Money transfer firm Wise has more than tripled its profits in its latest financial results thanks to an interest rate boost.
Wise, which facilitates the transfer of funds internationally, posted £114m of profit, a 247% increase from the £32.9m made in 2022.
The profit surge was down to a significant boost in revenue from £559.9m last year to £846.1m in 2023. It credited the major revenue surge to increased interest rates, which in the UK hit historic highs this year.
“The higher interest rate environment benefited Wise through the interest income we generate on the cash our customers hold with us,” said chief financial officer Matt Briers.
Briers also noted a 42% increase in the company’s cross-border transaction revenue. He said the “growth in customers and resulting volumes were the main driver behind” the increase.
Briers announced in May that he would step down as the company’s CFO in support of his recovery from a bicycle crash. Briers said he would stay on as finance chief until March 2024.
According to the results, Wise now serves 16 million customers, both people and businesses.
Wise floated publicly on the London Stock Exchange in 2021 and is currently valued at $6bn (£4.9bn).