HUB24 surpasses $100bn FUA

In its full-year results announcement on the ASX on Tuesday morning, HUB24 announced its total funds under administration (FUA) grew to $104.7 billion as at 30 June 2024, representing a 30 per cent increase on the 2022–23 financial year.

Breaking the figure down, platform FUA increased 35 per cent to $84.4 billion, with HUB24 noting that it has since reached $87.1 billion as at 14 August 2024, while portfolio, administration and reporting services (PARS) FUA grew to $20.3 billion, up 15 per cent on FY2022–23.

During FY23–24, HUB24 delivered record net inflows of $15.8 billion, which included large migrations (up 62 per cent on FY22–23). The platform also boasted the “largest quarterly and annual organic market share gains of all platform providers”, increasing market share to 7.3 per cent (up from 6.1 per cent in FY22–23), and is ranked in seventh place overall.

In FY23–24, the number of active advisers using the platform increased to 4,525 (up 13 per cent on FY22–23) on the back of 141 new distribution agreements.

“Our strong financial performance during FY24 has delivered underlying group EBITDA of $118 million – up 15 per cent, underlying NPAT of $67.8 million – up 15 per cent, and a fully franked final dividend of 19.5 cps resulting in total FY24 dividends of 38 cps, up 17 per cent,” said Andrew Alcock, CEO and managing director of HUB24.

The underlying group EBITDA of $118.0 million was largely driven by a 21 per cent increase in underlying platform EBITDA to $103.0 million, while its underlying tech solutions EBITDA was up just 1 per cent on FY22–23 to $22.1 million.

The group’s statutory NPAT was also up 24 per cent to $47.2 million.

Total revenue for the financial year grew 17 per cent to $327.3 million, which HUB24 said was driven by strong growth in the platform segment and consistent growth in tech solutions.

Operating expenses of $209.3 million were also up 18 per cent on the previous financial year, with the firm attributing this to lower employee vacancy rates and the myprosperity acquisition.

“We’re proud to have consolidated our position as Australia’s best platform and are committed to empowering better financial futures for more Australians,” Alcock said.

“As a result of our focus on delivering innovative products and solutions and customer service excellence, we’ve achieved industry-leading and record platform net inflows and increased market share.

“As we move into FY25, we’re well positioned to extend our market leadership in our core propositions, whilst maximising our unique capabilities to leverage opportunities to deliver strong growth and value for our customers and shareholders.”

Based on its expectations for ongoing strong net inflows, HUB24 projected a platform FUA range of $115–123 billion by FY25–26 (excluding PARS FUA).