Hargreaves Lansdown saw a 125% increase in net new clients during Q3 2024, compared to the same period last year, from 8,000 an 18,000, according to its quarterly trading statement published today (29 October).
Total active clients increased by 4.8% to 1.9m, marking a steady uptick during each one of the last four financial quarters. Client retention rate also reached a new high of 92%, compared to 91.7% during Q3 2023 and 91.1% in Q2 2024.
Asset retention rate also increased marginally compared to the previous quarter, from 87.7% to 88.6%. However, Q3 and Q4 last year saw higher asset retention rates of 89% and 89.3%, respectively.
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Revenue came in at £196.5m, a £500,000 dip compared to Q2 this year, but a 6.9% increase compared to Q3 2023’s revenue of £183.8m.
In terms of assets under administration, funds, shares, cash holdings, HL funds and active savings all came in higher at the end of Q3 this year than they did during both Q2 2024, and Q3 2023. Opening AUA for the period was £155.3bn while closing AUA came in at £157.3bn, marking a 1.3% increase.
While net new business for the platform fell by £300m over the quarter, net new business from Hargreaves’ Active Savings accounts increased by £800m, amounting to total net new business of £500m. This is three times less than net new business seen in Q2 and Q1, which came to £1.6bn in both instances, but remains steady compared to Q3 2023’s net new business of £600m.
Positive market movements also contributed £1.5bn to AUA.
Commenting on the trading statement in relation to HL’s impending acquisition by a consortium of private equity investors, Dan Olley, chief executive officer, said: “The proposed acquisition of Hargreaves Lansdown has been approved by shareholders and is now subject to certain outstanding regulatory approvals, with completion expected in Q1 2025.
“In the meantime, we remain as committed as ever to supporting our clients with the very best service, experience and value, and on executing our strategy. We are particularly mindful of tomorrow’s Budget, and will be on hand to support and guide our clients following any potential changes that are made.
“With millions of households without enough saved to enjoy a comfortable lifestyle in later life, it has never been more important for the UK to save and invest for their financial futures, and as the UK’s largest platform for retail investors HL is well placed to help them do so.”
