Wise hikes profit guidance as customers sending cash overseas surges again
Money transfer firm Wise lifted its profit guidance for the year today after another surge in the amount of customers pinging cash overseas and a continued boost from higher interest rates.
The London-listed fintech, which offer current accounts and allows customers to send cash overseas, said in a trading update this morning its active customer base grew by 30 per cent to 7.5m in the between September and December as revenues swelled to £276.6m, up 23 per cent from £225.2m in the same period last year.
Wise’s customers sent £30.6bn across borders in the same period, up 16 per cent on the previous year.
“I am pleased to report another quarter of progress as we work towards our mission of building the best way to move and manage the world’s money,” said chief Kristo Kaarmann, who has returned to the firm in January after a three month sabbatical.
“This progress speaks to the strength of our fundamentals, leading to continued strong financial performance,” he added.
Wise has raked in cash over the past 12 months on the back of aggressive rate interest rates by central bankers. In its update this morning, the firm said the gross yield on balances was 4.2 per cent over the three months, up from 3.8 per cent in the previous quarter.
Full-year income is expected to grow between 42 and 44 per cent, compared with its earlier forecast of 33 per cent -38 per cent, Wise said.
Bosses said they had also added a host of new partners in the final three months of the year, including fintech challenger Allica Bank and digital travel platform Agoda.
Shares in Wise have climbed sharply over the past 12 months amid a troubling time for fintech firms globally. The firm is trading up 36 per cent in the past year but is still down 9.5 per cent on the valuation it floated at in 2021.