Hargreaves Lansdown posts 6% increase in net new business for Q2 2023
Chris Hill (pictured) is the outgoing CEO of Hargreaves Lansdown
The company said the inflows were due to clients focusing on utilising their ISA and SIPP tax allowances in the final days of the 2023, and start of the 2024, financial years.
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Despite the 6% increase, the Q2 2023 figure was still lower than the £1.8bn in net new business posted in Q2 2022.
Assets under administration also grew during the quarter, closing at £134bn — a 2% rise from the first three months of 2023 — thanks to £1.7bn in net new business and a £300m positive market movement.
The platform posted active client growth of 13,000 for the three-month period — the same level as in Q2 2022 — with client retention at 92%, compared with 91.3% in the same period last year. Asset retention saw a small decrease, down to 89.7% from 91.5% in Q2 2022.
Active savings recorded net inflows of around £800m, up from £700m in Q2 2022. Share dealing volumes dropped over the second quarter of 2023, however, at 685,000 per month — 11% lower than in Q1 2023 and 12% less than the same period last year.
The drop was attributed to low investor confidence due to the cost of living crisis, rising interest rates and market volatility.
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Chris Hill, outgoing CEO of Hargreaves Lansdown, said: «We delivered net new business of £1.7bn 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.
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