As we've built and launched more features to help people and businesses move and manage their money, adoption of the account has continued to increase. In Q2 FY25, 53% of active personal customers used multiple features of the Wise Account, up from 44% in Q2 FY24. For businesses, this adoption rate was 60%, up from 58% in Q2 FY24.

More customers using the account features has led to an increase in customer holdings with Wise too. As at 30 September 2024 customers held £18.5bn with us, 31% higher than this time last year and this includes over £3.8bn of funds in the 'Assets' feature^[4].

As we enhance our infrastructure, develop our products and reduce pricing, we see a greater number of Wise Platform partners choosing Wise to help them and their customers with their cross border needs.

In the last six months we began new Wise Platform partnerships with Nubank (Brazil), Qonto (France) and AbbeyCross (UK). Most recently we were delighted to announce a partnership with Standard Chartered to power the bank's cross-border payment service, SC Remit, enabling their customers in Asia and in the Middle East to send money in 21 currencies including USD, CAD, EUR, GBP, SGD, HKD, JPY in a matter of seconds.

We're confident in the outlook for the second half of the year and beyond

Over the last six months we've made important steps in the enhancement of our infrastructure which are going to contribute to further improvements to speed and unit cost over time. Wise will become increasingly faster, cheaper and more convenient: an ideal infrastructure partner via Wise Platform.

To make this vision a reality, now is the time to invest in long term growth.

We expect the investments in pricing in the first half of FY25 to move us closer to achieving our target underlying profit before tax margin range of 13-16% in H2 FY25, from an elevated position of 22% in the first half.

We are making very fast progress on our mission. Just over a year ago we had four direct connections and today we are very close to having twice this number live, with all the benefits that flow from this. With further investments planned, I'm more confident than ever that Wise is on the path to creating an exceptionally valuable company for customers and shareholders. 

Kristo

A financial update from Emmanuel, our newly appointed CFO

Wise's mission is very clear, and we are investing in the infrastructure and products customers need to move and manage their money around the world. Over time this will enable Wise to become 'the' network for the world's money. 

This strategy is working: over 11m customers used Wise for cross border transactions in the last six months, 25% more than the prior year, and with many customers increasingly using Wise as the solution for banking internationally.

This has resulted in a strong financial performance for the period with 19% underlying income growth and high levels of profitability with an underlying profit before tax margin of 22%. This margin was temporarily elevated above our target range of 13-16%, due to the timing of price investments which, having been made in H1, will reduce the margin towards our target range in H2 FY25.

More customers, using more products: the main driver of 19% underlying income growth

In the first six months, over 25% more active customers used Wise to send or convert money internationally. Of the 11.4m active customers in H1 FY25, 10.8m were personal customers (25% YoY) and 523k were business customers (+11% YoY). 

Business customer growth has been lighter over the last year due to the impact of pausing of onboarding in the UK and EU in the second half of FY24. We have been open to new customers again in these markets since the beginning of FY25 and have seen some improvement in growth as a result.

Our customers sent or converted £68.4bn of volume in H1 FY25. This is a 19% increase on last year (21% increase on a constant currency basis), with growth in volumes continuing to be driven by higher numbers of active customers.

Compared to volume growth of 19%, revenue from cross border transactions grew 9% to £419.1m for the period, as we reinvested efficiency gains through lower pricing to drive further growth. This is only possible thanks to our long term investments in infrastructure and a relentless focus on efficiency. In doing so, we were able to reduce the cross border take rate 5bps compared to the prior year, from 67bps to 62bps.

Wise Account adoption is driving a wider use of products, higher rates of customer activity and retention. Card and other revenue (predominantly interchange revenue) increased by 52% to £172.8m, while customers balances held in the Wise Account grew 20% £14.7bn, the first 1% yield on which contributed £70.5m to underlying income in the period (up 23%, in line with average balances).

As a result, underlying income grew 19% to £662.4m, representing a CAGR of 36% over the last four years.

Underlying gross profit margin representing capacity for investment

Underlying gross profit grew 30% to £505.0m benefiting from higher revenue from active customer growth, Wise Account adoption and a temporarily higher price for cross border services ahead of reinvesting unit cost reductions.

The underlying gross profit margin was 76% in H1 FY25 as cost of sales as a proportion of underlying income reduced from 30% to 24% YoY in H1 FY25, driven by c.3ppt of efficiency gains due to operational improvements and c.3ppt variability in some cost types that were temporarily lower in the period, such as FX costs.

Much of the excess underlying gross profit margin, amount deemed to be sustainable, was reinvested into pricing reductions through the first half of the year, with a lower underlying gross profit margin therefore anticipated in H2 FY25.

