City have posted improved results in recent years and recorded a £51.6million loss last season, down from £97.9million in 2012 and £197.5million the previous season.
Turnover was a record high of £271million, up from £231million, and is the second-highest in the Premier League.
City also paid off all their debts, which totalled £58million a year ago, and the club's chief executive Ferran Soriano admits significant strides have been taken in cutting losses and boosting turnover.
"Growing revenues and controlled expenses are bringing the club to break-even in the immediate future and profitability thereafter," he said.
City will receive extra income this season, including around £25million extra from the new Premier League TV deals, while they earned financial reward after reaching the Champions League knockout stages.
The club must comply with UEFA's financial fair play rules and hope to be within the 45million euro limit of losses once the money spent on facilities and youth development are taken into account.
In the club's annual report, City chairman Khaldoon Al Mubarak said winning
trophies was the key to the club's strategy.
He said: "We have every reason to be optimistic. The core group of players we have assembled in recent years has shown that it has what it takes to prevail in the most challenging of circumstances.
"With the arrival of Manuel Pellegrini and the further strengthening of our squad, Manchester City has entered the 2013-14 season with a renewed sense of confidence for the future.
"The club has made no secret of the fact that winning championships is at the heart of its strategy. However, we are also seeking to create teams that play creative, entertaining football, and at the same time to continue to build a socially responsible and commercially successful off-field operation to harness the opportunities generated by our on-pitch performance."