AJ Bell £50bn AUA driven by platform business

AJ Bell £50bn AUA driven by platform business

Online investment and stockbroker platform AJ Bell PLC (LON: AJB) has seen growth in its usership and Assets Under Administration during its third quarter, which it said largely owed to success in its platform business.

The Company said that customer numbers were up 5% during the quarter, up 9,843 to 210,765 during Q3.

Platform AUA was lifted by net inflows of £1.0 billion, £0.2 billion of DB pension transfers and favourable market movements of £1.6 billion. Overall, platform AUA rose 7% during Q3, to £43.4 billion.

AJ Bell noted that AUA increased 13% across all divisions over the year, and AUA broke the £50 billion mark.

AJ Bell statement

In a summary of results for the Company as a whole, the Comany said,

“Total customer numbers increased 5% in the quarter to 224,644, with total assets under administration (“AUA”) breaking through the £50 billion mark to stand at £50.7 billion, an increase of 6% over the quarter and 13% over the past year. In comparison, the FTSE All-Share index increased by 2% over the quarter and fell by 3.5% over the year.”

Andy Bell, Chief Executive Officer of the Company, added the following comments,

“Trading in the third quarter of our financial year remained strong across our advised and direct to consumer platform.  We continue to focus on the needs of advisers and customers, making it as easy as possible for them to invest and this has resulted in assets under administration breaking through the £50 billion mark. People need to save more via their pensions and ISAs for the long term and our platform and investment solutions help them do that easily and cost effectively.”

Investor notes

Since the update, the Company’s shares have rallied 3.43% or 14.70p to 442.90p a share 25/07/19 11:35 BST. Numis analysts upgraded their stance on AJ Bell stock from ‘Reduce’ to ‘Hold’.

Elsewhere in asset and investment management, there have been updates from; Intermediate Capital Group plc (LON: ICP), Highcroft Investments plc (LON: HCFT), City of London Investment Group PLC (LON: CLIG) and Miton Group PLC (LON: MGR).