HUB24 enters FY25 with $9.5bn in net inflows
HUB24 has seen record net inflows of $9.5 billion for the first half of FY25, driven by new advisers joining the platform and favourable market conditions.
In its results for the six months to 31 December 2024, the firm’s total funds under administration (FUA) rose 33 per cent from $91.2 billion in the first half of FY24 to $120.9 billion.
Platform FUA enjoyed a 36 per cent rise to $98.9 billion from $72.4 billion, while portfolio, administration and reporting services (PARS) FUA increased 17 per cent to $22 billion from $18.8 billion.
HUB24’s total FUA growth was underpinned by record half-year platform net inflows of $9.5 billion, up 31 per cent, from $7.2 billion in the prior corresponding period. This was thanks to large migrations of $1.5 billion and positive market movements of $5 billion.
Speaking on the results webinar, HUB24 managing director and chief executive Andrew Alcock said: “We are getting record flows for ourselves. A great result for the first half, which I think is testament to underlying market conditions which are very favourable for our industry and very favourable for investors and advisers.”
The firm also highlighted buoyant financial markets, higher net inflows across the wider platform industry, and continued disruption that is supportive of advisers switching platforms.
“Our platform market share continued to increase driven by growth from both new and existing licensees and advisers, while we reported high rates of growth in new advisers using the platform which will support future growth.”
The number of advisers using the platform grew 14 per cent to 4,886, and 84 new distribution agreements were signed.
Alcock added: “[We saw] 361 net additions in 1HFY25 – the average for the past three years was 277. So there’s been an increase in advisers signing up to use the platform this half, which is an indicator of future flows.”
Given strong net inflows and market movements during 1HFY25, alongside a pipeline of opportunities across all customer segments, HUB24 upgraded its platform FUA target to a range of $123–$135 billion for FY26, from a previous range of $115–$123 billion.
The target includes net inflows of $11–$15 billion for the next financial year, excluding large migrations.
Moreover, the company’s net profit after tax (NPAT) grew 54 per cent from $21.5 million to $33.2 million. Total group operating revenue saw a 25 per cent rise from $156.7 million to $195.2 million, underpinned by strong growth in the platform segment and consistent growth in technology solutions.
HUB24 also announced a fully franked interim dividend of 24 cents per share, up 30 per cent on the prior corresponding period.
The CEO concluded: “With significant opportunities from existing and new customers across the group, we expect strong growth and increasing profitability. By leveraging our unique group capabilities, we will continue to drive industry transformation while enhancing value for our customers and shareholders.”
AUTHOR
Jasmine Siljic
Recommended for you
As the industry navigates the fallout from recent product failures, two major AFSLs have detailed their APL selection process and relationship with research houses, warning a selection error could “destroy” a licensee.
The impending retirement of financial advisers in their 50s could see the profession face significant succession challenges over the coming decade and younger advisers may not be the answer.
With a third of AFSLs being solo advisers, how can they navigate key person risk and ensure they are still attractive propositions for buyers when it comes to their succession planning?
A quarter of advisers who commenced on the FAR within the last two years have already switched licensees or practices, adding validity to practice owners’ professional year (PY) concerns.
