Last checked at 
(Alliance News) - Wise PLC on Tuesday reported sharp first-half growth and predicted a robust annual margin outcome, with the money transfer firm unable to return interest rates hikes to customers "at the level we would like".
The London-based firm said revenue in the half-year to September 30 increased 25% to GBP498.2 million from GBP397.4 million a year prior. Including interest income, total income was 58% higher at GBP656.0 million from GBP416.1 million. Interest income alone jumped to GBP157.8 million from GBP18.7 million.
Pretax profit jumped year-on-year to GBP194.3 million from GBP51.3 million
Customer numbers in the second-quarter were 32% higher year-on-year at 7.2 million.
The company affirmed that it expects full-year income growth between 33% and 38%. It had raised its income guidance in October from a previous 28% to 33% growth forecast.
It added that its adjusted earnings before interest, tax, depreciation and amortisation margin will "will be considerably higher" than its 20% medium-term target during this financial year. Wise said this is due to "the higher interest rates and the reality that we are unable to return interest to customers at the level we would like".
Its half-year adjusted Ebitda margin surged to 36.7% from 22.0% a year earlier.
The UK's Financial Conduct Authority has put pressure on firms to ensure they are passing on interest rate rises to savers.
Wise shares rose 3.1% to 709.80 pence each on Tuesday morning in London.
By Eric Cunha, Alliance News news editor
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
