Hargreaves posts record inflows but warns of short-term headwinds

Hargreaves Lansdown reported a record £3bn increase in assets under administration in the three months to the end of September, but warned of headwinds to its revenues in the short-term.

The discount broker said it had seen assets under administration rise by £2.9bn to £39.3bn over the reporting period, while net new business flows were strong at £1.26bn, a 129% increase on the previous year. However, the group said low rates on deposits remain a short-term headwind for the business: “On a cautionary note, the reduction of interest deposit rates continue to impact interest margin revenue and thus act as a short term, but material, headwind for revenue and profit.” In the second quarter of its financial year, the firm will unveil a new pricing structure for clients ho...