Hargreaves Lansdown plc has announced its trading update for the three months ending on March 31, 2024 (Q3 FY24), showcasing robust growth and continued client engagement amidst evolving market dynamics.

Hargreaves Lansdown Reports Strong Performance in Q3 FY24

Financial Highlights

• Total revenue for the quarter stood at £199.7 million, marking a notable increase from £188.1 million in Q3 2023. This growth was primarily driven by heightened dealing volumes and elevated platform revenue stemming from increased Assets Under Administration (AUA).
• Net new business remained steady at £1.6 billion, in line with the previous year, propelled by client focus on utilizing Individual Savings Accounts (ISA) and Self-Invested Personal Pension (SIPP) allowances.
• The company witnessed a net client growth of 34,000 during the quarter, indicating sustained traction in SIPP, ISA, and Active Savings accounts. Client retention remained strong at 91.4%, despite a slight dip from the previous year, reflecting prevailing macroeconomic conditions.
• Share dealing volumes averaged 794,000 per month, demonstrating a consistent uptrend from the prior year. Overseas deal volumes represented 23.6% of total deals, reflecting an expanding global investor base.
• Client cash balances increased during the quarter to £12.4 billion, attributed to contributions made to tax-wrapped accounts ahead of the fiscal year-end deadline.

Strategic Initiatives and Outlook

• Hargreaves Lansdown continues to witness momentum extending into April, with clients capitalizing on investment opportunities at the onset of the tax year.
• CEO Dan Olley emphasized the growing popularity of newer products such as ready-made pensions, cash ISA offerings, and Active Savings, driving a record number of net new clients and robust AUA growth.
• Moreover, Active Savings achieved a significant milestone, surpassing £10 billion in AUA since the end of the quarter, underlining the success of the company’s innovative savings solutions.

Hargreaves Lansdown remains well-positioned to navigate evolving market dynamics and capitalize on emerging opportunities, leveraging its robust client base and diversified product portfolio.

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