Wise reported a 13% increase in underlying profits and a 27% rise in administrative expenses for the first fiscal half-year. Customer and volume growth expanded by 18% and 24%, respectively. The company is focusing on improving payout times and direct connections into local payment systems, settling 74% of payments instantly.

Business volume growth of 24% surpassed business customer growth of 17%, with platform volumes accounting for 5% of total volumes. Expenses rose by 27% due to increased hiring, with full-year expenses expected to be around GBP 1 billion. Wise is investing in scaling the business and serving its growing customer base.

Morningstar raised Wise’s fair value estimate to GBX 800 from GBX 750 due to strong performance in business volumes. Despite overvaluation, the company has future growth potential through scaling its business and platform opportunities. However, Wise is passing on efficiencies to customers, impacting operating leverage.

Read more at Morningstar: Wise Earnings: We Raise Our Fair Value Estimate on Better-Than-Expected Business Volumes