UK-based fintech company Wise has reported a threefold increase in profits in the first half of 2023 boosted by higher interest rates. The company formerly known as TransferWise reported pre-tax profits of £256.2m ($351m) for the six months to June 2023 up from £86m ($117m) in the same period of 2022.
Wise’s revenue for the period rose 78% to £634m ($867m) driven by a 55% increase in customer numbers to 16.8 million. The company said its U.K. business had benefited from the Bank of England’s decision to raise interest rates in 2022 which had boosted its returns on cash deposits. Wise which offers money transfers international accounts and a debit card has been expanding its services including introducing cryptocurrency trading.
Wise co-founder and CEO Kristo Käärmann said the results reflected "an evolution of the business" with the increase in the firm’s customer base fuelling growth. He added: "While there’s plenty of room to grow in our existing businesses we’re also excited about the future."
The company's shares surged by almost 10% following the results announcement. The shares have surged by more than 60% since the company's successful direct listing on the London Stock Exchange in July 2022.
Wise's announcement followed other positive news for fintechs this year. In May challenger bank Revolut reported that it had made its first profit while digital bank Monzo said it had cut its losses in its 2022 results.
