Equity-settled share-based
payment charge—

45,130———45,130Foreign currency translation
adjustment(10,222)

—

—

—

—

(10,222)

Revaluation gain on financial
investment

—

—

—

10,550—10,550

Cumulative hedge
effectiveness reserve
movement

—

—

—

—

—

—

Purchase of own shares by
Employee Benefit Trust

—

—

—

—

(143)

(143)

Tax impact of changes to otherreserves
At 31 December 2023

—

2,488

—

(2,822)—(334)(2,272)244,934

1,275(2,416)(1,034)240,487

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155

Company

At 1 January 2022

Share-based
payment
reserve

Own shares
held in Employee
Benefit Trust*

Total

£000

£000

£000

—

—

—

Transfer of reserve on reorganisation

137,695(445)

137,250

Equity-settled share-based payment charge

16,300—16,300Purchase of own shares within Employee Benefit Trust

—

(446)

(446)

Tax impact of changes to other reserves

—

—

—

At 31 December 2022

153,995(891)

153,104

At 1 January 2023

153,995(891)

153,104

Equity-settled share-based payment charge

45,087—45,087

—

(143)

(143)

Purchase of own shares within Employee Benefit TrustTax impact of changes to other reserves
At 31 December 2023

—

—

—

199,082(1,034)

198,048* The Group and Company consolidate one share trust. The share reserve represents the cost of shares in the Revolut Group
Employee Benefit Trust (Fiduchi), which are held for the purposes of fulfilling obligations in respect of the Group’s future shareawards. As of year-end, the numbers of shares held by the trust are as follows:
31 December 2023

31 December 2022

SharesAverage price

SharesAverage pricein '000£

in '000£

ordinary G shares

105

8.48

83

10.33

ordinary H shares

525

0.27

142

0.27

Total shares

630

225

The following describes the nature and purpose of the reserves within equity.
Foreign exchange
reserve

The foreign exchange reserves represents the cumulative foreign currency translation movementon the assets and liabilities of the Group’s international operations at year-end exchange rates.

Share-based payment
reserve

The share-based payment reserve records the cumulative charge to equity in respect of equitysettled share-based payments.

Net investment in foreign The net investment in foreign operation reserve represents the effective portion of the gains oroperation reserve
losses on the retranslation of investments into foreign operations due to exchange rate risks.
Financial investment
reserve

The financial investment reserve includes unrealised gains or losses in respect of financial
instruments measured at fair value through other comprehensive income.

Own shares held in
Employee Benefit TrustThis reserve represents the value of shares issued by the Company that are held by the Employee
Benefit Trust (Fiduchi) which are deducted from equity.

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156

29. Share-Based Payments
The Group issues equity-settled share-based payment awards to certain employees which are subject to service
and vesting considerations and are settled for shares of the Company. Equity-settled share-based payments aremeasured at fair value (excluding the effect of non-market performance vesting conditions) at the date of grant.
The fair value of the options determined at the grant date of the equity-settled share-based payments is expensed
on a graded basis over the vesting period, based on the Group's estimate of the number of awards that will
eventually vest and adjusted for the effect of non-market-based vesting conditions.
2022 and 2023 scheme and parent company change
During 2022, a change in the legal structure of Revolut occurred; the ultimate parent company of the Group haschanged to Revolut Group Holdings Ltd instead of Revolut Ltd. With this change, all previously awarded grants’
underlying entity have been novated from Revolut Ltd to Revolut Group Holdings Ltd.
In 2022 and 2023, the Group issued share options under the Unapproved Options Plan (UOP) for both UK and nonUK employees of the Group and issued no share options under the Company Stock Option Scheme (CSOP) plan.
Furthermore, Restricted Stock Units (RSUs) were issued to employees under US entities.
The fair value of the options granted to employees during the years 2022 and 2023 has been determined utilizing
an options pricing model, which encompasses the Black-Scholes methodology. It's important to note that the strikeprice of the options given to employees in 2022 and 2023 was almost zero, making their fair value similar to that ofordinary shares.
Options granted have varying vesting schedules depending on the reason for the grant — for example, Joining
Bonus, Referral Bonus, Promotion Bonus, or Performance Bonus. The main vesting schedules are: (i) a four-year
vesting schedule with 25% vesting on each anniversary; (ii) a two-year vesting schedule with 50% upfront and 25%
vesting annually over the subsequent two years; and (iii) a two-year vesting schedule where 1/24th vests eachmonth. Employees are required to remain in employment with the Group until the vesting period has elapsed;otherwise, the awards lapse. Options issued under the UOP expire after ten years whereas RSUs expire after
seven years.
2021 scheme
In 2021, the Group introduced growth shares scheme to replace the CSOP and UOP prospectively. Employees
having stock options under CSOP and UOP were eligible to voluntarily exchange their existing holdings in growthshares.
Unlike options, growth shares entitle the shareholder to a capital return once the value of the Company exceeds a
pre-set value per share (the 'Hurdle Price') set by independent valuers. Shares granted will be held in thecompany-held trust until exercised.
Growth shares granted as a performance bonus vest according to a schedule with 50% vesting on the grant dateand 25% vesting annually on the anniversary of the grant date for the next two years. Growth shares granted as asign-on bonus or promotion will vest on an annual basis over four years (i.e. 25% at each year-end).
2019 and 2020 CSOP and unapproved share option schemes
In 2019, the Group operated two share options schemes. The first is an HMRC-approved Company Share Option
Scheme (CSOP) plan, for UK employees, and the second is an Unapproved Options Plan (UOP), for the non-UK
employees.
In 2020, the Group issued share options under the UOP for both UK and non-UK employees of the Group andissued no share options under the CSOP.
The options are granted with a fixed exercise price, are exercisable after they have vested, and expire after ten
years.

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157

Valuation assumptions
Key assumptions used in determining the values of options are shared below.
2023
Model

2022

Option Pricing Model Option Pricing Model

Expected volatility
Expected term (years)
Risk-free rate
Expected dividend yields

40-50%

30-40%

1.25 -— 1.67

1 — 1.5 years

4.29% — 5.35%

1.9% — 4.3%

nil

nil

Expected volatility is derived from observed volatility from comparable companies. Calculating the fair value of
options in private companies requires making highly subjective assumptions including the methodology used.
These assumptions can materially affect the fair value of share-based payments.
Reconciliation of outstanding share-based payment awards
A reconciliation of share option movements over the years ended 31 December 2023 and 2022 is shown below.
Weighted average
exercise price
Outstanding at the beginning of the year

Number

Weighted average
exercise price

2023

2023

2022

2022

0.49

1,490,245

0.75

1,493,693

NumberGranted during the year—

380,281—

210,873

Exercised during the year

1.74

(48,922)

2.47(79,716)

Sold or forfeited during the year

0.41

(68,037)

1.46(134,605)

Outstanding at the end of the year

0.32

1,753,567

0.49

1,490,245

Exercisable at the end of the year

0.38

1,450,805

0.53

1,203,191

Fair values have been calculated by independent accounting advisors at the date of grant of each share award.
The estimated weighted average fair value of share options granted during the year at the measurement date was£159.11 (2022: £166.09). The estimated weighted average share price at the date of exercise for share options
exercised in 2023 was £167.22 (2022: £161.99). A 10% change in the fair value of the share valuation would resultin a £4.5 million change in share-based payments expense.
A reconciliation of growth share movements over the years ended 31 December 2023 and 2022 is shown below.
NumberNumber

2023

2022*

14,279,155

14,279,155

Granted during the year——

Exercised during the year——

Outstanding at the beginning of the year

Sold or forfeited during the year
Outstanding at the end of the year——

14,279,155

14,279,155*The number of growth shares outstanding during the year ended 31 December 2022 has been restated to reflect the impact ofgrowth shares reacquired by the Employee Benefit Trust from certain former employees of the Group and the impact of aconversion of growth shares into ordinary shares not previously recognised.

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

158

The outstanding options' weighted average remaining contractual life by exercise price as of 31 December 2023 isshown below:

Pool

Exercise Price (£)

Weighted average remaining
contractual life (years)

1

0.00

8.23

2

0.000001

3.07

3

0.03

3.17

4

0.03

4.23

5

0.03

3.40

6

0.10

4.86

7

0.29

2.18

8

0.32

2.52

9

0.50

5.51

10

0.75

5.89

11

13.93

5.77

12

22.34

6.60

13

32.37

7.86

Total

7.99

Impact on Consolidated Statement of Comprehensive Income
The total share-based payment expense recognised in administrative expenses in the Consolidated Statement ofComprehensive Income is as follows.
Group
Equity-settled share-based payment charge

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

2023

2022

£000

£000

45,13039,049159

30. Financial Instruments
30.1. Financial instrument by category
The following table shows the carrying amount of each of the categories of financial instruments at the end of thereporting period.
Group

31 December
2023

31 December
2022

£000

£000

389,866

1,712,292

28,097

7,681

417,963

1,719,973

12,827,654

10,581,018

Debt instruments

2,103,181

982,367

Securities purchased under resale agreements (reverse repos)

374,002—

Government loans

369,007—

Short-term deposits

22,456—

Trade and other receivables

423,940

287,168

Financial assets measured at fair value through OCI (FVOCI)
Government bonds
Financial assets mandatorily measured at fair value through profit or loss (FVTPL)
Derivative financial assets
Total financial assets measured at fair value
Financial assets measured at amortised cost
Cash and cash equivalents

Loans and advances to customers
Total financial assets measured at amortised cost

527,593

203,580

16,647,833

12,054,133

Financial liabilities measured at fair value through profit or loss (FVTPL) designated as such upon initial recognition
Customer liabilities in respect of commodities(104,548)(90,017)

Financial liabilities mandatorily measured at fair value through profit or loss (FVTPL)
Derivative financial liabilities(66,333)(94,484)

Total financial liabilities measured at fair value(170,881)(184,501)(15,093,420)(12,498,704)(426,300)(148,827)(15,519,720)(12,647,531)

Financial liabilities measured at amortised cost
Customer liabilities
Trade and other payables
Total financial liabilities measured at amortised cost

The Company does not have any financial instruments at 31 December 2023 (2022: £nil).
Customer liabilities measured at fair value through profit or loss consist of Group-only customer liabilities inrespect of contracts relating to the commodities offering.
Customer liabilities at amortised cost consists of Group-only customer liabilities in respect of deposits (EEA) and emoney.

