By Charlie Conchie
Wise posted a whopping 234 per cent boost in profits over the last year as the money transfer fintech raked in cash on the back of rising interest rates.
The London-listed fintech firm said profits had surged from £43.9m in 2022 year to £146.5m in 2023.
Wise felt the lift of interest income on its customer balance’s throughout the year as central bankers hiked rates to tame inflation. The firm said its net interest income has rocketed to £118.1m in the year up from a £2.8m loss in the previous year.
Boss Kristo Kaarmann said it was an “exceptional set of financials” for the firm on the back of “customer growth combined with some specific tailwinds from interest”.
“Our strong growth and continued profitability are a direct result of our focus on our mission and our customers,” said Kaarmann.
Finance chief Matt Briers said the interest rate cash would use interest income to “power further profitable growth” by investing the cash in the Wise Account proposition.
“We intend to invest c.80 per cent of the interest income back into the Wise Account proposition by paying interest or offering account related incentives,” said finance chief Matt Briers.
The firm said 10m customers had chosen to move and manage their cash with Wise, an increase of 34 per cent year-on-year, while the amount of cash pinged around the world rose 37 per cent.
The results come after a troubling year for the firm in which its chief Kristo Kaarmann was embroiled in a tax scandal and faced a probe from the regulator over a bill dating back to 2017.
