- Wise shares skyrocketed by 18% on Tuesday, thanks to a surge in profit driven by increasing interest income.
- The customer base expanded by 34%, hitting 10 million users, with trading volumes rising 37% to £104.5 billion.
- CEO Kristo Kaarmann is currently under investigation for an overdue tax bill, potentially threatening his leadership position.
As Tuesday graced the markets, online money transfer giant Wise saw its shares surge by an impressive 18%. This dramatic rise came as the company recorded a considerable boost in profits, largely owing to the rise in interest income.
In an official statement released to the stock market, Wise highlighted that its pre-tax profits had soared, tripling to an astounding £146.5 million (approximately $186.5 million). Moreover, the earnings per share followed suit, tripling in turn to a remarkable 11.53 pence.
Accompanying this surge in profits was a notable customer growth of 34%, amassing a total of 10 million users by the end of March 2023. The firm's trading volumes also displayed considerable growth, marking an increase of 37% to reach £104.5 billion.
By midday in London, Wise's trading value stood at around £6.18, reflecting an almost 18% increase on the day. The company, like many others in the fintech space, has been reaping the benefits of surging interest rates. Just last week, the Bank of England escalated interest rates to 5%, a move influenced by the ongoing struggle with high inflation.
Meanwhile, Wise CEO, Kristo Kaarmann, found himself entangled in an investigation by Her Majesty’s Revenue and Customs regarding an overdue £365,651 tax bill. The outcome of this investigation, though primarily a personal issue for Kaarmann, holds potential implications for his role within the company.
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