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160

30.2. Financial instruments measured at fair value
The following table analyses financial instruments measured at fair value at the reporting date, by the level in thefair value hierarchy into which the fair value measurement is categorised. The amounts are based on the values
recognised in the Consolidated Statement of Financial Position.
Total

Level 1

Level 2

Level 3

£000

£000

£000

£000

389,866

389,866——

Derivative financial assets

28,097—28,097—

Total financial assets measured at fair value

417,963

389,866

28,097—

Customer liabilities in respect of commodities(104,548)(104,548)——

Derivative financial liabilities(66,333)—(66,333)—

Total financial liabilities measured at fair value(170,881)(104,548)(66,333)—

Total financial instruments measured at fair value

247,082

285,318(38,236)—

1,712,292

1,712,292

—

—

7,681

—

7,681

—

1,719,973

1,712,292

7,681

—

Customer liabilities in respect of commodities(94,484)(94,484)——

Derivative financial liabilities(90,017)—(90,017)—Group

At 31 December 2023
Financial assets measured at fair value
Government bonds

Financial liabilities measured at fair value

At 31 December 2022
Financial assets measured at fair value
Government bonds
Derivative financial assets
Total financial assets measured at fair value
Financial liabilities measured at fair value

Total financial liabilities measured at fair value(184,501)(94,484)(90,017)—

Total financial instruments measured at fair value

1,535,472

1,617,808(82,336)—

The Company does not have any financial instruments measured at fair value at 31 December 2023 (2022: £nil).
Government bonds represent holdings in investment in High Quality Liquid Assets (HQLA). These investments areaccounted for at fair value through other comprehensive income (FVOCI). Restricted bonds held in respect ofcustomers represent safeguarded funds related to the Group’s regulated e-money services. Please refer to Note 7
for recycling to profit or loss as interest income for the year. At 31 December 2023, all government bonds
measured at FVOCI are invested with the US Treasury. During the year, the Group also sold FVOCI debt
instruments with a principal value of £400 million. Additionally, out of the Group’s FVOCI debt portfolio, instrumentswith a principal of £1,876 million matured. In relation to this, the Group transferred £17.4 million unrealised gains
from OCI to the Consolidated Statement of Comprehensive Income.
For assets and liabilities that are recognised in the consolidated financial statements at fair value on a recurring
basis, the Group determines whether transfers have occurred between levels in the fair value hierarchy by reassessing categorisation (based on the lowest level input that is significant to the fair value measurement as awhole) at the end of each reporting period. There were no transfers between the different levels during the current
or prior reporting period.

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161

Valuation techniques
Derivative financial instruments are valued using net present valuation techniques that utilise observable market
inputs.
Foreign exchange contracts
Foreign exchange (FX) contracts include foreign exchange forward and swap contracts. A foreign exchange swap
relate to contracts taken out by the Group with other counterparties (financial institutions) in which the Group pays
a specified amount in one currency and receives a specified amount in another currency. FX swaps are typicallygross-settled. Foreign currency forwards are contractual agreements to buy or sell a specified amount of foreign
currency at a specific price and date in the future. Forwards are customised contracts transacted in the over-thecounter market. The Group has credit exposure to the counterparties of forward contracts, as well as market risk
exposure.
These instruments are valued by either observable foreign exchange rates and observable or calculated forward
points. With the exception of contracts where a directly observable rate is available which are disclosed as Level 1,
the Bank classifies foreign exchange contracts as Level 2 financial instruments.
All derivative financial instruments between Group entities represent foreign currency swap contracts valued using
direct and indirect observable inputs.
Interest rate derivatives
Interest rate derivatives include interest rate swaps. Interest rate swaps relate to contracts taken out by the Group
with other counterparties (financial institutions) in which the Group either receives or pays a floating rate ofinterest in return for paying or receiving, respectively, a fixed rate of interest. The payment flows are typicallynetted against each other, with the difference being paid by one party to the other. Most swaps are fully
collateralised and require daily margin settlement, which significantly reduces the Group's credit risk.
The valuation techniques include forward pricing and swap models, using present value calculations by estimating
future cash flows and discounting them with the appropriate yield curves incorporating funding costs relevant forthe position. These contracts are generally Level 2.
There were no changes to the valuation techniques during the period.
Financial instruments not measured at fair value
The carrying values of financial instruments not measured at fair value are a reasonable approximation of their fairvalue. The following table sets out the fair values of financial instruments not measured at fair value and analyses
them by the level in the fair value hierarchy into which each fair value measurement is categorised.

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162

Group

Total

Level 1

Level 2

Level 3

£000

£000

£000

£000

At 31 December 2023
Financial assets measured at amortised cost
12,827,654—

12,827,654—

Debt instruments

2,103,181

2,103,181——

Securities purchased under resale agreements (reverse
repos)

374,002—374,002—

Government loans

369,007—369,007—22,456—

Cash and cash equivalents

22,456—423,940———

527,593

2,103,181

14,017,059

527,593(15,093,420)—(15,093,420)—(426,300)—(416,805)(9,495)(15,519,720)—(15,510,225)(9,495)

10,581,018—

10,581,018—

Bonds with government and financial institutions

982,367

982,367——

Trade and other receivables

287,168—

287,168—

Short-term deposits
Trade and other receivables

423,940

Loans and advances to customers

527,593
16,647,833

Total financial assets measured at amortised cost

Financial liabilities measured at amortised cost
Customer liabilities
Trade and other payables
Total financial liabilities measured at amortisedcost

At 31 December 2022
Financial assets measured at amortised cost
Cash and cash equivalents

Loans and advances to customers
Total financial assets measured at amortised cost

203,580——

203,580

12,054,133

982,367

10,868,186

203,580(12,498,704)—(12,498,704)—(148,827)—(139,150)(9,677)(12,647,531)—(12,637,854)(9,677)

Financial liabilities measured at amortised cost
Customer liabilities
Trade and other payables
Total financial liabilities measured at amortised
cost

The Company does not have any financial instruments not measured at fair value at 31 December 2023 (2022:£nil).

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163

30.3. Treasury investments measured at amortised costGroup

31 December
2023

31 December
2022

£000

£000

69,915—Austria

14,445—

Canada90,423—

Debt instruments measured at amortised cost with financial institutions
Australia

Finland24,98025,073

France157,33199,750Germany

39,087

26,275

Ireland

68,687—

Japan

20,722—

Spain

105,61770,265

Sweden19,77820,154

Switzerland

25,261

17,668

United Kingdom

186,201

88,883

United States
Total debt instruments measured at amortised cost with financial institutions

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

82,09883,644

904,545431,712164

Group31 December
2023

31 December
2022

£000

£000

Belgium

269,853

87,876

France30,945616

Germany

161,516

139,661—

62,261

22,396—

Debt instruments measured at amortised cost with government institutions

Luxembourg
Lithuania
Netherlands
Spain
Sweden474

499

169,035

91,923

3,198

3,314

Supranational

85,685—

United States

157,554

164,586

Total debt instruments measured at amortised cost with government institutions

900,656

550,736

Germany

369,007—

Total government loans

369,007—Spain

374,002—

Total lending under reverse repurchase agreements

374,002—

Australia

16,172

—

India

6,435

—

22,607—

Ireland298,204—

Total asset-backed securities (ABS)298,204—

2,869,021

982,448

(375)

(81)

2,868,646

982,367

Other financial instruments with local government
Government loans

Other financial instruments with financial institutions
Securities purchased under resale agreements (reverse repos)

Short-term deposits

Total short-term deposits
Other financial instruments held under securitization
Asset-backed securities (ABS)

Total gross carrying amount of treasury investments measured at amortised cost
Loss allowance
Total treasury investments measured at amortised cost

Impairment allowance for treasury investments measured at amortised cost
A reconciliation of changes in the carrying amount and corresponding allowance for expected credit losses bystage for debt instruments measured at amortised cost is shown below:

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165

Stage 1

Gross carrying
amountLossallowance

£000

£000

At 1 January 2023

982,448(81)

Increases due to origination and acquisition

1,886,573(228)

Decreases due to bond maturity——

Net (increase)/decrease due to change in credit risk

—

(66)

2,869,021(375)

Gross carrying
amountLossallowance

£000

£000

At 31 December 2023

Stage 1

At 1 January 2022——

982,448(81)

Decreases due to bond maturity——

Net (increase)/decrease due to change in credit risk——

982,448(81)

Increases due to origination and acquisition

At 31 December 2022

The table below shows the fair value of the debt instruments measured at amortised cost by credit risk, based on
Revolut Banks’ internal credit rating system, twelve-month Basel PD range and year-end stage classification. The
amounts presented are gross of allowance for expected credit losses.
31 December 2023
Stage 1
Internal rating grade

Twelve-month
Basel PD range

Gross carrying
amountLossallowance

%

£000

£000

2,869,021(375)

2,869,021(375)

PerformingHigh grade

0.00% - 0.50%

Total
Coverage ratio

0.01%

31 December 2022
Stage 1
Internal rating grade

Twelve-month
Basel PD range

Gross carrying
amountLossallowance

%

£000

£000

PerformingHigh grade
Total
Coverage ratio

0.00% - 0.50%

982,448(81)

982,448

(81)

0.01%

The Company does not have any financial instruments measured at amortised cost at 31 December 2023 (2022:£nil).

