In a trading statement released today, Hargreaves Lansdown reported that net new business rose in the third quarter that ended 30 September but that revenue dropped slightly over the same period.
The UK-based online stockbroker and funds platform stated that net new business reached £1.3bn ($1.8bn) over the quarter compared to £0.8bn for the corresponding period in 2020.
The increase was driven by higher client numbers, ongoing wealth consolidation on the company’s platform and flows into Active Savings – a Hargreaves Lansdown online account that enables customers to pick and mix savings products from a range of banks and building societies.
Revenue for the period was £142.2m, down by 1% from last year (2020: £143.7m). Asset-based revenues were higher, driven by net inflows and positive market movements as seen on the FTSE All Share Index, which increased by 23% in the 12 months to 30 September.
Share dealing volumes
This was more than offset by a drop in interest on client money and a reduction in share dealing revenues, both of which were predicted in previous guidance.
The company stated that, as anticipated, share dealing volumes had declined across the quarter following the Covid lockdowns, averaging just 861,000 deals per month compared to 980,000 in the same quarter last year and 479,000 in the year before.
This equates to around 40,000 deals per day, which corresponds to the outlook Hargreaves Lansdown offered for this financial year.
Commenting on the latest numbers, Chris Hill, the firm’s chief executive officer, said: “These results are against the backdrop of an easing out of lockdown and ongoing market uncertainty and highlight the importance of a resilient business and the strength of our proposition.”
He added: “The normalisation of revenues post pandemic is in line with our expectations and our focus, as always, remains on our clients and their lifelong needs.”