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Wise profits surge 234% amid rising interest rates

Wise profit
Wise CEO, Kristo Käärmann. Image credit: Wise

Wise has posted a major boost in pre-tax profits over the past year, scoring a 234% increase in part due to rising interest rates.

The remittance app, which listed on the London Stock Exchange in 2021, increased pre-tax profits from £43.9m to £146.5m.

The surge can be in part credited to interest income from customer balances, as the UK’s interest rate continues to climb.

CEO Kristo Käärmann said the promising results were down to “customer growth combined with some specific tailwinds from interest”.

He added: “Our strong growth and continued profitability are a direct result of our focus on our mission and our customers.”

According to Wise, it served around 10 million customers over the past year, an increase of 34% from the year prior.

Wise CFO Matt Briers said that the company would capitalise on the interest-spurred profits by investing the windfall cash.

“We intend to invest [around] 80% of the interest income back into the Wise Account proposition by paying interest or offering account-related incentives,” said Briers.

The Wise finance boss, who has been with the company for eight years, is set to step down as CFO in March 2024 as he continues to deal with injuries sustained from a biking accident.

The positive results follow a difficult period for Käärmann, who has been the subject of tax breach investigations from UK regulators.