HUB24 announces FUA jump, platform market share increase

HUB24 has reported that 4,011 advisers were using its platform at the end of June, up 15 per cent on the prior year.

In a statement to the ASX on Tuesday, HUB24 revealed its underlying net profit after tax (NPAT) climbed 64 per cent in the year ended 30 June to $58.8 million, while its underlying group EBITDA rose 45 per cent to $102.4 million.

Underlying platform EBITDA added 37 per cent over the year to $85.1 million, while total funds under administration (FUA) surged 23 per cent to $80.3 billion. The latter comprised platform FUA of $62.7 billion, up 26 per cent, and portfolio, administration and reporting services (PARS) FUA of $17.6 billion, up 11.1 per cent. Platform net inflows, however, suffered a 17 per cent drop to $9.7 billion.

Platform FUA increased to $64.5 billion as at 17 August 2023, HUB24 added.

“The HUB24 platform has achieved market-leading net inflows, increased market share, and continues to be recognised by both advisers and the industry as Australia’s best platform,” said Andrew Alcock, HUB24’s managing director.

During FY23, HUB24 said it “progressed the delivery of strategic initiatives” including the acquisition of myprosperity, which underpins its plans to “further progress” its “platform of the future strategy”.

“The acquisition of myprosperity will enhance our group capabilities, further consolidate our market-leadership position and provide opportunities to continue to deliver innovative products and solutions that create value, efficiency, and choice for financial professionals and their clients,” said Mr Alcock.

Moreover, HUB24 disclosed that in FY23, it increased its platform market share to 6.1 per cent, up from 5.1 per cent.

Moving forward, HUB24 said it “remains focused” on maintaining its “market leadership” while “creating the platform of tomorrow”.

Based on the expectation of ongoing strong net inflows to the platform, HUB24 said it is targeting a revised platform FUA range of $92–100 billion by FY25.

ASX-listed platform business HUB24 announced in May that it had entered into an agreement to acquire myprosperity.

At the time, HUB24 said it expects the acquisition to deliver long-term value by accelerating its “platform of the future strategy”, supporting its current growth trajectory and strengthening its “competitive advantage” to capture market share and create new growth opportunities.

Mr Alcock said: “We’re excited to be announcing the acquisition of myprosperity, who are a leading provider of client portal technology for advisers and accountants, and welcome Peter McCarthy and his talented team to HUB24”.

“This acquisition will consolidate our market-leadership position and accelerate the delivery of our platform of the future strategy, strengthening our competitive advantage to capture further market share and new growth opportunities.”

Myprosperity is a provider of client portals for financial advisers and accountants, delivering a holistic view of household wealth, providing secure digital engagement, and facilitating collaboration between clients and financial professionals.