Hargreaves Lansdown pledges to hike dividend after profit grew by 30 per cent despite market turbulence
Investment platform Hargreaves Lansdown today pledged to hike its dividend after it successfully boosted its profits in the face of widespread market turbulence.
The online trading platform, which is known for its index fund offerings, said it grew its revenues by a fifth (20 per cent) over the final six months of 2022 despite the global economic downturn.
Hargreaves Lansdown’s uptick in revenues saw the Bristol firm boost its profits by 30 per cent, in the face of soaring inflation and plummeting stock markets worldwide.
HL’s financial growth came as it took on 31,000 more customers in the second of 2022 in expanding client base to serve 1.768m people.
The FTSE 100 firm vowed to up its dividend by 3.6 per cent to 12.7p per share, even as the value of assets it manages dropped by 10 per cent, to £127.1bn, due to tough global markets.
The trading firm said it had managed to benefit from higher interest rates in achieving a higher net interest margin (NIM).
Hargreaves Lansdown chief executive Chris Hill, who is set to exit his position this year, said the trading firm had been able to capitalise on its position as the largest player in the market.
Hill explained that as the platform with the “largest client base in the sector” HL has more “comprehensive” data than any rival, meaning it is best able to cater to “client needs”.
He noted the firm has continued to build out its “proposition” with the launch of new funds as he said the current state of the economy reaffirms the need for HL’s services.
“Given this extended period of macroeconomic uncertainty, our focus – as always – is on supporting clients with their financial wellbeing and helping them to navigate this turbulence,” Hill said.
At the time of writing, shares in Hargreaves Lansdown are up 0.84 per cent.