The HUB24 Ltd (ASX: HUB) share price is pushing higher on Tuesday following the release of its second quarter and half year update.
In morning trade the investment platform provider’s shares are up 2% to $23.46.
This latest gain means the HUB24 share price is now up 97% since this time last year.
How is HUB24 performing?
HUB24’s strong form continued during the three months ended 31 December.
Its Custodial Platform Funds Under Administration (FUA) reached $22 billion at the end of the period, which was up 38.7% on the prior corresponding period. Total FUA came to $31 billion, including the $9.3 billion of non-custodial FUA from the Ord Minnett PARS acquisition.
This strong growth was driven by record platform quarterly net inflows of $1.7 billion, an increase of 36.7% on the net inflows it recorded in the same period a year earlier. This was also $360 million higher than its first quarter net inflows.
Pleasingly, the future looks positive, with HUB24’s new business pipeline continuing to grow following the signing of 24 new licensee agreements during the December quarter. These include agreements with both large boutique licensees and self-licensed practices.
Additionally, the company has recently entered into a binding agreement with IOOF Holdings Limited (ASX: IFL) to develop a range of solutions. This includes an investment and superannuation wrap platform utilising HUB24’s custody, administration and technology capabilities, and a suite of managed portfolios.
Commenting on its outlook, the company stated: “As well as continued focus on growing the current platform business and supporting our customers, the company is leveraging opportunities for further growth and diversifying into non-custody administration in line with our HUBconnect strategy. With the completion of the acquisition of the Ord Minnett PARS business, non-custodial FUA of $9.3 billion for this quarter will now be included in the company reporting.”
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More reading
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- Why the Hub24 (ASX:HUB) share price could go higher
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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