Hargreaves Lansdown Net New Clients Jump in Q4

Hargreaves Lansdown (LON: HL.) reported a trading update on Friday, with a significant rise in new client numbers and net new business.

The investment platform saw a net inflow of 24,000 clients in the three months to June 30, 2024, representing an 85% increase year-on-year. This brings the total number of active clients to 1,882,000.

Net new business for the quarter reached £1.6 billion, reflecting continued momentum around the tax year end. The company said this was driven by clients utilising their ISA and SIPP allowances. Assets Under Administration (AUA) also reached a record high of £155.3 billion.

“While we still have more to do to deliver against our strategic priorities, we are making progress and I'm pleased to see ongoing good momentum this quarter,” commented CEO Dan Olley. “Our ongoing focus on client service, client experience and value continue to deliver results.”

Hargreaves Lansdown added that its client satisfaction also improved, with Net Promoter Score (NPS) reaching 44 for the second half of the year, up from 41 in the first half.

The company's recently launched Managed and Multi-Index Funds proved popular, exceeding launch targets and contributing £0.4 billion of the £0.5 billion growth in their HL Funds range.

Share dealing volumes averaged 838,000 per month in the quarter, up from 685,000 in Q4 2023. This continued the increase in volumes Hargreaves Lansdown has seen since the first half of the year, with overseas deal volumes representing 20.6% of total deals in the quarter.

At the end of the quarter, client cash balance was £12.4 billion, down from £13.1 billion in Q4 2023.

Looking ahead, Hargreaves Lansdown said remains committed to investing in client value proposition and delivering sustainable growth.