AJ Bell Shares Jump as Strong Momentum Continues in Q3

UK investment platform AJ Bell (LON: AJB) reported a strong third quarter on Thursday, with continued growth in customers and assets under administration (AUA).

This positive performance resulted in the company's shares jumping at the open. At the time of writing, AJ Bell shares are up 2.9% at 408.5p.

“The third quarter of our financial year saw a continuation of the strong momentum reported in our previous update,” said Michael Summersgill, Chief Executive Officer at AJ Bell.

AJ Bell's customer numbers increased by 25,000 in the quarter, reaching a total of 528,000, up 13% year-on-year. Assets under administration reached a record £83.7 billion, a 20% increase over the last year.

Gross and net inflows across the platform were significantly higher than the previous year, with net inflows reaching £1.7 billion, 55% higher than the same period last year. AJ Bell Investments also saw its assets under management (AUM) rise to £6.3 billion, up 47% year-on-year.

AJ Bell attributes this growth to its dual-channel strategy, catering to both advised and direct-to-consumer (D2C) markets. They reported strong organic growth in D2C customers, exceeding double the level achieved in the prior year.

Looking ahead, AJ Bell is confident about the future. “We enter the final quarter of our financial year with strong momentum,” commented Summersgill. “Our dual-channel strategy and continued investment into our brand, technology and products puts us in an excellent position to capture further market share gains in both the advised and D2C platform markets.”

AJ Bell also commented that it recently proposed a simpler ISA system to the government and launched a competitive interest rate on ISA accounts to encourage potential investors.