Wise forecasts robust growth with 21% increase in active customers and £1.4bn income

Wise said it expected to report a double-digit jump in income ahead of its capital markets day

Shares in global fintech company Wise saw a six per cent increase in early trading today, following the release of preliminary figures for its current financial year on Thursday. The firm is set to provide further updates during its capital markets day.

The presentation will also include updates on the current financial year, with full results due to be posted on June 5, as reported by City AM.

Wise, which specialises in facilitating easy international money transfers for consumers, anticipates a 21 per cent growth in active customers to 15 million and a 16 per cent increase in underlying income.

Based on these projections, the fintech firm expects to generate an income of £1.4bn in the current year. However, it predicts a one per cent drop in its profit margin.

The money transfer company forecasts an underlying income growth of 15 to 20 per cent in the 2026 financial year, with pre-tax profit margins aligning with top estimates.

Wise has also revealed plans to dilute its Employee Benefit Trust share purchase programme to prevent shareholder dilution from historical stock-based compensation (SBC) grants, which equate to around 25 million shares.

The fintech firm reiterated its listing change following the Financial Conduct Authority's reforms to the UK listing regime in 2024. Wise's listing was moved to the Equity Shares Category in July 2024.

Wise made its debut on the London Stock Exchange on July 7, 2021, and over its 14-year history, it has transferred over £0.5tn across borders.

In its January quarterly trading update, the company disclosed that cross-border volumes had surged by 24 per cent to £37.8bn. The firm's accounts also saw increased adoption, driving a 39 per cent rise in card and other revenue.

London Stock Exchange sees decline as UK firms opt to remain private longer, says UK Finance report

UK Finance has highlighted the evolving relationship between British businesses and public exchanges like the London Stock Exchange, calling for a new approach in light of significant changes. The finance industry body, which represents the banking sector, observed a declining emphasis on public listings with companies remaining privately held for prolonged periods, resulting in a "shifting" of market dynamics, as reported by City AM. Its analysis, supported by professional services firm EY, pointed to a noticeable surge in private capital markets. The growth rates are impressive: venture capital investments have been increasing by 20% annually on a compound basis, private equity by 11%, and private debt by an astonishing 43% since 2013. "The decision where to join public markets is now more nuanced," the finance body noted in its publication. One particular area of concern outlined in the report is the reduced market capitalisation of UK-listed firms, which has plummeted by 17% from 2013 levels. Moreover, last year witnessed a sharp drop in the number of businesses on the London Stock Exchange, with 88 departures including Paddy Power parent Flutter and tech success story Darktrace, contrasted with just 18 new entrants. The UK Finance document stressed the urgency for action: "A unified course of action, looking across public and private capital markets, needs to be taken now." To address this, the report advocates for a stronger integration between public and private markets, which could pave the way for innovative strategies and solutions that support business growth and enhance market liquidity. UK Finance has voiced its support for schemes like the London Stock Exchange's Private Intermittent Securities and Capital Exchange System (PISCES), emphasising that it could significantly improve the link between public and private markets and ensure "smoother transitions" to public listings. The trade body suggests collaboration as a means to rectify financing imbalances, especially as the government aims to "cut the red tape" hindering entrepreneurial growth. Alongside this, UK Finance contends that regulatory shifts should be in harmony with the broader industrial strategy and initiatives laid out by the government. They advocate for the removal of the 0.5 per cent stamp duty on UK equity trades, arguing it would facilitate capital deployment and enhance the efficiency of UK financial markets. This stance follows the unsuccessful appeal to Chancellor Rachel Reeves to eliminate the charge in her Spring Statement. Further steps proposed by UK Finance to bolster expansion include augmenting support mechanisms for businesses emerging from university-led research, with the goal of sparking further waves of UK business achievements. Moreover, the establishment of regional hubs is recommended to assist start-up leaders with navigating investment discussions, product commercialisation, and making the most of UK tax incentives, which collectively could drive nationwide innovation. Conor Lawlor, UK Finance's managing director of global banking, markets and international affairs, expressed confidence in the UK's ability to nurture companies and projects: "[The UK has] a world-class ecosystem of public and private markets, and a real opportunity to strengthen the way they work together to support the most innovative companies and national projects." "By harnessing the full potential of private markets alongside public markets, we can ensure businesses of all sizes have access to the capital they need to scale." Axe Ali, who leads the private equity and venture capital team at EY, commented: "Closer public and private market collaboration could help to address financing imbalances across key UK regions and sectors, and ensure the UK's most innovative, growing businesses can access vital capital."

