Wise share price surges 17% after profits more than triple, customer numbers surge

Wise, the money transfer powerhouse, has reported a more than tripling of annual profits, boosted by a jump in customer numbers and helped by higher interest rates boosting its income.

The listed-fintech reported that pre-tax profits surged from £43.9m in the year ending March 2022 to £146.5m in the year ending March 2023.

Wise's share price is up more than 17 per cent at the time of publication on the news.

Wise said it now had 10 million active customers, a leap of 34 per cent on the year, after it attracted 4.5 million new customers.

Wise, which is estimated to be worth more than £5bn, also predicted a further rise in active customer numbers over the next year, but warned that income growth will slow down.

It also saw a 73 per cent rise in income to £964.2m, helped by central banks upping interest rates to help quell inflation.

Wise CEO and co-founder Kristo Käärmann (pictured), who founded the fintech with fellow Estonian businessman Taavet Hinrikus in 2011, said that Wise had continued to invest in its infrastructure over the past year, and launch new features.

He said: “Today, 55 per cent of our payments reach their recipient in less than 20 seconds and we save our customers an estimated £1.5bn in fees annually.

"Our strong growth and continued profitability are a direct result of our focus on our mission and our customers.”

Wise has now been profitable for seven years.

The results come at a difficult time for Käärmann who is being probed by the UK financial regulator after he failed to pay his taxes.

Käärmann told the BBC: “The FCA is still conducting the investigation. It has taken a while, I find this unfortunate. But we will have to wait until we hear what they conclude.”

Wise listed in London in 2021, a move which Käärmann said the firm did not regret.

Käärmann and finance boss Matt Briers are set to the leave the business, as Käärmann announced in May that he would take a temporary sabbatical while Briers revealed he will also leave as he recovers from a bicycle accident that occurred last year.