Revolut CEO outlines ‘zero risk’ bank that barely lends

Revolut founder and CEO Nik Storonsky has laid out his plan to build a global bank carrying "effectively zero risk," keeping lending at a fraction of deposits even as the fintech giant collects banking licenses across the world's largest markets.

A Bank That Barely Lends

In an interview with the Financial Times published Monday, Storonsky described a model that breaks sharply from traditional banking. Revolut's loan-to-deposit ratio stands at roughly 6%, compared with close to 100% at most conventional banks. Storonsky said the company does not intend to push that figure beyond 10% to 20%, and that whatever loans it does make will be sold on, either whole or through securitizations. At the end of 2025, Revolut held a loan book of £2.2 billion against £50.2 billion in customer balances.ft+1

The strategy underpins what Storonsky called a business built "to have effectively zero risk," with a return on equity he pegged at 40% to 50% after stripping out excess capital — about double that of the best-performing traditional rivals.financemagnates

Fee-Driven Profitability

Chief Banking Officer Sid Jajodia, in a separate interview with Retail Banker International published the same day, detailed the revenue structure that makes the low-lending model work. Fee-based income — spanning subscriptions, card payments, wealth management and foreign exchange — accounts for 76% of turnover, leaving only 21% directly exposed to interest rate swings. Eleven product lines each generated more than £100 million in annual revenue in 2025, with no single stream exceeding 22% of group income. The company posted $6 billion in revenue in 2025 and $2.3 billion in pre-tax profit, delivering a 38% margin.finance.yahoo+1

Licensing Spree and IPO Signals

Revolut's expansion has accelerated in 2026. The company secured a full French banking license in August and received conditional approval from the U.S. Office of the Comptroller of the Currency for a national bank charter on September 3. It launched banks in Mexico and Australia earlier this year and now serves more than 80 million customers across over 40 markets.bankingnews+3

On the question of a public listing, Storonsky told Les Echos last week that Revolut was considering a dual listing on the London Stock Exchange and the Nasdaq ↗ 0.27%, according to Reuters. Investors briefed on the company's plans have said it is targeting a valuation of $150 billion to $200 billion, up from $75 billion in a November 2025 secondary share sale. In April, Storonsky told Bloomberg the IPO was roughly two years away. Jajodia, for his part, declined to comment on listing timelines, saying the company's focus remains on "continuing to expand the business, building new products, and providing better and cheaper services".finance.yahoo+2