Fintech firm Wise has announced plans to buy back more than $500 million (£379 million) of shares to enhance investor returns, even as it reported lower annual pre-tax profits. The money transfer and payments company, which moved its primary listing from London to New York in May, saw pre-tax profits fall 8% to $660.4 million (£500.3 million) for the year ending March 31, while operating expenses jumped 39% to $1.9 billion (£1.4 billion).
Revenue Growth and Customer Expansion
Despite the profit decline, Wise reported a 19% increase in net revenues to $2.5 billion (£1.9 billion), driven by a 21% rise in active customers to 18.9 million. The company also forecast further revenue growth within its 15% to 20% target range and profitability near the top end of guidance for the upcoming financial year.
Share Buyback Programme Details
The share buyback programme, expected to exceed $500 million (£379 million), will allocate about 40% to its ongoing employee share trust purchase programme. This move aims to reward shareholders despite the profit dip.
Regulatory Scrutiny and Legal Provisions
Earlier this month, it was revealed that Belgian authorities are investigating Wise over money laundering concerns, reportedly involving transactions worth over £400 million. The company confirmed that the Brussels prosecutor had lodged queries, causing its stock to plummet nearly 20% at one point. In its full-year results, Wise set aside $23.8 million (£18.03 million) for legal and regulatory provisions in 2025-26, up from $17.6 million (£13.3 million) the previous year.
Operational Highlights
Wise's revenues were boosted by a 31% surge in cross-border transaction volumes to $243.5 billion (£184.5 billion). Customer holdings grew 40% to $39 billion (£29.6 billion), and card spend increased 37% to $44 billion (£33.3 billion). The firm maintains a secondary listing in London after shifting its primary listing to New York to access a larger stock market and attract new investors. Since its origins as a pure money transfer company, Wise has expanded significantly in recent years.
