Strong inflows drive HUB24, Netwealth NPAT

Platforms are continuing to prove themselves the profit leaders in financial services with both HUB24 and Netwealth reporting robust first-half results on the back of strong inflows resulting in profit significant profit increases.

HUB24 reported a 14% increase in net profit after tax (NPAT) of $30.4 million while Netwealth reported a 28.3% increase in NPAT of $39.3 million.

Netwealth’s board declared a 27% increase in its interim dividend to 14 cents per share, while HUB24 announced a 32% increase in interim dividend to 18.5 cents per share, fully franked.

But, importantly, both platforms acknowledged that their continuing success was dependent in large measure on their continuing reach into the financial advice profession.

Netwealth’s Matt Heine said the company’s 20% increase in total income of $123.3 million was attributable to high levels of recurring revenue and enhancing the firm’s product offering.

“FUA of $78 billion to 31 December 2023 has increased to $81 billion current FUA,” he said. “Our new client base is expanding with 20% of all new FUA net inflows coming from new financial intermediaries since 1 July 2023.”

HUB24’s chief executive, Andrew Alcock said the number of advisers using the platform had increased by 16% during the half to 4,297 with 70 new distribution agreements having been signed.