Wise sees underlying profit growth of up to 20% this year

(Sharecast News) - UK banking and money transfer company Wise said it expected underlying income to grow 15-20% this financial year as a sharp rise in customer numbers and higher interest rates boosted earnings. The company on Thursday reported underlying pre-tax profit of £248.1m for the year to March, up 226%. Reported pre-tax profits surged to £481.4m from £146.5m and income rose by a quarter to £1.05bn.

Customer numbers swelled by 29% to 12.8 million.

Wise, which offers current accounts in multiple currencies that allow customers to send cash overseas for a fraction of the exorbitant fees High Street banks charge, has benefited from higher global interest rates, with interest income more than tripling over the year to £485.2m from £140.2m.

"Over the medium term we expect to operate to an underlying profit before tax margin of 13-16%," Wise said on Thursday.

"Driven by customer growth, we expect underlying income growth of 15-20% over the medium term from 2024. Full-year 2025 underlying income growth over 2024 expected to be between 15-20%."

Reporting by Frank Prenesti for Sharecast.com