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Close Brothers shares volatile as motor finance Supreme Court case kicks off

Shares in FTSE 250 lender Close Brothers experienced volatility during early trading on Tuesday as the first day of the motor finance hearing commenced. The bank was among the top fallers in the FTSE as markets opened, following a downgrade from City broker Peel Hunt, as reported by City AM. The broker expressed surprise at the "extent" of guidance downgrades announced by Close Brothers. The lender's shares plummeted as much as five per cent after markets opened, before rallying to over four per cent up. However, by midday, the bank had fallen back into the red. As of 1300 BST, it was two per cent down on its market-open share price. Peel Hunt predicted that Close Brothers' net interest margin (NIM) – a crucial metric used by banks that illustrates the difference between interest earned on loans and interest paid on deposits – would decrease to 6.7 per cent in the second half of 2025. This would represent a loss of 60 basis points after the lender recorded a NIM of 7.3 per cent in the first half of the year. Peel Hunt assigned a 'Hold' rating to the lender and set a target price of 327p. Close Brothers opened at 277.20p on Tuesday. Analysts also reduced the bank's earnings per share by 15 per cent for the 2025 financial year to 50.6p. This continued into 2026 with a one per cent downgrade. Analysts wrote: "We believe the shares appear optically cheap, but the upcoming Supreme Court ruling... is a key unknown." Following the Court of Appeal's ruling in October 2024 that it was unlawful for banks to pay a commission to a car dealer without the customer's informed consent, lenders including Close Brothers and First Rand are escalating the fight to the Supreme Court to get the ruling overturned. The Financial Conduct Authority (FCA) has stated that if the banks face an adverse judgement, it will confirm an industry-wide redress scheme within six weeks. This case could have significant financial implications for the lending industry, with RBC analysts projecting total compensation claims could reach £32bn.

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Barclays and Natwest stock plunge is 'looming global recession' warning

The FTSE 100's leading banks have dragged down the index in light of President Trump's tariff offensives, with experts cautioning that their losses might signal an impending global recession. Barclays saw its shares drop nearly five per cent in midday trading on Monday and has endured a nearly 20 per cent fall in the past five days, as reported by City AM. NatWest also experienced a dip of over seven per cent after the market opened, but later reclaimed some of its lost ground. By midday, it was down by one per cent. Susannah Streeter, money and markets chief at Hargreaves Lansdown, commented: "Banks are seen as barometers for economic health, and given the steep losses, red lights are flashing about a looming global recession." As of Monday, the FTSE 350 banking sector index had declined by two per cent. Before being hit hard by tariffs, this sector was the FTSE 100's second-best performer out of the other 39 sub-groups in February. In the last month, the index has shed close to 16 per cent of its value. Nevertheless, Lloyds registered a slight recovery on Monday, nudging up by 0.1 per cent at midday. Equity analysts Vivek Raja and Gary Greenwood from Shore Capital remarked: "Changes in economic activity levels could affect demand for credit and bad debt formation." They also noted that Asia-focused banks such as HSBC and Standard Chartered may bear greater impacts compared to largely UK-focused peers like Barclays, Lloyds, and NatWest. Raja and Greenwood have indicated that the moderation of interest rates and their future trajectory could affect lenders' net interest margins, a crucial measure of a bank's profitability from lending activities. "Increased market turbulence could dampen capital markets activity levels while potentially boosting market activity," the analysts further commented. Speaking to City AM, Greenwood suggested that domestic banks are likely to have corporate clients "that are directly exposed to tariffs". He added, "Banks are essentially just leveraged plays on the underlying economies in which they operate." For smaller and mid-cap banks, Raja and Greenwood foresee a lesser impact. They noted that Arbuthnot Latham, Paragon, and Vanquis are "domestically focused and therefore less at risk from the international trade fallout". Despite not experiencing losses as significant as their FTSE 100 counterparts, these smaller lenders have not been able to avoid the global sell-off.

