Wise has faced some headwinds recently, yet the company’s stock has soared following a surge in profits and revenue.
British fintech online money transfer firm behaviour(LON:WISE) stock jumped nearly 18% on Tuesday in response to the company’s profit growth. In a recent statement, the London-based fintech said its profit before tax tripled to £146.5 million ($186.5 million). The company also reported that its earnings per share tripled to 11.53 pence.
According to Marketwatch data, Wise stock has gained 6.58% in last five days and 16.64% in one month. Since January, WISE has grown by 11.09%, and has grown by a whopping 97.6% in the past year. As of 1:49 pm BST, WISE was trading at £624.40 after climbing almost 19% on the day. The company’s previous closing price was £525.40.
Wise reports a 34% increase in customer growth with a total of 10 million by March 31, 2023. Furthermore, the company’s volume climbed 37% to reach £104.5 billion. In terms of revenue, Wise touched £846.1 million, up 51% from the previous year’s £559.9 million. Buoyed by an increase in customer deposits, Wise’s total revenue grew 73% year-on-year (YoY), reaching £964.2 million.
Typically, most of Wise’s profits came from rising interest rates introduced by the Bank of England (boe, Last week, BoE increased interest rates 50 basis points were added for the 13th time in a row. The Monetary Policy Committee voted 7–2 in favor of an additional, raising the BoE’s base rate to 5%.
To fight rising inflation, the apex bank is continuously raising interest rates. In May, the annual Consumer Price Index (CPI) rose 8.7%, higher than the 8.4% expected by economists.
Wise Records stock spikes despite headwinds
The rally in Wise stock is a silver lining amid the company’s issues. Last year, the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market Fined Wise $360,000 for violating anti-money laundering (AML) laws.
In a statement, the FSRA said that the local Wise subsidiary, Wise Nukud, had not built and operated an adequate AML infrastructure to comply with the agency’s requirements. Although the FSRA stated that it did not find any actual cases of money laundering, it identified inadequacies and failures in setting up guidance systems and controls.
Wise’s problems were compounded last year after UK tax authorities accused CEO and co-founder Christo Karmon of tax evasion. Her Majesty’s Revenue and Customs fined the CEO £365,651, about $495,000 at the time, for the late filing of his personal tax return for the 2017/2018 tax year. A spokesperson for the company confirmed that Carman has paid the fine and added the required late filing penalty.
In a recent interview with BBC Radio, Carman appeared to downplay the incident. according to him:
“It really has nothing to do with the business that we’re running. It was a personal mistake. I was really late on my taxes a long time ago and paid a fine.
Nonetheless, Carman said the Financial Conduct Authority (FCA) is investigating the incident. If found guilty, the outcome of the FCA’s investigation could affect his position as CEO.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip the mysteries of crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When Tolu is not deeply immersed in crypto stories, he enjoys music, loves to sing and is an avid movie lover.
Bitcoin Crypto Related Post