Monzo president Tom Blomfield. Photo credit: Monzo

British digital bank Monzo on Thursday reported that its annual losses more than doubled year-over-year to £113.8 million ($149.5 million), compared to £47.1 million in the year before, as revenues, on the other hand, more than tripled from £19.7 million to £67.2 million ($88 million). Throughout its fiscal year, Monzo lent out a record £143.9 million ($188 million), compared to £19.2 million in the year before. The coronavirus pandemic has, however, negatively affected Monzo’s loan book, with the company stating that it expects credit losses this year to climb to £20.3 million compared to £3.9 million in the previous year.

In a filing, Monzo said the business disruption resulting from the coronavirus pandemic has led to “significant doubt” about its ability to continue “as a going concern.” “Our revenue streams have been significantly impacted by the COVID-19 pandemic and resulting macro-economic uncertainty,” Monzo said in its report. “Regulatory reviews will also lead to stricter financial crime requirements.”

“This may result in lower forecasted customer numbers and revenues, along with increased costs associated with correcting areas of concern. This increases the risk that the Group will not be able to execute its business plan, which could adversely impact its ability to generate a profit or raise sufficient capital to meet future regulatory capital requirements.” Monzo said.

Monzo is notably fresh off a £60 million financing round that slashed its valuation by 40% to £1.25 billion.