Wise Reports a Surge in Pre-Tax Profits Due to Increased Customer Balances

Wise, the payments giant, saw a dramatic increase of 280 per cent in pre-tax profits during the first half of 2023, which equates to a total of £194.3m. This significant growth is attributed to the rise in interest rates.

Encouraging Deposits Boosts Wise’s Interest Income

Since the end of 2022, Wise has been encouraging its payment customers to keep their deposits within the fintech firm. As a result, its total customer cash holdings now exceed £8bn. Due to these increased deposits, the interest income for Wise during the first six months up to 30th September 2023 surged by 848 per cent. This leap signifies an increase from £18.7m to £157.8m in the first half of the year.

Steady Growth in Revenue and Customer Base

The total revenue for the company for the same period was £498.2m, marking a 25 per cent year-on-year increase. Over the first six months of 2023, Wise’s customer base grew by more than 30 per cent. This growth in customers supported a 25 per cent surge in revenue, a 58 per cent increase in income, and a 163 per cent increase in adjusted EBITDA for the period.

International Money Transfers Remain at Wise’s Core

Despite these increases in other areas, international money transfers remain the core of Wise’s business. Over the first half of the year, £57.4bn was sent abroad via the company, representing a 12 per cent year-on-year increase in the volume of money sent.