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Banks face turmoil as HSBC and Barclays shares plummet amid escalating global trade war

The 'Big Five' banks on the FTSE 100 were engulfed in losses on Wednesday as tensions escalated in the global trade war. China retaliated by hiking its tariff on US goods to 84 per cent, a response to President Donald Trump's 50 per cent levy that came into effect today, pushing China's total import tax to a staggering 104 per cent, as reported by City AM. HSBC shares took a hit of over four per cent due to Beijing's countermove. Barclays and Standard Chartered also felt the heat, with their shares dipping nearly five per cent. Stocks had already been under pressure in early trading as Trump showed no intention of retreating from his tariff strategy. Domestically-focused lenders Lloyds and Natwest saw their shares fall nearly three and four per cent respectively. Russ Mould, investment director at AJ Bell, commented: "Yesterday's fragile recovery in stocks has been shattered by renewed selling as reciprocal tariffs on what the Trump administration regards as the 'worst offenders' comes into effect." "Investors had initially taken some positives from a willingness in the White House to negotiate with Japan and Israel but an escalation with China triggered another sell-off on financial markets." Bloomberg calculations on Tuesday revealed that more than $700bn (£546bn) of global bank stocks' market value has evaporated since Trump's 'Liberation Day.' HSBC, with its Asia-centric operations driving losses, has alone seen almost $30bn (£23bn) wiped off its value. Britain's prime lending institutions are scheduled to unveil their half-year financial reports towards the end of July, a period that may bring unwelcome news to investors as they absorb the repercussions. Shore Capital's equity analyst Gary Greenwood commented on the anticipated content of the reports, indicating they are expected to mirror "volatility in capital markets". He elaborated: "IPO's that were going to happen, impact in market related activity, impact in wealth management areas – that's where you'll feel it first." Greenwood also predicted lenders' future guidance would likely suffer due to tariffs. He explained further, saying: "On an accounting basis, banks might start to add a bit to their provisions." "More uncertainty could make them more cautious about lending and risk appetite could change to not push as hard in terms of growth." Such developments pose additional challenges for Chancellor Rachel Reeves, who has been actively advocating for banking leaders to help bolster growth within the UK.

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Gold prices dip despite safe haven status amid Trump's new tariffs and global market turmoil

Despite its status as a safe haven amidst global trade uncertainties, gold prices have seen a decline for the third consecutive session. Over the past week, gold has dropped nearly three per cent in US dollar terms, following a steady rise since the onset of 2024, as reported by City AM. This drop coincides with a worldwide slump in stock prices in the wake of US President Donald Trump's comprehensive tariffs, which economists fear could plunge the world into recession. On the day of Trump's tariff announcement, the precious metal performed robustly, momentarily reaching a new all-time high of $3,225 after the president disclosed tax figures by country, before settling back to $3,125. However, it has since pulled back, even briefly dipping below the coveted $3,000 mark this morning. The depreciation in gold prices has occurred despite a fall in the value of the US dollar against other major currencies: when measured in euros, gold has declined almost six per cent since Thursday morning. While tariffs may play a significant role, analysts at Tatton Investment Management suggest that the end of the financial year last week may have distorted gold markets due to portfolio rebalancing. Given gold's strong performance in recent months, it would have become over-represented in many stockpicker portfolios, leading to a temporary sell-off to adjust proportions, according to the investment firm's analysts. As the broader market took a hit, many investors were likely compelled to liquidate their positions in gold, resulting in downward pressure on its price. "Margin calls from brokers is likely to have exacerbated some of the market movements," offered Susannah Streeter, head of money and markets at Hargreaves Lansdown. She went on to say: "Investors using more risky margin accounts can borrow money to invest, but falls in asset prices are prompting demands they deposit more money, as the value of assets used as collateral falls." Moreover, Streeter observed that increased unease among investors has led many to cash in on profits accrued over the past year and pivot to cash holdings. Alternatively, Michael Brown, a senior research strategist at Pepperstone, attributed the decline in gold's value to the unwinding of tariff risk premium following an exemption of bullion imports from tariffs.