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166

30.4. Derivative financial instruments
Group

At 31 December 2023

At 31 December 2022

Carrying
amountassetsCarrying
amountliabilities

Notional
amountCarrying
amountassetsCarrying
amountliabilities

Notional
amount

£000

£000

£000

£000

£000

£000

Interest rate swaps

127

31,9291,066,735

5,357

50,5982,443,608

Total derivatives in hedge accounting
relationships

127

31,9291,066,735

5,357

50,5982,443,608

—

—

—

—

383

909,729

27,72034,2995,654,706

2,284

39,0263,600,053

250

105

22,150

40

10

1,789

Total derivatives not in hedge accounting
relationships

27,97034,404

5,676,856

2,324

39,4194,511,571

Total derivative financial instruments

28,097

66,333

6,743,591

7,681

90,017

6,955,179

Derivatives in hedge accounting relationships

Derivatives not in hedge accounting relationships
Interest rate swaps
Foreign currency swaps
Foreign exchange forward contracts

The Company does not have any derivative financial instruments at 31 December 2023 (2022: £nil).
The Group enters into foreign currency swap contracts to ensure sufficient liquidity is maintained in all currencies
for operational purposes as well as to optimise yield. The net yield on foreign exchange derivatives presented in
Other income is the return on settlement of the far leg of the foreign currency swaps due to the difference
between the prevailing spot rate and the forward rate at inception (i.e. the 'contractual gain'). During the year
ended 31 December 2023, the net yield on foreign exchange derivatives was £88.5 million (2022: £39.9 million),
this is disclosed in Note 8.
Any movement in foreign exchange rates between inception and maturity relative to the contractually agreed
forward rate at inception results in a foreign currency gain or loss on foreign currency derivatives. During the year
ended 31 December 2023, the foreign exchange gains on foreign currency swaps were £180.6 million (2022: £41.1
million loss); these are predominantly offset by exchange gains and losses incurred on foreign currency
denominated monetary assets and liabilities on the balance sheet. This is disclosed on a net basis with all otherforeign exchange gains and losses in Note 10 under the impact of foreign exchange rates line.
Note
Group
Net yield on foreign exchange derivatives

31 December
2022

£000

£000

88,51439,877

Fair value movement on foreign exchange derivatives

180,582(41,076)

Total gain/(loss) on foreign exchange derivatives

269,096(1,199)

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31 December
2023

167

30.5. Hedge accounting
In the Group’s core deposits macro fair value hedge, macro hedge accounting is used to recognise fair valuechanges related to changes in interest rate risk in non-interest-bearing core deposit accounts and therefore
reduce the profit or loss volatility that would otherwise arise from changes in the fair value of the interest rate
swaps alone.
Applying fair value hedge accounting enables the Group to reduce fair value fluctuations of fixed rate financial
liabilities. From a hedge accounting point of view, the Group designates the hedged risk as the exposure tochanges in the fair value of an identified portion of recognised customer liabilities (core deposit) that could affectprofit or loss.
The table below sets out the accumulated fair value adjustments arising from the corresponding continuing hedge
relationships.

Customer liabilities inrespect of deposits

At 31 December 2023

At 31 December 2022

Accumulated
amount of fair
Carrying amountvalue
of hedged items
adjustments on
the hedged items

Accumulated
amount of fair
Carrying amountvalue
of hedged items
adjustments on
the hedged items

£000

£000

£000

£000

(1,020,583)

21,669(2,321,605)

57,709Line item in theConsolidated Statementof Financial Position

Customer liabilities

The following table provides information about the hedging instruments included in the derivative financial assets
and liabilities line items of the Group's Consolidated Statement of Financial Position:

At 31 December 2023

Interest rate swap –hedge of core deposits

Carrying

At 31 December 2022

Notional
amountamount (clean)

Notional
amountamount (clean)

£000

£000

£000

£000

1,066,735(19,361)

2,443,608(50,598)

Line item in theConsolidated Statementof Financial Position

Carrying

Derivatives assets/
derivative liabilities

The below table sets out the outcome of the Group's hedging strategy to changes in the fair value of the hedged
items and hedging instruments, used as the basis for recognising ineffectiveness.

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31 December 2023

Gains/(losses) attributable to the hedged riskNet
cumulative IneffectivenessLine item in thefair value
recognised
Consolidated Statement
gain/(loss) during the year of Comprehensive Income

Macro fair value hedge

Hedgeditems

Hedging
instruments

Hedging
instruments

£000

£000

£000

£000

Interest rate
swaps

21,669(19,361)

2,308(4,803)Hedged items
Customer liabilities
in respect ofdeposits

Other operating expense

The total net loss on changes in the fair value on hedging derivatives and hedged items recognised during the year
ended 31 December 2023 was £5.1 million. This total includes the clean fair value movement on interest rate
swaps not designated as hedges, which was a £0.3 million loss.
31 December 2022

Gains/(losses) attributable to the hedged risk
Macro fair value hedge

Hedgeditems

Hedging
instruments

Hedging
instruments

£000

£000

Hedged items

Customer liabilities
in respect ofdeposits

Interest rate
swaps

57,709(50,598)

Net
cumulative IneffectivenessLine item in thefair value
recognised
Consolidated Statement
gain/(loss) during the year of Comprehensive Income

£000

7,111

£000

7,111

Other income — Net gain
on changes in the fairvalue of hedging
derivatives and hedged
items

The total net gain on changes in the fair value on hedging derivatives and hedged items recognised during the year
ended 31 December 2022 was £7.4 million. This total includes the clean fair value movement on interest rate
swaps not designated as hedges, which was a £0.3 million gain.
Hedge ineffectiveness can arise from:• Differences in timing of cash flows of hedged items and hedging instruments• Derivatives used as hedging instruments having a non-nil fair value at the time of designation• The effect of changes in counterparties’ credit risk on the fair values of hedging instruments or hedged
items

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The maturity profile of the Group's hedging instruments used in macro fair value hedge relationships is as follows.
31 December 2023
Less than One to three
one month
monthsInterest rate swaps in hedge
accounting relationships
Notional amount
Average rate

Three totwelvemonths

One to five
years

Over five
years

Total

£000

£000

£000

£000

£000

£000

—

—

616,735

450,000—

1,066,735

Less than One to three
one month
monthsThree totwelvemonths

One to five
years

Over five
years

Total

2.48 %

31 December 2022

Interest rate swaps in hedge
accounting relationships
Notional amount
Average rate

£000

£000

£000

£000

£000

£000

—

—

1,372,405

1,071,203—

2,443,608

2.32 %

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170

31. Financial Risk Management
The Group is exposed to financial risks in the ordinary course of business. The Group divides these risks into thefollowing categories: credit risk, liquidity and funding risk, market risk, and capital risk.

31.1. Credit risk
Credit risk is the risk of financial loss should the Group's borrowers or counterparties fail to fulfil their contractual
obligations in full and on time.
The Group is exposed to various credit risks in the course of its operations. The table below provides a breakdownof the Group's gross carrying amounts, ECLs, and net carrying amounts for these exposures.
The Group is exposed to wholesale credit risk from:• Treasury investments and cash and cash equivalent: the placement of cash and a range of high credit
quality instruments (includes the first six rows in the table below).
• Short-dated receivables due from card schemes and merchant acquirers used to process user card topups and exposures to Crypto counterparties used to facilitate trading (included in 'other assets' in thetable below.
• Derivatives primarily used for hedging foreign exchange and interest rate risk.
The Group is exposed to retail credit risk relating from unsecured personal loans, credit cards, and buy now paylater products across Australia, France, Germany, Ireland, Lithuania, Poland, Romania, Spain, and the United Statesof America. 'Undrawn commitment' in the table below relates to unused limits credit card and buy now pay later
products.
The Group is also exposed to credit risk from negative balances (included in 'other assets' in the table below). Thisoccurs when a user's accounts has negative funds which may arise for a variety of reasons (e.g. insufficient funds
to a pay a subscription fee).
The Company has £25.2 million of trade and other receivables at 31 December 2023 (2022: £0.2 million) included
within its credit risk exposure, as included in 'other assets' in the table below.
To manage credit risk appetite, the Group’s credit risk management policies and procedures require allcounterparties giving rise to credit risk to be assessed at least annually and assigned a credit risk limit
commensurate with their risk profile. The Group’s Credit Risk function monitors adherence to limits and appropriate
management of credit risks where deterioration is identified. Key decisions are subject to review and approval by
the Assets and Liabilities Committee (ALCO).

