Hargreaves Lansdown Sees 6% Quarterly Increase in Net New Business for Q4 FY23

Hargreaves Lansdown, a UK investment and online trading firm, today issued a trading update for the quarter ended June 30, 2023 (Q4 FY23), showing an increase of 6% in net new business on a quarterly basis.

Trading performance:

• During the three months, Hargreaves Lansdown delivered net new business of £1.7 billion, 6% higher than £1.6 billion in the previous quarter, despite moderated flows being seen across the market.

• Share dealing volumes recorded 685,000 per month in the quarter, decreasing 11% compared to 770,000 per month in Q3 FY23 and decreasing 12% compared to 779,000 per month a year ago.

• Active Savings experienced net inflows of £0.8 billion during the period, 14% higher than £0.7 billion in the prior quarter, which was equal to the metric in Q4 FY22.

• The number of active client for the quarter increased 13,000 with client retention at 92.0% broadly in line with last year. The number growth of active client recorded 23,000 in Q3 FY23.

• Asset retention rate rose from 89.1% in the prior quarter to 89.7%, while the rate was 91.5% in Q4 FY22.

• Closing AUA came in at £134.0 billion for the quarter, increasing 2% on a quarterly basis (Q3 FY23: £132.0 billion) and increasing 8% on a yearly basis (Q4 FY22: £123.8 billion).

Chris Hill, CEO at Hargreaves Lansdown, commented: "We delivered net new business of £1.7 billion in the period, up 6% on the previous quarter. The tax year end season remains a critical time for our clients and this year we focused on supporting them to navigate the changes to the tax landscape, making the most of their allowances and delivering further value to our overall client proposition.

"The improvements in the previous quarter, including the launch of a new cash ISA, three new Portfolio Funds and price reductions on our LISA and JISA accounts, were further enhanced with the removal of fees for dividend reinvestment and regular monthly investing along with the addition of new partner banks to Active Savings. The breadth of and continued investment into our client proposition, means we remain well positioned to grow and support both new and existing clients with their investment and savings needs."