AJ Bell assets soar as weaker trading environment weighs on Hargreaves Lansdown
- AJ Bell: Client numbers rose to 476,532 during the 12 months ending September
- The company also said AuA in its platforms business rose to a record £70.9bn
- Hargreaves Lansdown only gained 8,000 extra customers in the last quarter
Two of Britain's biggest online trading platforms reported solid asset and customer growth, despite choppy markets and weak investor sentiment.
AJ Bell client numbers increased by over 50,000 to 476,532 during the 12 months ending September, with around two-thirds of this growth coming from its direct-to-consumer segment.
The Manchester-based group's assets under administration in its platforms business rose 11 per cent to a record £70.9billion thanks to strong asset flows and positive market fluctuations of 4 per cent.
Bigger team: Online trading platform AJ Bell reported that client numbers grew by more than 50,000 to 476,532 in the 12 months ending September
In its investments division, net inflows climbed by about £600million to £1.65billion, while managed assets jumped by 68 per cent to £4.7billion.
Michael Summersgill, chief executive at AJ Bell, attributed the jump in assets to interest in the firm's 'straightforward and low-cost investment range'.
He added: 'The long-term growth drivers of the investment platform market remain strong, and we look forward to announcing the annual results for what has been another successful year.'
AJ Bell shares increased by 3.5 per cent to 263.2p on Thursday morning, making them the top riser on the FTSE 250 Index.
Hargreaves Lansdown also saw customer and asset growth, but momentum has moderated amid a weaker trading environment.
The group said 8,000 customers joined the platform in the three months ending September, compared to 17,000 during the equivalent period last year.
Strong result: Hargreaves Lansdown revaled revenue expanded by 13 per cent to £183.8million for the three months ending September due to the increase in net interest margin
Its said new clients were tending to invest in self-invested personal pensions and cash savings products, such as short-dated bonds and money market funds.
Bristol-based Hargreaves also revealed that share dealing volumes on its platform averaged 634,000 per month, a decline of 66,000 from the previous year.
Yet overall revenue still expanded by 13 per cent to £183.8million due to an increase in net interest margin offsetting the impact of a slowdown in share trading.
Dan Olley, CEO of Hargreaves, said: 'We continue to see net client growth and positive net new business despite the macroeconomic backdrop and its ongoing impact on investor confidence and client behaviour.'
Hargreaves Lansdown shares were among Thursday morning's top fallers, slumping 5.3 per cent to £6.98 by 9:30am.
Both AJ Bell and Hargreaves were major lockdown-era winners as Britons stuck at home poured some of their extra savings into the stock market.
Many of them were young people trying retail investing for the first time rather than the typical customer base of these companies - wealthier and near retirement age.
The end of Covid-related restrictions and cost-of-living pressures has led to growth slowing down as households struggling with soaring food and energy bills lack enough money to put aside for investment.