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31 December 2023

31 December 2022

Gross
carrying
amountECLNet carrying
amountGrosscarrying
amountECLNet carrying
amount

£000

£000

£000

£000

£000

£000

Cash and cash equivalents

12,827,755(101)

12,827,654

10,581,018—

10,581,018

Government bonds held at
FVOCI

389,866—

389,866

1,712,292—

1,712,292

Debt instruments

2,103,405(224)

2,103,181

982,448(81)

982,367

Securities purchased
under resale agreements(reverse repos)*

374,002—374,002———

Government loans

369,007—369,007———

Short-term deposits

22,607(151)

22,456———

Other assets

435,526(11,586)

423,940

310,673(23,505)

287,168

Derivative financial assets

28,097—28,097

7,681

—

7,681

Loans and advances tocustomers

564,513(36,920)

527,593

209,252(5,672)

203,580

Undrawn commitment

97,600(415)

97,18531,500(91)

31,409Total credit risk exposure

17,212,378(49,397)

17,162,981

13,834,864(29,349)

13,805,515* The Group has not recognised a loss allowance on securities purchased under resale agreements (reverse repos) due tocollateral held. The collateral securities consist of AAA ABS and investment grade bonds. Without taking account of any collateral
held or other credit enhancements, the maximum exposure to credit risk of these reverse repurchase agreements at the end of
the reporting period would be £0.1 million.

The tables below, referring to the credit losses on lending and non-lending products, reflect changes of expectedcredit losses (ECL) during the financial year plus the cost of writing-off (fully or partially) assets when they are
deemed uncollectible. During the year, no write-offs were actioned in any retail category nor in treasury
investments, such that the respective figures purely represent changes to the ECL, mostly reflecting the growth ofour book.
Credit losses on lending products
31 December
2023

31 December
2022

£000

£000

Loans including Buy Now Pay Later (BNPL)(28,364)(4,357)

Credit cards(2,885)

(762)

(324)

(61)

(31,573)(5,180)31 December
2023

31 December
2022

Group

Undrawn commitment
Total credit losses on lending products
Credit losses on non-lending products
Group

£000

£000

Treasury investments

(294)

—

Cash and cash equivalents — net change in expected credit losses

(99)

—

Intercompany balances — net change in expected credit losses

(12)

—

Other assets excluding negative customer liabilities

11—

11,908(3,136)

Negative customer liabilities — write-offs (non-fraud)(26,529)(5,322)

Total credit losses on non-lending products(15,015)(8,458)

Negative customer liabilities — net change in expected credit losses

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172

Negative customer liabilities — net change in expected credit losses relates to the net change on the loss
allowance balance on negative customer liabilities.
Negative customer liabilities — write-offs (non-fraud) relates to other write-offs of negative customer liabilities,
including chargebacks.
Credit quality analysis
The following tables set out information about the credit quality of treasury investments (combined carrying valueof financial assets measured at FVOCI and financial assets at amortised cost), and loans and advances tocustomers (split by retail consumer credit product) without taking into account collateral or other credit
enhancement.
An explanation of the terms ‘Stage 1’, ‘Stage 2’ and ‘Stage 3’ is included in Note 4.22.
Key shared risk characteristics used to group financial instruments• For loans (including BNPL) and credit cards, country from which the financial instrument domiciled andinternal credit ratings are used to group financial instruments together for assessment purposes.
• For treasury investments and cash and cash equivalents, external ratings are used to group financial
instruments together for assessment purposes.
31 December 2023
Group

12 months PD

Treasury investments

Stage 1

Stage 2

Stage 3

Total

£000

£000

£000

£000

Grades 1-4

0% - 0.5%

3,244,756

14,131—

3,258,887

Grades 5-6

0.5% - 1.3%

—

—

—

—

Grade 7-8

1.3% - 3%

—

—

—

—

Grade 93% - 5%

—

—

—

—

Grade 10

5% - 8%

—

—

—

—

Grade 11+8% - 100%

—

—

—

—

3,244,756

14,131—

3,258,887

Gross carrying amount

(342)

(33)

—

(375)

Carrying amount

3,244,414

14,098—3,258,512

ECL coverage %0.011%

0.234%—%

0.012%

Stage 1

Stage 2

Stage 3

Total

£000

£000

£000

£000

ECL

Group

12 months PD

Loans (including BNPL)
Grades 1-4

0% - 0.5%

58,650118—

58,768Grades 5-6

0.5% - 1.3%

87,708

1,727—

89,435

Grade 7-8

1.3% - 3%

90,59431,907—

122,501

Grade 93% - 5%75,481

11,627—

87,108Grade 10

5% - 8%59,9098,058—

67,967

Grade 11+8% - 100%

Gross carrying amount

44,94531,794

20,242

96,981

417,287

85,231

20,242522,760(8,801)(7,755)(16,553)(33,109)

Carrying amount

408,486

77,476

3,689

489,651

ECL coverage %2.109%

9.099%

81.776%6.333%

ECL

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173

Group12 months PD

Credit cards

Stage 1

Stage 2

Stage 3

Total

£000

£000

£000

£000

Grades 1-4

0% - 0.5%

6,931

—

—

6,931

Grades 5-6

0.5% - 1.3%

6,341

1,050

—

7,391

Grade 7-8

1.3% - 3%

8,010

1,818

—

9,828

Grade 93% - 5%

4,606

1,594

—

6,200

Grade 10

5% - 8%

3,327

862

—

4,189

Grade 11+8% - 100%

2,723

2,479

2,012

7,214

31,938

7,803

2,012

41,753ECL(1,063)(1,186)(1,562)(3,811)

Carrying amount

30,8756,617

450

37,942

ECL coverage %3.33%

15.20%

77.63%

9.13%

Gross carrying amountGroup

Weighted averageloss rate

Gross carrying amount

Loss allowance

Net carrying amount

£000

£000

£000

Negative customer liabilities
0-30 days past due

45 %

2,989

(1,351)

1,638

30-60 days past due

70 %

1,763

(1,239)524

60-90 days past due

80 %

1,114

(896)

218

90-365 days past due

95 %

8,281

(7,901)380> 365 days past due

100 %

—

—

—

Gross carrying amount

14,147

ECL(11,387)

Carrying amount

2,760

ECL coverage %80.49 %

31 December 2022
12 months PD

Stage 1

Stage 2

Stage 3

£000

£000

£000

£000

Grades 1-4

0% - 0.5%

2,694,740——

2,694,740

Grades 5-6

0.5% - 1.3%

—

—

—

—

Grade 7-8

1.3% - 3%

—

—

—

—

Grade 93% - 5%

—

—

—

—

Group
Treasury investments

Total

Grade 10

5% - 8%

—

—

—

—

Grade 11+8% - 100%

—

—

—

—

2,694,740——

2,694,740

(81)

—

—

(81)

Gross carrying amount
ECL
Carrying amount

2,694,659——

2,694,659

ECL coverage %0.003%—%—%

0.003%

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174

Group12 months PD

Loans (including BNPL)Stage 1

Stage 2

Stage 3

Total

£000

£000

£000

£000

Grades 1-4

0% - 0.5%

60,033240

155

60,428Grades 5-6

0.5% - 1.3%

22,861893

158

23,912

Grade 7-8

1.3% - 3%

72,212

5,593

662

78,467

Grade 93% - 5%

5,373

2,579

118

8,070

Grade 10

5% - 8%

10,1103,100

490

13,700

Grade 11+8% - 100%

Gross carrying amount
ECL

5,891

3,653

685

10,229176,480

16,0582,268

194,806(1,917)(1,174)(1,655)(4,746)

Carrying amount

174,563

14,884613

190,060

ECL coverage %

1.09%

7.31%

72.97%

2.44%

Stage 1

Stage 2

Stage 3

Total

£000

£000

£000

£000

Group

12 months PD

Credit cards
Grades 1-4

0% - 0.5%

2,837

12

24

2,873

Grades 5-6

0.5% - 1.3%

2,578

104

18

2,700

Grade 7-8

1.3% - 3%

2,703

244

51

2,998

Grade 93% - 5%

1,463

418

80

1,961

Grade 10

5% - 8%

968

357

37

1,362

Grade 11+8% - 100%

Gross carrying amount

1,585

718

249

2,552

12,134

1,853

459

14,446

ECL

(366)

(266)

(294)

(926)

Carrying amount

11,768

1,587

165

13,520

ECL coverage %3.02%

14.36%

64.05%

6.41%

Group

Weighted averageloss rate

Gross carrying
amountLoss allowance

Net carrying amount

£000

£000

£000

Negative customer liabilities
0-30 days past due

40%

6,520

(2,608)3,912

30-60 days past due

60%

1,394

(836)

558

60-90 days past due

75%

1,177

(883)

294

90-365 days past due

81%

12,298(9,942)

2,356

100%

9,026

(9,026)—> 365 days past due
Gross carrying amount

30,415ECL(23,295)

Carrying amount

7,120

ECL coverage %76.59%

Credit risk concentration
Credit concentration risk represents the risk of financial loss that may arise due to default correlation between
underlying assets.
There are three main forms of concentration risk that the Group is exposed to:• Single-name – The risk of losses due to concentrated exposures to a single counterparty. The largest
source of single-name concentration risk, excluding sovereign exposures and securitisations, arises fromcash placed at institutions for liquidity.
• Sector – The risk of losses due to concentrated exposures to a sector. The largest source of sector
concentration risk, excluding sovereign exposures and securitisations, is from operational exposures tofinancial sector entities.

