Rising interest rates lead to bumper year for Hargreaves Lansdown
Bristol-based wealth management firm Hargreaves Lansdown has reported a 50 per cent rise in its profits this year, as customers took advantage of savings packages as interest rates soared.
The group reported this morning (Tuesday) that revenues for the year to June 30 were up 50 per cent to £402.7 million, while revenue increased 26 per cent to £735.1 million.
Pre-tax profits also soared from £269.2 million to £402.7 million. The firm recorded new business of £4.8 billion and Assets Under Administration of £134 billion – up eight per cent on the previous year.
Its number of active clients grew to 1,804,000 – an increase of 67,000 in the year.
CEO Dan Olley told investors: “We have delivered a robust financial performance for our full year in what continues to be a challenging broader economic environment.
“We welcomed a further 67,000 net new clients meaning we now support over 1.8 million with their savings and investments needs, with client retention stable at over 92 per cent.
“We saw notable growth into our Active Savings proposition which continues to show the benefits of our diversified business model as we give our clients access to competitive rates for their cash.
‘We delivered revenue growth of 26 per cent year-on-year with cost growth within the guided range delivering a statutory profit of £402.7 million, up 50 per cent on 2022.
“As I begin my CEO tenure, it is clear to me that at its core this is a strong business with fantastic heritage that has significant potential to benefit from the structural, demographic, and regulatory shifts in the UK and the expected growth in the wealth market.
“My early focus is to ensure we are set up to capture this growth opportunity, that we have pace of execution, cost discipline as we travel on this journey, and that we are giving our people the best opportunity to deliver for our clients and shareholders.”