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UK payments firm Wise lifts FY income growth forecast on rising rates

Published 17/01/2023, 07:44
© Reuters.
WISEa
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(Reuters) - Money-transfer firm Wise Plc raised its full-year total income growth forecast on Tuesday, saying the UK central bank's interest rate hikes were helping boost its revenue.

The London-based company now expects total income to rise 68%-72% in the fiscal year ending March 31, compared with its previous forecast of 55%-60% growth.

Wise said it expects adjusted core profit margin - a key measure of profitability - for the second half of the fiscal year to be 22% higher than the first.

The company said it continues to offer "significantly lower" rates than those offered by the banks from which its customers join.

"As interest rates increase ... we intend to share much of the benefit of higher rates with customers," chief executive and co-founder Kristo Kaarmann said in a trading statement.

Wise said transaction volumes grew 28% year-on-year in the third quarter, while the number of active customers increased 33% during the period.

(This story has been corrected to remove the reference to company as a lending firm in paragraph one)

The fintech firm said more than 50% of its cross-border payments were completed instantly for the third consecutive quarter.

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