Wise PLC (LSE:WISE) shares fell despite the payments technology company lifting its outlook, saying it intends to share "much of the benefit" of higher rates with customers.
After a third quarter where income was boosted by higher interest rates and increased costs of changing currencies, the company upped its full-year guidance for income growth to 68-72%, from 55-60% previously.
The fintech firm reported £268.7mln of income for the three months to end-December, 80% higher than a year earlier and up 17% on the second quarter, as 5.8mln customers moved £26.4bn of money around, up 28% year on year.
“As interest rates increase, our customers expect a return on the balances they hold with us, and we intend to share much of the benefit of higher rates with customers,” said Wise’s chief executive Kristo Käärmann, who last summer was investigated by the UK financial watchdog over a tax default.
The average fee for customers to send money was 0.66% in the quarter, up from 0.64% in Q2 this year and 0.60% in Q3 last year.
Wise shares were down 6.67% at 598.40p in early afternoon trade.