Despite tough economic conditions, Hargreaves Lansdown saw profit before tax increase by 50 per cent to reach £402.7mn in the year to June 30, 2023, up from £269.2mn the previous year.
The company's full year results, published this morning (September 19) also showed assets under administration increased by 8 per cent to £134bn in the year to June 2023, compared with £123.8bn the year before.
In addition, revenue was up by 26 per cent to £735mn.
Chief executive officer Dan Olley, who took on the role in December 2022, said: "We have delivered a robust financial performance for our full year in what continues to be a challenging broader economic environment.
"As I begin my CEO tenure, it is clear to me that at its core this is a strong business with fantastic heritage that has significant potential to benefit from the structural, demographic, and regulatory shifts in the UK and the expected growth in the wealth market.
"My early focus is to ensure we are set up to capture this growth opportunity, that we have pace of execution, cost discipline as we travel on this journey, and that we are giving our people the best opportunity to deliver for our clients and shareholders.”
Olley said the company welcomed 67,000 new clients meaning it now has more than 1.8mn customers who save and invest with the firm.
Despite the growth, this is down from a peak of 233,000 in 2021 and 92,000 last year.
Dr James Fox, an equity research analyst at investing comparison platform InvestingReviews.co.uk, said: "The surge in net interest income played an important role in driving revenue up 26 per cent to £735.1mn. Meanwhile, underlying diluted earnings per share rose 47 per cent to 74.3p, outperforming consensus of 68.4p.
"However, amid a challenging economic backdrop, net new client growth slowed again, at 67,000 for the year. This is significantly down on the 233,000 net new clients achieved in 2021.
"With regards to investor activity, the slight uptick in trade volumes towards the end of the financial year may be a sign of improving sentiment. Moreover, with interest rates likely to moderate over the coming year, the return of capital to equities could provide a further boost."
tara.o'connor@ft.com
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