Hargreaves Lansdown saw total revenue hit £183.8mn in the third quarter of 2023.
This number, reported for the three month period to September, represented a 13 per cent increase on the revenue reported for the first quarter of this year (£162.9mn).
In a trading update, published yesterday (October 19), the firm reported a net client growth of 8,000 in the quarter, a fall on the growth of 17,000 that was reported in Q1, which Hargreaves Lansdown said was driven by new clients in the Sipp and active savings accounts.
Hargreaves Lansdown chief executive officer, Dan Olley, commented: “We continue to see net client growth and positive net new business despite the macroeconomic backdrop and its on-going impact on investor confidence and client behaviour.
“Clients are looking to invest more in cash than risk-based investments, from our active savings offer, giving easy access to a range of banking partners, to money market funds and short-dated bonds.
“Combining this with informative and relevant content provides our clients with a wide range of solutions to meet their saving and investment needs.”
The reported client retention and asset retention, 91.7 and 89 per cent respectively, was said to reflect the muted macroeconomic backdrop and the need for various cohorts of clients to make client withdrawals.
Additionally, the update reported that active savings continued to perform well and was the “key driver” of net flows as clients favour cash savings over risk based investments.
Hargreaves Lansdown also reported net new business of £0.6mn, a slight decrease on the £0.7mn reported in the first quarter of this year.
This was said to be reflective of moderated flows being seen across the market.
tom.dunstan@ft.com
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