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175

•

Geographic – The risk of losses due to concentrated exposures to a geographic region. Revolut business iscurrently predominantly located in the UK and EU, and will hold US investments. Revolut have a presence
in many other regions, but the size of the business in these areas is relatively small. As Revolut expand
into more regions, as forecast under business plan, this risk will become more diversified.

Concentration risk is managed by:• Loans (including BNPL) and credit cards credit risk - through the lending approval controls to ensure ageographically diverse retail lending portfolio to help control geographic concentration risk.
• Treasury investments and cash and cash equivalents credit risk - through the credit limit framework andthe wholesale credit risk KRIs, to control single-name, sector and geographic concentration risk.
An analysis of the Group’s credit risk concentrations for treasury investments and loans and advances tocustomers is provided in the following table. The amounts in the table represent net carrying amounts. In the caseof securitisations, we consider the country of incorporation of the SPV.
Group

At 31 December 2023

Europe (excluding UK)
Treasury investments

Loans and advances
to customers
Total

At 31 December 2022

Wholesale

Customers(Retail andBusiness)

Wholesale

Customers(Retail andBusiness)

£000

£000

£000

£000

2,128,699—

613,903—

UK

189,077—

1,111,954—

US

628,715—

763,040—

Other

312,021—205,762—

Europe (excluding UK)—

522,408—

200,814

UK

—

—

—

—

Other

—

5,185

—

2,766

3,258,512

527,5932,694,659

203,580

Loss allowance
The following tables illustrate the migration of expected credit loss (ECL) allowances across Stages 1, 2, and 3 forcredit products, net of various adjustments, reconciling all changes of loss allowances from the initial balance tothe closing balance of the year. The movements in ECL for financial instruments are not included due to lowmateriality of loss allowance. During 2022, the majority of ECL movement was due to new financial assets, during2023 there was an ECL back-testing exercise and behaviour PD model recalibration resulting in a secondary
source of ECL increase.

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Loans (including BNPL)At 1 January 2022

Stage 1

Stage 2

Stage 3Grosscarrying
amountECL

Grosscarrying
amountECL

Grosscarrying
amount

ECL

£000

£000

£000

£000

£000

14,147

130

664

43

53

Total
Gross
carrying
amount

ECL

£000

£000

£000

34

14,864207

Transfer to Stage 1

188

17

(186)

(16)

(2)

(1)

—

—

Transfer to Stage 2(2,159)

(14)

2,159

14

—

—

—

—

Transfer to Stage 3

(371)

(12)

(138)

(7)

509

19

—

—

Net remeasurement ofloss allowance(1,831)

(48)

(463)

44

(5)

316

(2,299)312

New financial assets
originated or purchased

168,773

1,862

14,098

1,100

1,727

1,289

184,598

4,251

Financial assets thathave been derecognised(2,251)

(19)

(64)

(4)

(4)

—

(2,319)

(23)

—

—

—

—

—

(2)

—

(2)

Write-offs
Other movements

(16)

1

(12)

—

(10)

—

(38)

1

176,480

1,917

16,058

1,174

2,268

1,655

194,806

4,746

Transfer to Stage 1

6,964

566

(6,902)

(519)

(62)

(47)

—

—

Transfer to Stage 2(33,279)(203)

33,280

204

(1)

(1)

—

—

Transfer to Stage 3(9,698)(184)(2,184)(166)

11,882350——

Net remeasurement ofloss allowance(29,335)(157)(7,498)

1,329

(966)

8,817

(37,799)

9,989

New financial assets
originated or purchased

338,161

7,201

55,012

5,900

7,150

5,786

400,323

18,887

Financial assets thathave been derecognised(31,849)(351)(2,547)

(177)

(41)

(31)

(34,437)(559)

At 31 December 2022

Write-offs
Other movements
At 31 December 2023

—

—

—

—

—

—

—

—

(157)

12

12

10

12

24

(133)

46

417,287

8,801

85,231

7,755

20,242

16,553522,760

33,109

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177

Credit cards

At 1 January 2022

Stage 1

Stage 2

Stage 3Grosscarrying
amountECL

Grosscarrying
amountECL

Grosscarrying
amount

ECL

£000

£000

£000

£000

£000

3,016

79

270

64

38

Total
Gross
carrying
amount

ECL

£000

£000

£000

23

3,324

166

Transfer to Stage 1

41

14

(41)

(14)

—

—

—

—

Transfer to Stage 2

(440)

(9)

441

10

(1)

(1)

—

—

Transfer to Stage 3

(72)

(2)

(36)

(9)

108

11

—

—

Net remeasurement ofloss allowance

1,205

(16)

255

94

40

95

1,500

173

New financial assets
originated or purchased

8,691

295

977

116

274

164

9,942

575

Financial assets thathave been
derecognised

(175)

(7)

(11)

(4)

—

—

(186)

(11)

—

—

—

—

—

—

—

—

(132)

12

(2)

9

—

2

(134)

23

12,134

366

1,853

266

459

294

14,446926

Write-offs
Other movements
At 31 December 2022
Transfer to Stage 1

695

125

(695)

(125)

—

—

—

—

Transfer to Stage 2(2,976)

(37)

2,979

39

(3)

(2)

—

—

Transfer to Stage 3

(774)

(39)

(250)

(27)

1,024

66

—

—

Net remeasurement ofloss allowance

2,540

32

1,337

623

210

927

4,087

1,582

New financial assets
originated or purchased

20,727

662

2,656

427

325

254

23,708

1,343

Financial assets thathave been
derecognised

(802)

(25)

(81)

(13)

(3)

(2)

(886)

(40)

—

—

—

—

—

—

—

—

Write-offs
Other movements
At 31 December 2023

394

(21)

4

(4)

—

25

398

—

31,938

1,063

7,803

1,186

2,012

1,562

41,7533,811

Trade receivables

Negative balances

£000

£000

At 1 January 2022—

20,159Charged210

38,316

Written-off—(35,180)

210

23,295

At 31 December 2022
Charged

—14,955

Written-off(11)(26,863)

At 31 December 2023

199

11,387

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178

Sensitivity analysis towards macroeconomic scenarios
The scenario weightings Revolut applied for 2023 and 2022 are:Lending products (including loans, BNPL, and credit cards)
Baseline

Optimistic

Pessimistic

31/12/2023

60 %

10 %

30 %

31/12/2022

60 %

10 %

30 %

Treasury investments and cash and cash equivalents
31/12/2023

60 %

20 %

20 %

31/12/2022

60 %

20 %

20 %

These scenario weights are reviewed on a quarterly basis and authorised by Credit Risk Committee. The current
weights are indicative of worsening outlooks throughout the last several reporting periods.
Macroeconomic scenarios are derived from source economic forecasts.
• The highest production and GDP growth forecasts and the lowest unemployment forecasts represent our
optimistic scenario.
• the lowest production/GDP growth forecasts and the highest unemployment forecasts represent our
pessimistic scenario.
• the average of all forecasts represent our baseline scenario.
The below table provides an overview of ECL levels in the following scenarios at the year ended 31 December
2023, showing the effect on ECLs resulting from applying a 100% weighting to alternative scenarios.
• Current weighting — as shown in the above table• Baseline — 100% weight is assigned to baseline scenario• Optimistic — 100% weight is assigned to optimistic scenario• Pessimistic — 100% weight is assigned to pessimistic scenario
Current
weights

100% Baseline

100% Optimistic

100% Pessimistic

ECL

ECL Movement Movement

ECL Movement Movement

ECL Movement Movement

£000

£000

£000

%

£000

£000

%

£000

33,18532,089(1,096)(3.3) %

30,802(2,383)(7.2) %

33,650£000%

Loans (including BNPL)
465

1.4 %
Credit cards

4,150

4,110

(40)

(1.0) %

3,845

476

477

1

0.2 %

433

(305)

(7.3) %

4,331

181

4.4 %

Treasury investments and cash and cash equivalents(43)(9.1) %

516

40

8.5 %
Total

37,811

36,676(1,135)(3.0)%

35,080(2,731)(7.2)%

38,497686

1.8 %Sensitivity analysis towards macroeconomic variables
The below table provides an overview of ECL levels in case the macroeconomic variables used in the PD macromodels are stressed by 100 basis points (in both directions), while holding the scenario weightings constant:

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ECL
Current
WeightGDP
Growthsensitivity:-100 b.p.

£000

£000

GDP
Unemployment
Unemployment
Growthsensitivity: -100 sensitivity: +100
sensitivity:
b.p.
b.p.
+100 b.p.

£000

£000

% ChangeGDP
Growthsensitivity:-100 b.p.

£000

GDP
Unemployment
Growthsensitivity: -100
sensitivity:b.p.
+100 b.p.

%%

Unemployment
sensitivity: +100
b.p.

