LONDON (dpa-AFX) - Hargreaves Lansdown plc (HL.L), on Tuesday, issued a trading update for the third quarter and reported a 6% growth in revenues.
The company's Q3 revenues rose 6% to GBP 199.7 million from GBP 188.1 million, reflecting the increased dealing volumes and higher platform revenue from higher AUA levels, more than offsetting the year-on-year reduction in revenue on cash from lower NIM and cash balances.
Net new business was £1.6 billion in the quarter compared to £1.6 billion last year, reflecting a significant step up versus the first half of the year driven by net flows onto the Platform as clients focused more on utilizing their ISA and SIPP allowances.
The company stated that active savings continues to perform well and benefited from the launch of the first-of-its-kind multi-bank cash ISA which provides clients with the full suite of Cash ISA products from multiple banks.
Net client growth of 34,000 in the quarter versus 23,000 in the third quarter of last year, driven by net new clients in the SIPP, ISA, and Active Savings accounts. Client retention at 91.4% and asset retention at 88.0% continue to reflect the macroeconomic backdrop for those of its clients who need to make cash withdrawals.
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