Wise's shares soar as customer growth fuels 51% profit surge, plans to cut fees further

Wise has reported a significant increase in profits, buoyed by an expanding customer base and strategic price reductions.

For the six months ending on 30 September, the London-based fintech company announced a pretax profit of £292.5m, marking a substantial 51 per cent rise from the £194.3m recorded in the corresponding period the previous year, as reported by City AM.

Following the announcement, Wise's shares soared by as much as 8.1 per cent in early Wednesday trading, reaching their highest point since June.

The surge in Wise's profits can be attributed to a 25 per cent growth in active customers, now totalling 11.4 million. These customers transacted £68.4bn through the fintech during the six-month span, which is a 19 per cent increase compared to last year.

Wise, known for its current accounts and international money transfer services, generates revenue by charging a modest fee for each transaction.

The company's revenue climbed by 19 per cent to £591.9m over the half-year, while its cost of sales saw a five per cent decrease to £152.9m.

Positioning itself as a challenger to traditional, expensive bank foreign exchange services, Wise boasts more than 65 licence