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HSBC and Barclays shares tumble as Trump's new tariffs shake up FTSE 100

Shares in Britain's leading banks plummeted in early trading on Thursday following President Trump's tariff announcement, which sent shockwaves through the London stock market. Europe's largest bank, HSBC, saw its shares tumble by over 5%, with Barclays experiencing a fall of more than 4%, as reported by City AM. Standard Chartered, a member of the FTSE 100 index, suffered the brunt of the sell-off, with its share price dropping over 7%. The FTSE 100 index itself retreated beyond 1% as the markets opened, reacting to Trump's decision to impose a 10% tariff on UK imports to the USA. Dan Coatsworth, an investment analyst at AJ Bell, commented to City AM: "With so much uncertainty around the global economy as a result of Liberation Day, it seems as if fewer investors want to own banks despite many paying generous dividends which can provide comfort during rocky market conditions." He remarked that banking is inherently tied to economic fortunes, contributing to the sector's vulnerability in the worldwide market downturn: "Banking is an economically sensitive industry, which explains why shares in the sector have been caught up in the global market sell-off." Coatsworth pointed out the specific challenges for HSBC and Standard Chartered: "Trump's tariffs are particularly punishing for various parts of Asia and that puts HSBC and Standard Chartered in the firing line given their major reliance on that part of the world." He continued to illustrate the broader implications: "Businesses will be spooked by tariffs and that could lead to reduced investment, which in turns suggests less demand to borrow from banks or for advisory services on M&A activity." Coatsworth also highlighted Brexit's impact: "The same applies to Europe and the US which are key places where Barclays does business." Barclays, HSBC and Standard Chartered all have significant operations beyond the UK, including in the US and Asia. A deceleration in global trade could result in reduced revenue for these banks due to a decreased demand for their services in facilitating international partnerships through trade finance and other financial services.

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Close Brothers stock soars past target price while HSBC, Barclays and Standard Chartered tumble

Shares in FTSE 250 lender Close Brothers experienced a surge on Thursday morning, contrasting with the downward trend of banking rivals HSBC, Barclays and Standard Chartered. The lender saw gains peak at ten per cent during early trading before settling around five percent, as it began to recover from recent losses, as reported by City AM. In contrast, Standard Chartered led the FTSE 100's losses, dropping nearly 10 per cent, while Barclays and HSBC fell by close to seven per cent and over six per cent respectively. Close Brothers' stock has been under pressure over the past six months due to its involvement in the car mis-selling scandal. This week, the saga moved to the Supreme Court, where Close Brothers is attempting to overturn an October ruling by the Court of Appeal. The ruling deemed it unlawful for banks to pay commission to a car dealer without the customer's informed consent. Following the verdict, Close Brothers' shares plunged almost 25 per cent and have remained unstable since. The Supreme Court's judgement could take several months, but the Financial Conduct Authority has stated it will confirm an industry-wide redress scheme within six weeks if the banks receive an unfavourable verdict. As the Supreme Court hearing commenced on Tuesday, the stock experienced fluctuations throughout the day. Peel Hunt rated the stock a 'hold' in a note issued on April 1, setting a target price of 277.20p. However, following Thursday's gains, Close Brothers surpassed the analyst's target, reaching highs of 310p. Analysts have revised their forecast for Close Brothers' full-year earnings per share, reducing it by 15% to 50.6p. Their guidance on the lender's full-year net interest margin – a key banking indicator of the difference between the rates at which a bank borrows and lends – has also been cut to 7%, with an anticipation that it will drop further to 6.7% in the second half. RBC Capital Markets adjusted their target price for Close Brothers down to 340p from 360p according to a note issued last week, yet they maintained an 'Outperform' rating. This suggests that they anticipate the company's shares to "materially outperform sector average over 12 months."

