Greater Profits Are Made By Wise Due To Higher Interest Rates

Shares in Wise, the money transfer app, soared by more than 18% on Tuesday after the company reported that its full-year pre-tax profits had tripled.

The UK-based firm posted pre-tax profits of £146.5 million for the year, up from £43.9 million the year before. Revenue was up 51% to £846.1 million.

The company’s strong performance was driven by a number of factors, including rising interest rates, which have boosted the income from Wise’s interest-bearing deposits. Wise also benefited from increased customer growth, with the number of active customers rising to 10 million in 2022.

Looking ahead, Wise is expecting income to grow by between 28% and 33% in full-year 2023. The company said that it is confident in its ability to continue to grow, despite the challenging economic environment.

Wise’s share price hit £6.20 on Tuesday afternoon, up about 18% but still below its 2021 IPO price.

Wise’s strong performance in 2022 is a positive sign for the company. The company is well-positioned to continue to grow in the coming years, as the global economy continues to recover from the COVID-19 pandemic.

However, Wise’s share price is still below its 2021 IPO price. This suggests that investors are still cautious about the company’s future prospects. Wise will need to continue to grow its profits and revenue in order to convince investors that it is a good long-term investment.

Overall, Wise’s strong performance in 2022 is a positive sign for the company. However, investors are still cautious about the company’s future prospects. Wise will need to continue to grow its profits and revenue in order to convince investors that it is a good long-term investment.