%

%

Loans (including BNPL)
33,18533,57032,466

31,27534,865

1.16 %(2.17) %(5.75) %5.06 %
Credit cards

4,150

4,269

4,035

3,810

4,556

2.87 %(2.77) %(8.19) %9.78 %

476

524

437

477

477

10.08 %

(8.19) %— %— %37,81138,36336,93835,56239,898

1.46 %(2.31)%(5.95)%

5.52 %

Treasury investments and cash and cash equivalents
Total

Underlying economic factors for each economic scenario through the initial projection period (five years) isdisclosed in the below table. The underlying economic factors are disclosed as a range since different inputs areapplied to financial instruments depending on which jurisdiction they are domiciled.
Economic
Scenarios

2023

2024

GDP Growth (%)(0.05%) - 5.09%

0.50% - 3.49%

Unemployment (%)

0.26% - 7.39%

0.26% - 7.64%

GDP Growth (%)

1.00% - 5.09%

1.50% - 4.46%

Unemployment (%)

0.09% - 7.00%

GDP Growth (%)
Unemployment (%)

2025

2026

2027

1.55% - 3.75%

1.6% - 3.53%

1.49% - 3.37%

0.23% - 7.58%

0.19% - 7.08%

0.21% - 7.17%

2.28% - 4.80%

2.22% - 5.65%

1.69% - 3.80%

0.09% - 6.80%

0.09% - 6.60%

0.09% - 5.70%

0.15% - 6.24%(1.40%) - 5.09%(1.08%) - 2.21%

0.98% - 3.02%

1.05% - 2.60%

1.30% - 2.75%

0.31% - 7.80%

0.36% - 8.60%

0.31% - 8.50%

0.25% - 7.80%

0.25% - 8.00%

Baseline

Optimistic

Pessimistic

Sensitivity analysis towards revolving credit card lifetime assumptions
The below table provides an overview of ECL levels in case the revolving credit card lifetime assumptions arestressed.
Current
60 month lifetime

48 month lifetime

72 month lifetime

ECL

ECL

Movement

Movement

ECL

Movement

£000

£000

£000

%

£000

£000

Movement%
Credit Cards

4,150

4,066

(84)

(2.02)%

4,220

70

1.69 %

Sensitivity analysis towards revolving treasury investment and cash and cash equivalents lifetime assumptions
The below table provides an overview of ECL levels in case the lifetime assumptions for revolving treasury
investment and cash and cash equivalents are stressed.
Current
7 days lifetime

5 days lifetime

9 days lifetime

ECL

ECL

Movement

Movement

ECL

Movement

Movement

£000

£000

£000

%

£000

£000

%

476

470

(6)

Treasury investments and cash and cash equivalents

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269(1.26)%

482

6

1.26 %

180

Sensitivity analysis to interest rates movement for treasury investment and cash and cash equivalents
The below table provides an overview of ECL levels on treasury investments and cash and cash equivalents, incase interest rate moves by 100 basic points (in both directions).
Current-100bps+100bpsECL

ECLMovement

Movement

ECL

Movement

Movement

£000

£000

£000

%

£000

£000

%

476

484

8

Treasury investments and cash and cash equivalents
1.68 %

469(7)(1.47)%

31.2. Liquidity risk
Liquidity risk is the risk that the Group cannot meet its financial obligations when they fall due or is only able to do
so at excessive cost.
The Group is, or may in the future be, exposed to a number of liquidity and funding risks. These risks include, but
are not limited to run-off of deposit funding, funding concentration, off balance sheet risks from commitment
drawdowns, intraday risk, franchise viability risk, receivables pre-funding and an inability to transfer liquidity
across entities, sectors and countries. These risks are managed by the Treasury function, with control andoversight provided by the Risk Management function, the Assets and Liabilities Management Committee (ALCO)and the Management Board. The Group's key liquidity policy is to maintain a portfolio of unencumbered, highquality cash instruments and securities that are readily convertible to cash to ensure that it can meet all of its
financial obligations in business-as-usual circumstances and in stress conditions. The Group complies with thispolicy by holding surplus cash in the form of overnight deposits with banks and a portfolio of high quality liquid
assets.
Maturity analysis for financial assets and financial liabilities
The table below summarises the maturity profile of the Group’s financial assets and liabilities. Derivatives liabilities
are shown by maturity based on their contractual undiscounted payment obligations. Whilst customer liabilities arepresented as on demand, the observed behavioural characteristics are more closely aligned to the durations of theasset portfolio. During 2023, the Group has built a portfolio of treasury investments as part of its objective to
optimise the balance sheet structure whilst maintaining prudent liquidity buffers. The Group do not expect theoutflows of cash to occur significantly earlier than indicated or be of significantly different amounts from thoseindicated in the table.

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181

31 December 2023
Group

Three toOne to five
twelveyears
monthsCarrying
amountTotal

On demand

Up to threemonthsOver five
years

£000

£000

£000

£000

£000

£000

£000

Cash and cash equivalents

12,827,654

12,827,654

10,038,563

2,789,091———

Government bonds held at
FVOCI

389,866

389,866—

79,051

310,815——

Debt Instruments

2,103,181

2,103,181—

209,194

280,436

1,238,089

375,462

Securities purchased
under resale agreements(reverse repos)

374,002374,002—265,077

108,925——

Government loans

369,007369,007——

39,099329,908—

Short-term deposits

22,45622,456——22,456——

Trade and otherreceivables

423,940

423,940

20,249395,975

404

7,312

—

Derivative financial assets

28,09728,097—

27,970101

26—Loans and advances tocustomers

527,593

527,593—

78,01896,931

306,953

45,691

Total financial assets

17,065,796

17,065,796

10,058,812

3,844,376

859,167

1,882,288

421,153

Financial assets

Financial liabilities
Customer liabilities

15,197,968

15,197,968

15,197,968

—

—

—

—

Trade and other payables

426,300

426,742—408,042

11,8436,701

156

Derivative financial
liabilities

66,33367,380—34,404

26,335

6,641—

15,690,601

15,692,090

15,197,968

442,446

38,17813,342156

Net liquidity gap(5,139,156)

3,401,930

820,989

1,868,946

420,997

Cumulative liquidity gap(5,139,156) (1,737,226)(916,237)

952,709

1,373,706

Total financial liabilities

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182

31 December 2022
Group

Carrying
amountTotal

On demand

Up to threemonthsThree totwelvemonths

One to five
years

Over five
years

£000

£000

£000

£000

£000

£000

£000

Cash and cash equivalents

10,581,018

10,581,018

10,438,866

142,152———

Government bonds

1,712,292

1,712,292—

200,305

1,113,395—

398,592

Bonds with government
and financial institutions

982,367

982,367

—

—

8,400

973,967—

Trade and otherreceivables

287,168

287,168

20,358259,183

5,943

1,684

—

7,681

7,681

—

2,312

5,369

—

—

Loans and advances tocustomers

203,580

203,580—

30,382

38,631

118,666

15,901

Total financial assets

13,774,106

13,774,106 10,459,224

634,334

1,171,738

1,094,317

414,493

Financial assets

Derivative financial assets

Financial liabilities
Customer liabilities

12,593,188

12,593,188

12,593,188

—

—

—

—

Trade and other payables

148,827

149,129—

133,224

11,191

4,714—

Derivative financial
liabilities

90,017

92,710—39,031

22,96130,718—

12,832,032

12,835,027

12,593,188

172,255

34,15235,432—Net liquidity gap(2,133,964)

462,079

1,137,586

1,058,885

414,493

Cumulative liquidity gap(2,133,964)(1,671,885)(534,299)

524,586

939,079

Total financial liabilities

31.3. Market risk
Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate due to changes
in market variables such as in interest rates, credit spreads, commodity prices, equity prices, or foreign exchange
rates.
The Group’s market risk management policies and procedures provide effective and robust mitigation. The Group
monitors its exposures continually, using automated Key Risk Indicators (KRIs) and associated processes reviewing
metrics such as Value at Risk, foreign exchange stress tests for crypto currencies, foreign exchange profits orlosses, and interest rate risk. The Group makes hedging transactions as appropriate. Key decisions are subject toreview and approval by the Asset and Liability Committee (ALCO).
The market risks for the Group have remained stable and well contained. While the Group has grown significantly,
the processes have remained robust, accurate, and reliable. The Group expects the processes and market risk
exposures to remain broadly consistent over the next year, although the Group anticipates that market risk willgrow over time as the Group further rolls out its credit offering, increasing its exposure to interest rate risk, and as
its investment portfolio grows and includes more types of liquid assets. The Group is exposed to the market risks
below.
Foreign exchange risk, including commodities
The Group provides foreign exchange to its customers via multi-currency wallets that allow spending in different
currencies. It is thus exposed to currency exchange rate fluctuations. The Group is exposed to foreign exchange
risk arising from various corporate activities and stemming from revaluation of contractual cash flows or assets

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183

and liabilities denominated in foreign currencies. Client foreign exchange exposures are monitored on a daily basis
to ensure the effective management of this risk.
The foreign exchange exposure of the banking book arises from the Treasury function activities. This includes
profit on the banking products, interest earned on nostro balances and various costs (all in non-functional
currency).
The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities at thereporting date are as follows:Group

Monetary
assetsMonetary
liabilities

Net
position

£000

£000

£000

GBP

3,038,937(1,978,045)

1,060,892

EUR

9,656,476(9,115,366)

541,110USD

1,414,597(1,475,327)(60,730)

CHF

780,231(782,014)(1,783)

At 31 December 2023

JPY

851,458(837,659)

13,799Other currencies

1,507,561(1,502,318)

5,243

17,249,260(15,690,729)

1,558,531

£000

£000

£000

GBP

3,990,031(3,364,041)

625,990EUR

8,954,383(8,738,170)

216,213USD

1,913,449(1,844,962)

68,487

CHF

1,265,842(1,271,441)(5,599)Total
At 31 December 2022*

JPY

84,453(75,158)

9,295

Other currencies

1,213,032(1,069,276)

143,756

Total

17,421,190(16,363,048)

1,058,142*Foreign currency positions relating to foreign currency swaps for the year ended 31 December 2022 have been restated frompounds sterling to their respective foreign currency classification to be consistent with the current year methodology ofdisclosing foreign currency swaps according to their underlying foreign currencies.