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Nikhil Rathi secures another five-year term as FCA chief amidst UK regulatory overhaul

Nikhil Rathi has been reappointed as the chief executive of the Financial Conduct Authority (FCA) for a further five years, tasked with the government's new mandate to cut back on unnecessary and repetitive regulation, as confirmed by the Chancellor. Rathi, who previously served as a Treasury official and the CEO of the London Stock Exchange, will continue his leadership at the FCA, the UK's principal financial regulator, as reported by City AM. Should he complete this term, Rathi's tenure at the helm of the FCA will reach a full decade. The Chancellor has chosen to maintain stability in the role, highlighting that Rathi's contributions have been "crucial" to the government's ambitious regulatory reform efforts aimed at streamlining the UK's regulatory framework to eliminate perceived impediments to economic expansion. On Christmas Eve, Rachel Reeves and Keir Starmer issued a directive to the heads of the UK's ten leading regulatory bodies, urging them to "tear down the regulatory barriers" they believe are constraining economic progress. This initiative to orientate the UK's regulatory bodies towards promoting growth has led to the departure or removal of several regulatory leaders, including those at the Competition and Markets Authority and the Solicitors Regulation Authority. The campaign has also triggered a significant reshuffle within the financial regulatory landscape, exemplified last month by the merger of the Payments Systems Regulator with the FCA, which aims to minimise redundant regulatory obstacles for businesses. Rathi will oversee the seamless integration of the merger. Upon hearing of his reappointment, he commented: "I am honoured to be reappointed by the Chancellor. The FCA does vital work to enable a fair and thriving financial services sector for the good of consumers and the economy." In the previous month, both the FCA and the Bank of England's Prudential Regulation Authority abandoned their initiatives to regulate firms' diversity, equity and inclusion (DEI) performance. Reflecting on these actions and other measures to reduce regulatory burden, Rathi stated: "I am proud of the reforms we have delivered to support growth, bolster operational effectiveness, set higher standards and to keep our markets clean and open." Reeves expressed her approval, saying: "Nikhil Rathi has been crucial in this government's efforts to reform regulation so it supports growth and boosts investment – I am delighted he will be continuing his leadership of the FCA."

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FTSE 100 crumbles again as Trump's 'Liberation Day' tariff assault continues

