Day: 24 April 2025

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World’s largest sovereign wealth fund reports $40 billion loss

Wealth

Norway’s sovereign wealth fund, the largest in the world, has reported a first-quarter loss of $40 billion, largely due to a downturn in the technology sector.

The fund, managed by Norges Bank Investment Management (NBIM), saw its value drop to 18.53 trillion kroner by the end of March 2025, with 70% of its investments in equities, which recorded a 1.6% loss.

CEO Nicolai Tangen attributed the decline to significant market fluctuations, particularly in tech stocks, which have faced recent sell-offs. The fund holds major stakes in Meta, Alphabet, Amazon, Nvidia, Tesla, and Microsoft, all of which have experienced volatility.

Additionally, currency movements played a role, with the Norwegian krone strengthening against key currencies, contributing to an 879 billion kroner (around $84.5 billion) decrease in the fund’s value.

Despite the losses, NBIM maintains a diversified portfolio, with fixed-income investments returning 1.6% and unlisted real estate yielding 2.4% gains.

This downturn follows a record $222 billion profit in 2024, driven by the AI boom, highlighting the fund’s exposure to tech sector fluctuations.

As global markets remain uncertain, NBIM continues to navigate economic shifts while managing Norway’s oil and gas revenues.

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British Fintech Revolut Surpasses $1 Billion in Profit – Eyes UK Banking Expansion

Revolut banking revolution

British fintech giant Revolut has achieved a major financial milestone, reporting £1.1 billion ($1.5 billion) in net profit for 2024, marking a 149% increase from the previous year.

The company’s revenue also saw significant growth, surging 72% to £3.1 billion, driven by a combination of subscription services, wealth management, and interest income.

One of the standout contributors to this success was Revolut’s wealth unit, which includes stock trading, boasting a 298% jump in revenue. The firm’s loan book also expanded 86% to £979 million, further strengthening its financial position.

This growth comes at a pivotal moment for Revolut, as it prepares to launch its UK bank later this year after securing a banking licence in 2024.

Once fully operational, the bank will enable Revolut to offer traditional financial services, including loans, overdrafts, and mortgages, enhancing its appeal as a primary banking option.

Revolut’s UK CEO has emphasised that securing full banking authorisation is a crucial step toward global expansion and an eventual IPO.

As the company continues to evolve, it faces stiff competition from established players such as Monzo and Starling, both of whom secured banking licences years earlier.

Revolut’s remarkable financial performance signals its ambitions to become a dominant force in banking – a fintech powerhouse redefining modern finance.

About Revolut

Revolut is a British fintech company that provides digital banking services, including currency exchange, stock trading, cryptocurrency transactions, and personal finance management.

The name ‘Revolut’ suggests a revolution in financial services, aiming to simplify and modernise banking through technology.

Founded in 2015 by Nikolay Storonsky and Vlad Yatsenko, Revolut started as a platform offering fee-free foreign exchange and has since expanded into a global financial super app.

It operates in multiple countries and serves millions of customers, offering both free and subscription-based banking services.