Funds manager HUB24 [ASX:HUB] has shared a net inflow of $1.9 billion for the March quarter, with funds under administration (FUA) reaching $76.9 billion.
Fellow fintech Plenti Group [ASX:PLT] also posted a 45% rise in quarterly revenue, and funds investor Praemium [ASX:PPS] (a direct competitor of HUB) lifted its FUA by 8% to $43.7 billion.
With all three notable fintechs posting these updates today, it’s worth looking into their respective share price progress of late.
HUB did not appear to move much in the share market by the afternoon following the update, keeping around $27.50 a share. However, looking at the growth in the past 12 months, it gained more than 8% in value.
PLT, a much cheaper stock at 37 cents, rose by 14% in the past month but fell 59% in the past year.
PPS, also a low-cost stock at 73 cents, has managed to rise 18% in the year:
Source: tradingview.com
HUB24 gains $1.9 billion in net inflows
Funds investing service Hub24 has said that it has gained $1.9 billion in net inflows for its latest quarter ended March 31, with the group’s total FUA rising to $76.9 billion.
HUB revealed that its platform funds picked up 16.5% from the same time in 2022 to $59.4 billion, while its portfolio, administration, and reporting inched up minimally by 1% to a total of $17.5 billion.
HUB grew its pipeline of opportunities during the quarter with 27 new distribution agreements signed and the total number of advisers using the platform increasing to 3,748 (up 9.2% from 2022).
HUB24 has entered into an agreement with Equity Trustees to provide custodial platform administration and technology solutions, covering transitions of approximately $4 billion FUA over the next 18 months.
Source: HUB
Plenti posts $42.3 million quarterly revenue
This lending and investment business also provided a trading update for the quarter. Among the group’s highlights was a loan portfolio increase to $1.77 billion, 36% above the previous year and 6% above the prior quarter.
Loan originations were $276 million, with (seasonal) lower originations in January and February, followed by stronger originations of $111 million in March.
Annualised net credit losses came to 77 basis points, and 90-day-plus arrears were 42 basis points at quarter end.
Quarterly revenue of $42.3 million, 48% above 2022, which PLT says shows a pathway for ‘growth, efficiency and profitability.’
Daniel Foggo, Plenti’s CEO, said:
‘With our continued momentum and healthy net interest margins, we enter our new financial year confident of our ability to drive both strong loan portfolio growth and business profitability.’
Source: PLT
Praemium’s year-to-date inflows exceed $1.2 billion
Funding platform Praemium has also gained FUA revenue of $43.7 billion, an increase of 8%, with total net inflows over the financial year-to-date reaching $1.24 billion.
PPS said net platform inflows for the financial year so far were ‘augmented by $1,002 million in positive market movements’, which included positive $581 million and compares to $312 million in negative market movement in FY2022.
Anthony Wamsteker, Praemium’s Chief executive, said:
‘Investor sentiment has remained subdued in the wake of previous quarters of high market volatility. Nevertheless, the March quarter of 2023 financial year has seen both Powerwrap and Praemium’s SMA scheme continue to generate positive net flows.’
Source: PPS
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For The Daily Reckoning