The FTSE 100 had a gloomy start on Friday, still feeling the effects of Trump's 'Liberation Day' comments as it opened in negative territory. In early trading, the United Kingdom’s leading index was down by approximately 1.2%, with its mid-cap counterpart, the FTSE 250, also seeing a decline of nearly 1%, as reported by City AM. Banks were among those feeling the brunt during market opening, extending a downside pattern from Thursday's session. Natwest shares dropped over five per cent, while Barclays took a hit exceeding four per cent. Following its position as Thursday's biggest loser on the FTSE, Standard Chartered’s shares continued to wane, experiencing another fall of over four per cent. Conversely, British American Tobacco and SSE emerged as top performers in early dealings, each securing gains in the region of two per cent. Likewise, the retail giant behind Primark, Associated British Foods, saw its shares ascend over two per cent. AJ Bell’s investment director Russ Mould commented: "With markets having suffered their worst week in five years, investors were hiding under their duvet on Friday hoping the pain would go away." He went on: "Unfortunately, the relentless selling continued, with markets falling across Asia and Europe and futures prices suggesting the US will follow suit upon commencement of trade later today." Mould further remarked that "countless sectors" are poised for impact from tariffs, yet the plethora of "moving parts" presents a challenge to "know where to begin to comprehend the situation." "Investors looking to buy on the dip were spoiled for choice given the sharp declines seen on the market this week. It's now a question of when investors feel brave enough to go shopping. Today's extended sell-off implies investors are still too nervous to take the plunge," he added. On Thursday, the FTSE 100 experienced a sizeable drop, shedding 133 points and closing at 8,474.74 – a 1.6% decrease from the previous day's total. In a bold move, Trump imposed a baseline 10% import levy on all countries trading with the US during his Wednesday address, with increased rates for those classified as "worst offenders." A 10% import tariff was levied on the UK while the European Union suffered a steeper 20% hike. Commentators have noted with surprise that 'Markets appear to have been unprepared' for such trade measures. Stocks across Europe also faced a downtrend, with Germany's DAX falling 0.8%, France's CAC 40 dipping by 0.9%, and Amsterdam’s AEX index experiencing a 0.5% decline. The announcement of tariffs contributed to Wall Street recording some of its most substantial losses since 2020. On the Nasdaq Exchange, big tech firms including Apple and Nvidia saw sharp drops, declining nine and eight percent respectively. The S&P 500 was not immune to the downturn, with a near five percent fall, while the Dow Jones Industrial Average saw a four percent dive. Hargreaves Lansdown's head of equity research Derren Nathan commented: "Despite months of sabre-rattling by Donald Trump, markets appear to have been unprepared for the depth and breadth of tariffs announced by the White House." As a result of the tumult across the pond in the US and the White House's significant measure, "The FTSE 100 is set to open down a touch further, after US stocks suffered their worst day in five years."

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Cash ISAs fall out of favour as 57% more people put money into Stocks and Shares ISAs

Cash ISAs are losing favour with investors, while the popularity of Stocks and Shares ISAs has soared by 57 per cent amid proposed reforms to the investment wrapper. Investengine's analysis of HMRC data shows that new Cash ISA accounts have dropped seven per cent over the past five years, despite recent government plans to overhaul the ISA system, as reported by City AM. Between 2018/19 and 2022/23, the amount held in Stocks and Shares ISAs rose 37 per cent compared to a mere nine per cent increase in cash ISA value. This has resulted in a staggering £431bn being held in Stocks and Shares ISAs, 46 per cent more than the £294bn in cash ISAs. The announcement follows Chancellor Rachel Reeves' confirmation in the Spring Statement that the government intends to reform the ISA system, with these changes expected to be unveiled in the Autumn Budget. Rumours had circulated that the cash ISA's limit would be cut from £20,000 to £4,000 ahead of last week's fiscal event, but Reeves ultimately scrapped these plans. The proposed changes to the ISA regime largely stem from the government's ambition to enhance the culture of retail investment in the UK. According to Investengine's data, there are now 3.8m retail investors with a Stocks and Shares ISA, up from 2.4m five years ago, while the number of cash ISA subscriptions has decreased from 8.5m to 7.9m. The data aligns with recent survey findings that only 31 per cent of Britons possess a cash ISA, and a mere 16 per cent hold a Stocks and Shares ISA. Yet, the survey also uncovered that 17 per cent of UK adults are unaware of the Stocks and Shares ISA, while a quarter acknowledge hearing about it but lack any understanding of it. "Although reforms have been delayed, our analysis shows stocks and shares ISAs are in fact increasing in popularity without the explicit need to make cash ISAs less appealing," commented Andrew Prosser, head of investment at Investengine.

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