The Group also provides customers the ability to acquire commodities and cryptocurrencies and is exposed toprice fluctuations for these instruments during the course of trade settlement.
Foreign currency sensitivity analysis
The Group’s foreign currency risk is managed centrally by the Group’s Treasury team and the Market Making
execution desk. Foreign exchange (FX) risk is monitored on an ongoing basis by using a stress testing approach
broadly equivalent to expected shortfall, focused on the FX risk arising from open non-GBP currency positions that
include both fiat and crypto currencies.
Under the severe stress test, a loss of £26.6 million (2022: £67.7 million) would arise if the euro depreciated by
9.7%, United States dollar depreciated by 10.3%, and yen depreciated by 8.9% against the pound sterling.
Interest rate risk
Interest rate risk in the banking book (IRRBB) is the risk that the Group’s Consolidated Statement of Financial
Position and profitability is structurally exposed to unexpected movements in interest rates. This risk stems frommaturity and repricing mismatches between assets and liabilities, which would materialise with changes in the
shape of the yield curve ('gap risk'), or from interest rate related options embedded in those that might affectfuture cash flows ('option risk'), or with changes in the relationship between various yield curves ('basis risk').
To quantify the IRRBB, the Group uses two metrics: net interest income (NII) sensitivity and economic value ofequity (EVE) sensitivity. NII is computed as the impact of parallel shock in interest rates on the net interest income

Revolut Group Holdings Ltd | Annual Report 2023 | Registered number: 12743269

184generated by the banking book items based on their repricing profiles. EVE is assessed through a measurement ofchanges in the net present value of the interest rate sensitive instruments (excluding Common Equity Tier 1 (CET1)
instruments and other perpetual own funds) over their remaining life resulting from interest rate movements
assuming six different shock scenarios.
Both metrics are managed against a control framework, which is defined with set limits in place. The Treasury
function is responsible for IRRBB management on an on-going basis using mitigation approaches such as the useof hedging. Interest rate characteristics of funding are matched as far as possible to lending and investments into
securities. The Risk Management function closely monitors IRRBB exposures, proposes limits and calculation
assumptions, and performs stress testing. Any breach of the limit is escalated to the senior management with
mitigating actions taken.
The following table shows the sensitivities under NII and EVE approach at the group consolidated position, which
includes the banking entities. The main changes within Revolut that drove the EVE and NII differences in 2023 was
an update to the deposit behaviouralisation assumptions and continued growth in the size of the balance sheet.
Group

2023

2022

Net interest income-based approach

£000

£000

200 bps parallel increase

194,044

225,480

200 bps parallel decrease(194,044)(135,290)

200 bps parallel increase

19,3152,110

200 bps parallel decrease(48,370)(17,540)

Economic value of equity-based approach

31.4. Capital risk management
Capital risk is the risk that the Group and its individual entities do not hold a sufficient level of capital to support its
regulatory requirements, risk profile or leverage.
At 31 December 2023, the Group did not have a prudential consolidation group and has no consolidated capitalrequirements. The Group's capital adequacy is therefore driven by its ability to ensure all legal entities within theGroup have sufficient capital to operate in excess of regulatory requirements and internal risk appetite. The Grouphas been adequately capitalised to meet this requirement throughout the reporting period. The two largest entities
within the Group with the most significant capital requirements are RBUAB and Revolut Ltd.
Revolut's banking subsidiary
RBUAB is an EEA-regulated bank with regulatory capital requirements in accordance with the EU Capital
Requirements Regulation (CRR) and the Capital Requirements Directive (CRD). RBUAB has the following controls inplace to ensure capital risk is managed effectively:• The Internal Capital Adequacy Assessment Process (ICAAP) is an exercise performed at least annually thataims to identify the adequate level of capital required to execute the firms business plan over a specified
planning period. This includes running multiple stress scenarios to ensure enough capital buffers are inplace to absorb losses and continue to meet the regulatory requirements in these scenarios.
• The use of Key Risk Indicators (KRIs) provide early-warning indications on upcoming stresses. The KRIs
are calibrated through the ICAAP process and include, but are not limited to, capital ratios, leverage ratios
and variance analysis. and risk appetite is set in excess of Level 1 limits. If a limit is breached, a range ofactions are prescribed to restore the indicator to adequate levels.
• The entities Asset and Liabilities Committee have oversight of both the performance of existing capital
deployed and the use of future capital deployment across planning periods.

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185

2023

2022

£000

£000

1,849,354

1,472,060

Total CET1 capital

432,689

325,918

Total Tier 1 capital

432,689

325,918

Total capital resource

432,689

325,918

CET1 ratio (%)

23.40%

22.13%

Total RWAs
Capital resources

Tier 1 ratio (%)

23.40%

22.13%

Total capital ratio (%)

23.40%

22.13%

Revolut Ltd
Revolut Ltd, Revolut's non-banking subsidiary, is an FCA regulated e-money institution. It is subject to the Payment
Services Directives 2017 (PSD2) legislation and operates under the supervision of the Financial Conduct Authority(FCA).
Revolut Ltd has the following controls in place to ensure capital risk is managed effectively:• Perform quarterly bottom up forecasts on profitability and e-money balances to ensure the entity has
sufficient capital to meet requirements plus internal management buffer.
• Sensitivity analysis and scenarios on profitability and e-money balances to understand what actions could
be taken to offset potential losses.
• The use of KRIs which provide early-warning indications to monitor the movement in e-money balancesand variances to capital requirements and resources.

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186

32. Capital and Other Commitments
To meet the financial needs of customers, the Group enters into various irrevocable commitments. These consistof consumer credit cards and loans. Even though these obligations are not recognised on the statement offinancial position, they contain credit risk and, therefore, form part of the overall risk of the Group. At 31 December
2023, the nominal value of such committed but undrawn facilities in respect of consumer credit cards and loans
are £97.6 million (2022: £31.5 million).
Provisions for expected credit losses held against undrawn commitments are reported in Note 31.1.
The Group and the Company does not have any other material commitments, capital commitments, or
contingencies at 31 December 2023 and 31 December 2022.

33. Transactions with Related Parties
Related parties of the Group and the Company include subsidiaries and key management personnel. Key
management personnel include all persons across the group who together have authority and responsibility forplanning, directing and controlling the activities of the Group.
Balances and transactions between the Company and its subsidiaries, which are related parties, have been
eliminated on consolidation and are not disclosed in this note. Information for key management personnel
compensation and particulars of transactions with related parties are tabulated below, in accordance with therequirements of IAS 24 Related Party Disclosures.
2023

2022

£000

£000

3,098

3,082

Share-based payments

817

19,803Social security costs and other benefits

409

519

Termination benefits

30—

Contributions to defined contribution pension schemes

11

64

4,365

23,468Wages and salaries

Total compensation to key management personnel

During the year ended 31 December 2023, the aggregate value of related party transactions other than key
management personnel compensation was £nil (2022: £nil). There are no other material balances or transactions
with related parties (2022: none).

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187

34. Events after the Balance Sheet Date
In April 2024, the National Banking and Securities Commission of Mexico (CNBV) granted in-principle approval forGroup subsidiary Revolut de Mexico SA de CV to establish itself as a bank.
In April 2024, The Reserve Bank of India (RBI) granted in-principle approval to Revolut Payments India Private
Limited for a Prepaid Payment Instruments (PPI) license. This approval enables Revolut to issue prepaid cards
and prepaid wallets in India, allowing to operate as a domestic player in the market.
In June 2024, Revolut Ltd entered into an Agreement for Lease to relocate its headquarters to YY London at 30
South Colonnade, Canary Wharf, London, England, E14 5HX. The lease, which has an initial term of ten years, issubject to advertising consent from Tower Hamlets for two exterior signs on the building. The lease commences
and becomes binding after receiving this consent, which is expected in August 2024. The planned move to the
new headquarters and fit-out completion is scheduled for May 2025. As of the date of these financial statements,
council approval is still pending.
Revolut Technologies Inc (RTI) is in the process of transitioning from an existing sponsor bank to a new sponsor
bank in the United States. Revolut’s business model in the United States is dependent on the provision ofservices by a sponsor bank. As at the date of authorisation of the financial statements, the transition process isongoing and the migration of customers has not yet commenced. There is a risk that the migration may notcomplete successfully which would result in an impairment of the Company’s investment in Revolut Holdings US
Inc, which is the direct parent of RTI and has a carrying value of £83 million as at 31 December 2023.
There are no other events after the reporting date that require disclosure in these consolidated financial
statements.

35. Controlling Party
The Company is owned by a number of private shareholders and companies, none of whom own more than 25%of the issued share capital of the Company. Accordingly, there is no parent entity nor ultimate controlling party by
virtue of shareholding. Nik Storonsky is considered a person with significant control (PSC).

36. Capital Management
Per Capital Requirements Regulation (CRR), the Company is not subject to prudential consolidation requirements
at 31 December 2023. The capital requirements only apply on an individual basis, mainly from Revolut Bank UAB
and Revolut Ltd, as well as other smaller regulated entities.
At 31 December 2023, Revolut Group Holdings Ltd had total available capital to invest into entities, all of which
qualifies as Common Equity Tier 1 (CET1), of £1.6 billion (2022: £1.2 billion).

