HUB24 forecasts record net inflows for FY24

HUB24’s underlying net profit after tax (NPAT) grew 14 per cent in the past six months, while the firm is expecting record net inflows for the full year of $16 billion. 

In its results for the six months to 31 December, it said underlying NPAT was $30.4 million, representing a 14 per cent increase on the first half of FY23.

Total funds under administration (FUA) grew to $91.2 billion, with platform FUA increasing to $72.4 billion ($74.8 billion as at 15 February 2024) and portfolio, administration and reporting services (PARS) FUA of $18.8 billion.

Total revenue was up 14 per cent on the first half of FY23 to $156.7 million, which HUB24 said was driven by strong growth in the platform segment and consistent growth in tech solutions.

The number of advisers using the platform increased 16 per cent compared with the same time last financial year to 4,297, adding it had also signed 70 new distribution agreements.

HUB24 said it delivered record net inflows of $7.2 billion during the first half of the financial year, including the $1.8 billion transition of Insignia Financial to a private label (Rhythm) administered on HUB24.

This represented a 26 per cent increase on the first half of FY2023. HUB24 added that is now the seventh-largest platform and continues to gain market share, which increased to 6.7 per cent from 5.7 per cent.

HUB24 chief executive and managing director Andrew Alcock said he expects net inflows to double to more than $16 billion in the full year.

Speaking on the results webinar, he said: “Our net inflows were $7.2 billion, which was a record, and that’s partly driven by great organic flows but also the one-off large migration of $1.8 billion from an Insignia incumbent provider to HUB24. 

“We are working on a large transition opportunity for Equity Trustees which could be up to $3–4 billion in this half, so when you add that in to organic profile, we could be heading to $15–16 billion in net flows in FY24.

“That’s an amazing outlook, and we are very focused on that, and investing to deliver on that.”

Looking ahead, HUB24 said that it has a “strong pipeline” across both existing and new advisers, and expects to continue to deliver growth in market share.

The company announced a fully franked interim dividend of 18.5 cents per share (up 32 per cent on 1HFY23) to be paid on 16 April 2024.