Hargreaves Lansdown (HL) Trading Update summary

Trading highlights

• Net new business reached £1.6 billion for the quarter, with closing Assets under Administration (AUA) at a record £155.3 billion.

• Net new clients totaled 24,000, an 85% increase year-on-year, bringing active clients to 1,882,000.

• Share dealing volumes averaged 838,000 per month, up from 685,000 in the same period last year; overseas deals made up 20.6% of total volumes.

• Client retention rate was 91.1% and asset retention rate was 87.7%, both slightly lower than the previous quarter, reflecting macroeconomic factors and increased Active Savings scale.

• Client cash balances ended the quarter at £12.4 billion, down from £13.1 billion in the previous quarter.

Strategic and operational progress

• Focus on client service and experience led to a Net Promoter Score (NPS) of 44 for H2, up from 41 in H1.

• Recently launched Managed and Multi-Index Funds exceeded launch targets, contributing £0.4 billion to HL Funds' £0.5 billion quarterly growth.

• Active Savings benefited from the multi-bank cash ISA launch and new transfer functionality, supporting net flows.

• Continued investment in client value proposition, service excellence, and experience enhancement.

• Emphasis on leveraging scale, brand, and data insights to drive sustainable growth.

Market and client trends

• Net new business was driven by clients maximizing ISA and SIPP allowances around the tax year end.

• Active Savings saw strong performance, with balances rising to £10.6 billion.

• HL Funds closed at £10.3 billion, up from £9.8 billion in the previous quarter.

• Market movements contributed £4.0 billion to AUA growth in the quarter.

• Client engagement and product innovation remain key to attracting and retaining clients.