Rising interest rates provide an easy cash windfall for Hargreaves Lansdown, but convincing more investors to park their savings with the platform provider might prove harder than is assumed in its punchy medium-term targets.
The savings and investment group is enduring a painful pandemic hangover, one made worse by rapidly rising inflation and diving stock markets. The latest annual rate of new clients joining the platform has slowed to 92,000, compared with 233,000 the year before, and net new funds eased to £5.5 billion, weaker than expected, down from £8.7 billion and considerably below the pre-pandemic level. A £17.6 billion negative impact from market performance reduced the level of assets under administration, which in turn means lower fee revenue.
The rising cost of living and