Expense growth in line with business growth

Our underlying gross profit allows us to remain highly profitable while also allowing us to fund significant investment in our operational and corporate teams, and to fund investment in growth through product development, marketing, and improved levels of service.

Administrative expenses increased by 24% in H1 FY25 to £366.7m as we continue to invest in current and future growth opportunities. Within this, third party costs increased faster than employee benefit expenses as we continue to use a portfolio of specialist outsourcing providers for specific elements of servicing customers, allowing us to flex capacity up and down more quickly, at a lower cost, but with the same high standards being applied.

In line with our expectations, we have grown the number of Wisers to over 6,000 by the end of the first half of FY25. These Wisers help us on our mission; building products, improving our infrastructure, supporting our core functions and helping to attract and serve even more customers.

Highly profitable with limited reliance on interest income

In the first half of FY25 we generated an underlying profit before tax of £147.1m, a 57% increase over last year with an underlying profit before tax margin that remained elevated at 22%. 

Our 'interest income above the first 1% yield' was £230.2m in the period, up 49% on the prior year as a result of the 23% growth in average customer balances and, on average, higher central bank rates. 

In calculating our IFRS profit before tax, we add this additional interest income to our underlying profit before tax and deduct the value of 'benefits paid relating to customer balances' of £84.8m. 

As per our interest income framework, of this £230.2m of interest income, it is intended for 20% (£46.0m) to be retained while aiming to return the remaining 80% (£184.2m) to customers. We partly achieved this with £84.8m being paid to customers in the period, leaving £99.4m which was incidentally retained, the majority of which relates to the UK where we are currently unable to directly pay interest to Wise Account holders under the terms of our licence.

Reported profit before tax increased significantly to £292.5m with earnings per share for the six months at 21.1p.

Strong and growing balance sheet

As at 30 September 2024, we held £15.9bn of cash and highly liquid investment grade assets, up 10% from £14.5bn at the end of FY2024. This includes assets in respect of the £14.7bn of customer balances. It also includes £1.1bn of our 'own cash' (£1.1bn at the end of FY2024), with the increase from our operating performance largely offset by a reduction in our rolling credit facility drawings as we repaid the debt finance given our strong cash position.

We are well capitalised for the future and as at 30 September 2024, our Group eligible capital was £883.0m (excluding un-audited FY25 profits), significantly above our minimum regulatory capital requirements.

Our capital position, built through sustained profitability, enabled us to initiate a programme in FY23 to reduce the dilutive impact on share count that arises through issuing new stock to satisfy stock based compensation. We expect to deploy c.£70m through this programme in FY25, purchasing shares to cover new grants throughout the year and as at 30 September 2024 we have completed £34.6m of share purchases.

Our outlook for FY25 and beyond

We're building a business with world class fundamentals with the potential to scale volumes from billions to trillions, generating exceptional value for both the customers and owners of Wise.

With the initiation of what we hope to be a progression of price reductions as we drive towards this mission, we continue to expect underlying income growth of 15-20% in both FY25 and over the medium term from FY24.

We also continue to target a medium term underlying profit margin of between 13-16%, a range that we expect to move closer to achieving in the second half of FY25.

Emmanuel Thomassin

UK listing reforms

In July, the FCA introduced reforms to the UK listing regime, replacing the premium listing segment with the Equity Shares (Commercial Companies) Category (ESCC) and revising the UK listing rules. Wise's listing was automatically transferred from the standard listing segment onto the Equity Shares (Transition) Category.

To be eligible to step up to the ESCC, in addition to needing FCA approval to transfer, Wise would also need to amend certain parts of its Articles of Association, subject to approval from shareholders.

The Board is consulting extensively with shareholders and will provide an update in due course.

Results presentation

A presentation of the half-year year results will be held at 9.30am GMT Wednesday, 6 November 2024 at Wise's London offices in Shoreditch. We invite you to join the live stream using this link: https://vimeo.com/event/4661398.

Enquiries

Martin Adams / Lawrence Nates - Investor Relations

owners@wise.com

Sana Rahman - Communications

press@wise.com

Brunswick Group

Charles Pretzlik / Sarah West / Nick Beswick

Wise@brunswickgroup.com

+44 (0) 20 7404 5959

About Wise

Wise is a global technology company, building the best way to move and manage the world's money. With Wise Account and Wise Business, people and businesses can hold over 40 currencies, move money between countries and spend money abroad. Large companies and banks use Wise technology too; an entirely new network for the world's money.