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188

Alternative Performance Measures
Revolut discloses various alternative performance measures ('APMs' or ‘measures’) throughout its Annual Report.
These measures are not defined by IFRS. Instead, they are representative of Revolut’s business and how the Boardand management monitor performance. These measures are not a substitute for financial reporting presented in
the consolidated financial statements, which are prepared in accordance with IFRS; however, they may provide
additional information to stakeholders who wish to understand Revolut’s performance.
MeasureDefinition

2023

2022

Gross profit margin

Gross profit as a percentage of revenue. This is a key
measure of internal profitability.

76 %

70 %

Administrative expenses(excluding sales, advertisingand marketing)This metric is calculated by subtracting sales teamstaff expense, advertising, and marketing expenses
from total administrative expenses. We believe this isa useful measure to users of the financial statements
as it demonstrates our operating cost expenditure
after removing discretionary costs associated withaccelerating growth.

£610 million£506 million

Overhead ratio

Administrative expenses (excluding sales,
advertising and marketing) as a percentage of grossprofit. This is a core measure of the operating
efficiency of Revolut.

44 %

79 %

Net profit margin

Net profit for the year as a percentage of revenue.
This is a key measure of internal profitability.

19 %

1%

Total customer balancesThis total is the sum of all on-balance sheet
customer deposits and off-balance sheet customer
deposits. This measure provides an understanding of
the amount of deposits our customers hold within the
Revolut ecosystem, whether recognised on or off our
Consolidated Statement of Financial Position for
financial reporting purposes.

£18.2 billion£13.2 billion

Off-balance sheet customer
deposits

Customer balances in fiat currencies held by ourcustomers with partner institutions; these arerecognised off-balance sheet for financial reporting
purposes.

£3.1 billion£0.7 billion

Loan-to-customer-deposit
ratio

Net loans and advances to customers as apercentage of customer deposits. Loan-tocustomer-deposit ratio is a widely-used measure,enabling comparison with similar companies.

3.5 %

1.6 %

Adjusted EBITDA

EBITDA is earnings before interest, taxes,
depreciation and amortisation. Adjusted EBITDA also
excludes share-based payments. This is a widelyused measure of core profitability, enablingcomparison with similar companies. Given interest ispresented within gross profit it is not adjusted for in
Revolut's measure of Adjusted EBITDA.

£493 million£23 million

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APMs are reconciled to the underlying financial statements or the most closely related measure under IFRS as
follows:
2023

2022

£000

£000

Revenue

1,797,890

922,547

Gross profit

1,370,580

641,658

76%

70%

Staff costs

498,399

361,872

Of which related to sales

81,64631,508Administrative expenses

932,752

667,076

Gross profit margin

Sales-related staff costs(81,646)(31,508)

Advertising and marketing(241,281)(129,295)

609,825506,273

44%

79%

Net profit for the year

344,075

5,802

Tax expense/(credit)

93,753(31,220)

Depreciation and amortisation expenses

10,171

9,102

Administrative expenses (excluding sales, advertising, and marketing)Overhead ratio

45,13039,049Adjusted EBITDA

Share-based payments

493,129

22,733

Revenue

1,797,890

922,547

Net profit for the year

344,075

5,802

19%

1%

Customer liabilities in respect of deposits

9,244,838

7,144,858

E-money in issue

5,870,251

5,411,555

Customer deposits

15,115,089

12,556,413

Off-balance sheet customer deposits

3,100,424

684,952

Total customer balances

18,215,513

13,241,365

Customer deposits

15,115,089

12,556,413

527,593

203,580

3.5%

1.6%

Net profit margin

Net loans and advances to customers
Loan-to-customer-deposit ratio

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Glossary
Administrative
Expenses

The ongoing costs incurred from the day-to-day running of the business

APP

Authorised Push Payments, electronic payments where a customer initiates and authorises thetransfer of funds from their account to another party. It is often used for online banking and mobile
payments.

Auditor

An organisation or individual responsible for reviewing a company’s financial records and expressing
an opinion regarding whether those records are free from material misstatement

B2B

Business-to-business, which refers to transactions made between two independent companies, as
opposed to transactions between a company and a customer.

Balance Sheet

A statement of financial position that provides a picture of a company’s assets, liabilities and owners’
equity. It gives an indication of a company’s financial health.

Bank Deposits

The sum of balances in customer accounts on Revolut Bank UAB — excludes investments such as
stocks, cryptocurrencies, commodities, and savings

BNPL

Buy Now Pay Later, a way to buy goods on credit and pay for them at a future date, often in
instalments

Control Function

A function (including, but not limited to, a risk management function, compliance function and internal
audit function) that is independent from the business it controls and that is responsible for providing
an objective assessment of a company's risks, and for reviewing and reporting on those risks.

Customer Deposits

Customer balances in fiat currencies held on-balance sheet, representing the sum of customer
liabilities in respect of deposits and e-money in issue. There are two types of deposits: e-money
deposits and bank deposits.

Debenture

A type of long-term debt instrument representing a long-term borrowing by a company. It
acknowledges a debt and provides specific terms for interest and principal payments. Debenture
holders are essentially creditors of the issuing entity.

Direct-to-card
Transfers

Direct-to-card transfers enable the direct and immediate deposit of funds onto a debit or credit card,allowing users instant access to the transferred funds.

DTA'Deferred Tax Assets (DTAs) and liabilities arise where there are temporary differences between the
carrying amount of an asset or liability and its value for tax purposes. DTAs may only be recognised
to the extent that it is probable that there are sufficient future taxable profits. Revolut is able torecognise DTAs in the group entities for which this criteria applies.

Earnings

Earnings is another word for profit or net income. It is traditionally the bottom line of the statement ofcomprehensive income (also known as an income statement or profit or loss statement).

E-money Deposits

The sum of balances in customer accounts held by Group with regards to the electronic money thathas been issued — excludes investments such as stocks, cryptocurrencies, commodities, andsavings

E-money Institution

E-money Institutions (EMIs) are regulated by the Financial Conduct Authority (FCA) and must
safeguard customer funds

FCA

Financial Conduct Authority, the regulator of financial conduct in the UK

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IBAN

International Bank Account Number, an internationally agreed system of identifying bank accounts
that allows cross-border transactions

ICAAPInternal Capital Adequacy Assessment Process, the process to determine that the firm has adequatelevels of capital to mitigate risks in order to execute its forward-looking business plan

ILAAPInternal Liquidity Adequacy Assessment Process, the process to determine that the firm has
adequate levels of liquidity to mitigate risks in order to execute its forward-looking business plan

KPI

Key Performance Indicator, a quantifiable measure of performance relating to a specific objective

KRI

Key Risk Indicator, a measure of exposure to a specific risk at a given time

KYC

Know Your Customer, a regulatory requirement in the financial industry. It involves verifying theidentity of customers to prevent fraud, money laundering and other illegal activities by collecting andverifying personal information.

Liquidity

The ease with which an asset or security can be converted to ready cash

Material Risk Taker

A staff member’s professional activities are deemed to have a material impact on a company's risk
profile or the assets of a company in accordance with applicable regulations.

Merchant Acquiring

Merchant acquiring is the process of enabling businesses to accept payments from customers, suchas debit and credit card transactions, at the point of sale.

Management
Information

Management Information (MI), the reporting that conveys data points to leadership for effective
management.

Peer-to-Peer
Payments

Also known as P2P, a mechanism by which a customer can transfer funds from their bank account toanother via the internet

POS

Point of Sale, often used to describe the terminal in retailers where payment is taken

Revolut Bank UAB

Our legal entity in Lithuania that operates our Bank for customers in the EEA

Revolut Ltd

Our legal entity in the UK, primarily for UK and Swiss customers

Risk Appetite
Statement

The Board Risk Appetite Statement (RAS) is the expression of the level of risk that Revolut isprepared to accept in order to deliver on its vision and strategy.

Safeguard

Safeguard or Safeguarding means customers' funds are segregated from the the EMI’s own funds toensure that any financial turbulence at the EMI will not put customer money at risk. Customer funds
are deposited into a client money bank account held on behalf of customers. The Group maintains
client accounts with a range of global tier 1 banks.

Unsecured Personal
Loans

Loans that don’t require the customer to offer any form of security to the lender as collateral. They
are granted based on a customer’s creditworthiness.

‘Zero-trust’
solutionsZero-trust security means that no one is trusted by default from inside or outside the network, andverification is required from everyone trying to gain access to resources on the network.

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Company Information

Company Name

Directors

Revolut Group Holdings Ltd

Martin GilbertCompany Number

Chair

Registered in England and Wales
Company Number 12743269

Nikolay Storonsky (Nik)CEO & Co-founder

Registered Office
7 Westferry Circus

Vladyslav Yatsenko (Vlad)

Canary Wharf

CTO & Co-founder

LondonEngland

Michael Sherwood

E14 4HD

Independent Non-Executive Director

Independent Auditors

Caroline Britton

BDO LLP

Independent Non-Executive Director

55 Baker Street
LondonIan Wilson

England

Independent Non-Executive Director

W1U 7EU

John SievwrightCompany Secretary

Independent Non-Executive Director

Thomas Hambrett

Dan Teodosiu

Shareholder Information

Independent Non-Executive Director

Please refer to Note 35 for information on the Company's
shareholders.

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