Investment platform provider Hub24 has reported healthy profit growth for the first half of the 2018 financial year, with funds under administration (FUA) increasing by 66 per cent compared to the previous corresponding period.
Hub24’s FUA grew from $4.1 billion to $6.9 billion, with the current figure sitting at $7.2 billion. Half-yearly and annual FUA increased by a record $1.4 billion and $2.75 billion respectively.
The company also reported a 73 per cent jump in its underlying net profit after tax (NPAT) of $2.1 million.
In its half-year results announcement to the Australian Securities Exchange, Hub24 said underlying NPAT increased by 75 per cent to $2.1 million for the six months to 31 December 2017.
Its underlying earnings before interest, tax, depreciation and amortisation stood at $4.9 million for the first half of 2017/18, a 185 per cent increase on the $1.7 million in the first half of the 2017 financial year.
Platform revenue grew 59 per cent, while platform expenses increased by 39 per cent compared to the prior corresponding period.
Hub24 increased its investment in technology development during the first half to take advantage of the opportunities presented by the acquisition of Agility and trends in the financial services industry.
The movement of advisers away from institutionally aligned licensees towards their own Australian financial services licences, the adoption of managed accounts, and the convergence of stockbroking and financial advice, along with Hub24’s increasing market presence, presented the company with growth opportunities, it said.
Hub24 managing director Andrew Alcock said: “We will continue to invest to position the business for expanding market opportunities and to leverage the changing market dynamics to create superior client and adviser solutions.”
Wholly owned Hub24 subsidiary Paragem recruited two new advice practices, increasing funds under advice to about $4.4 billion.
Last year, Alcock told selfmanagedsuper Hub24 would continue to expand its product range for advisers to address SMSF portfolio needs.