Wise PLC (LSE:WISE) is becoming an increasingly popular way for people to transfer their wealth around the globe, with the FTSE 100 fintech disruptor handling £57.4 billion in total payment volumes in the six months ending 30 September, a 12% year-on-year increase.
The group grew its customer base by over 30% year over year, supporting 25% growth in revenues and a 163% increase in underlying earnings for the period.
Higher interest rates earned on customer balances greatly benefitted Wise in the period, with gross profit surging 86% to £488.9 million on a 74.5% gross profit margin.
Wise has long maintained that it would like to share a cut of the profits earned by interest with customers, but is yet unable to do so “at the level we would like”, the group said today.
Payments handled by Wise are also becoming faster, with 60% of payments instantly executed in the second quarter of the period, 81% within an hour and 94% within 24 hours.
Harsh Sinha, chief technology officer and interim chief executive, stated: "In the first six months of this year we continued to make progress against our mission of building the best way to move and manage the world's money.
“We continued to invest in making our account features available to more people and businesses, and we made great progress in building the network for the world's money - having completed our integration into NPP and announcing our collaboration with Swift."
Wise anticipates a significant increase in its income growth for the fiscal year, projecting a range between 33% and 38%, a notable upward revision from previously estimated growth of 28% to 33%.
The adjustment in expectations is attributed to a robust first half, coupled with higher-than-anticipated income from interest.
Wise projects consistent income growth of over 20% over the medium term with an EBITDA target margin of 20%.