Hargreaves profits grow 12%

Money-Cash-Coins-GBP-Pounds-UK-700x450.jpgHargreaves Lansdown saw its profit before tax grow 12 per cent to £146.9m in the six months ending 31 December 2017, as it reports increased new business and client numbers.

In a results statement published today, Hargreaves reported a 43 per cent increase in net new business from £2.34bn for the six-month period ending 31 December 2016 to £3.34bn in the same period of 2017.

The business saw active client numbers grow to 1,015,000, which was an increase of 61,000 since 30 June 2017.

The results statement says Hargreaves gained clients from BlackRock and is expecting clients from Old Mutual later this year due to the transfer of direct back books.

It adds: “We should also recognise that operational issues on a competitor platform resulted in significant levels of transfer activity across the period.”

Hargreaves Lansdown unaffected by Brexit as revenues jump

Assets under administration increased to £86.1bn. In the same period in 2016 the business had total AUA of £70bn.

Hargreaves estimates that client queries related to Mifid II increased calls to the business by more than 50 per cent at times.

Chief executive Chris Hill says: “I’m pleased to report another strong period of growth for Hargreaves Lansdown for client numbers, revenue and profit. We have a significant market opportunity with a clear strategy focused on our clients’ needs and offering great value and service to them.”

He says: “Our aim of making it easy and efficient for clients to manage their savings and investments in a secure environment and empowering them to save and invest with confidence is at the heart of our business, and was reflected in our continued growth during the first half of our 2018 financial year.”

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