Co-founded by Kristo Käärmann and Taavet Hinrikus, Wise launched in 2011 under its original name TransferWise. It is one of the world's fastest growing tech companies and is listed on the London Stock Exchange under the ticker WISE.

In fiscal year 2024, Wise supported around 12.8 million people and businesses, processing approximately £118.5 billion in cross-border transactions, and saving customers over £1.88 billion.

DISCLAIMER

This report may include forward-looking statements, which are based on current expectations and projections about future events. These statements may include, without limitation, any statements preceded by, followed by or including words such as "target", "believe", "expect", "aim", "intend", "may", "anticipate", "estimate", "forecast," "plan", "project", "will", "can have", "likely", "should", "would", "could" and  any other words and terms of similar meaning or the negative thereof. These forward-looking statements are subject to risks, uncertainties and assumptions about Wise and its subsidiaries. In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur.

Past performance cannot be relied upon as a guide to future performance and should not be taken as a representation that trends or activities underlying past performance will continue in the future, and the statements in this report speak only as at the date of this report. No representation or warranty is made or will be made that any forward-looking statement will come to pass and there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements.

Wise expressly disclaims any obligation or undertaking to update, review or revise any forward-looking statements contained in this report and disclaims any obligation to update its view of any risks or uncertainties described herein or to publicly announce the results of any revisions to the forward-looking statements made in this report, whether as a result of new information, future developments or otherwise, except as required by law.

The information contained in this report is not intended to provide, and should not be relied upon for, investment, tax, legal or financial advice. To the maximum extent permitted by applicable law and regulation, Wise disclaims all representations, warranties, conditions and guarantees, whether express, implied, statutory or of other kind. To the maximum extent permitted by applicable law and regulation, Wise shall not be liable for any loss, damage or expense whatsoever, whether direct or indirect, howsoever arising, whether in contract, tort (including negligence), strict liability or otherwise, for direct, indirect, incidental, consequential, punitive or special damages arising out of or in connection with this document, including (without limitation) any course of action taken on the basis of the same

Principal risks and uncertainties

The principal risks and uncertainties that the Group faces for the rest of the financial year

are consistent with those previously reported in the Annual Report and Accounts 2024. For

a more detailed overview of how we manage our risks at Wise, please refer to the 'Risk

Management' section on pages 62 to 77 of the Annual Report.

Responsibility statement of the directors in respect of the interim financial statements

The directors confirm that these condensed interim financial statements have been

prepared in accordance with UK adopted International Accounting Standard 34, 'Interim

Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the

United Kingdom's Financial Conduct Authority and that the interim management report

includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:

●     an indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

●     material related-party transactions in the first six months and any material changes in the related-party transactions described in the last annual report.

The directors of Wise plc are listed in the Annual Report and Accounts 2024, with the exception of the following change: Emmanuel Thomassin was appointed on 1 October 2024. A list of current directors is maintained at https://wise.com/owners/corporate-governance

On behalf of the Board of directors:

Kristo Käärmann, Director

Date: 6 November 2024

Independent review report to Wise plc

Report on the condensed consolidated interim financial statements

Our conclusion

We have reviewed Wise plc's condensed consolidated interim financial statements (the "interim financial statements") in the Unaudited interim results of Wise plc for the six month period ended 30 September 2024 (the "period").

Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

The interim financial statements comprise:

·     the Condensed consolidated statement of financial position as at 30 September 2024;

·     the Condensed consolidated statement of comprehensive income for the period then ended;

·     the Condensed consolidated statement of changes in equity for the period then ended;

·     the Condensed consolidated statement of cash flows for the period then ended; and

·     the explanatory notes to the interim financial statements.

The interim financial statements included in the Unaudited interim results of Wise plc have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

Basis for conclusion

We conducted our review in accordance with International Standard on Review Engagements (UK) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Financial Reporting Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We have read the other information contained in the Unaudited interim results and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.

Conclusions relating to going concern

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed. This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410. However, future events or conditions may cause the group to cease to continue as a going concern.

Responsibilities for the interim financial statements and the review

Our responsibilities and those of the directors

The Unaudited interim results, including the interim financial statements, is the responsibility of, and has been approved by the directors. The directors are responsible for preparing the Unaudited interim results in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. In preparing the Unaudited interim results, including the interim financial statements, the directors are responsible for assessing the group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or to cease operations, or have no realistic alternative but to do so.

Our responsibility is to express a conclusion on the interim financial statements in the Unaudited interim results based on our review. Our conclusion, including our Conclusions relating to going concern, is based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion paragraph of this report. This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

PricewaterhouseCoopers LLP

Chartered Accountants

London

6 November 2024