(Reuters) – Money-transfer firm Wise Plc raised its full-year total income growth forecast on Tuesday, saying the UK central bank’s interest rate hikes were helping boost its revenue.
The London-based company now expects total income to rise 68%-72% in the fiscal year ending March 31, compared with its previous forecast of 55%-60% growth.
Wise said it expects adjusted core profit margin – a key measure of profitability – for the second half of the fiscal year to be 22% higher than the first.
The company said it continues to offer “significantly lower” rates than those offered by the banks from which its customers join.
“As interest rates increase … we intend to share much of the benefit of higher rates with customers,” chief executive and co-founder Kristo Kaarmann said in a trading statement.
Wise said transaction volumes grew 28% year-on-year in the third quarter, while the number of active customers increased 33% during the period.
(This story has been corrected to remove the reference to company as a lending firm in paragraph one)
The fintech firm said more than 50% of its cross-border payments were completed instantly for the third consecutive quarter.
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Nivedita Bhattacharjee and Savio D’Souza)