British fintech company Wise experienced a significant boost in its stock prices after reporting a substantial increase in profits. The London-based online money transfer firm revealed that its profit before tax tripled to £146.5 million ($186.5 million), while earnings per share also tripled to 11.53 pence. The stock has seen a 6.58% gain in the past five days and a 16.64% increase in the last month. The surge in Wise’s stock is attributed to a 34% growth in customer numbers and a rise in interest rates implemented by the Bank of England. Wise’s total income reached £964.2 million, buoyed by a 73% YoY increase in customer deposits.

This surge in stock prices comes as a positive outcome amidst the challenges faced by Wise. Last year, the company was fined $360,000 by the Abu Dhabi Global Market’s Financial Services Regulatory Authority for violating anti-money laundering laws. Wise also faced tax evasion accusations by UK tax authorities, resulting in a fine of £365,651 for CEO and co-founder Kristo Kaarmann. Although Kaarmann has paid the fine, an investigation by the Financial Conduct Authority is ongoing and may impact his position as CEO.

FAQs

What were Wise’s financial results?

Wise reported a tripling of its profit before tax to £146.5 million and a tripling of earnings per share to 11.53 pence. The company’s total income surged to £964.2 million, driven by a 73% YoY increase in customer deposits.

What factors contributed to Wise’s stock surge?

Wise’s stock saw a significant increase due to a 34% growth in customer numbers and rising interest rates implemented by the Bank of England.

What challenges has Wise faced recently?

Wise was fined $360,000 by the Abu Dhabi Global Market’s Financial Services Regulatory Authority for violating anti-money laundering laws. The company’s CEO and co-founder, Kristo Kaarmann, was also fined £365,651 for tax evasion by UK tax authorities.

What is the current status of the investigation into the tax evasion allegations against Wise’s CEO?

An investigation by the Financial Conduct Authority is ongoing, and the outcome may impact Kristo Kaarmann’s position as CEO.