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Wise shares up as profit guidance hiked

Wise shares up as profit guidance hiked

Shares in money transfer behemoth Wise have leapt on the back of an income guidance upgrade for FY24.

Ina statement to the stock exchange, Wise says income grew 51% YoY, while active customer numbers were up 32% to 7.2 million.

The firm has also been boosted by rising interest rates, enabling it to earn a 3.8% yield on £12.3 billion in account balances held on behalf of customers.

As a result, the firm is lifting its profit guidance to 33-38%, up from the previous rate of 28-33%.

Harsh Sinha, interim CEO and chief technology officer, predicts more to come: "This quarter we launched a new service in China, enabling expatriates to send their salaries back home. For business customers we re-commenced onboarding new customers in 13 European countries where we had previously paused new customer onboarding whilst we upgraded our servicing and operational capacity. We also launched Correspondent Services in collaboration with Swift, a completely new solution that allows banks and other financial institutions to simply route their Swift messages to Wise and send payments through our fast and low-cost payments network."

Nonetheless, the firm cautions that macroeconomic conditions remain uncertain, reflected in slower volume growth among high value customers.

Shares in the firrm jumped over two percent at market opening and continued to climb throughout the morning.

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