HUB24 gaining market share to support earnings in volatile markets
HUB24 (HUB) +3.59%: bucked early weakness and traded strongly off the lows to fare better than the index after a reasonable 3rd quarter update. While not providing financials, the update showed a 5% hit to FUA against the backdrop of a 24% hit to the ASX in the same period as falling investment values were offset by net inflows. Hub seems to be getting the run on its peers in a tightly contested space, managing to attract a good portion of financial advisers moving to independent set ups.
Market share was up 0.5% quarter on quarter which likely see earnings grow despite the hit to financial markets. Interest rate cuts though continue to detract from margins with the RBA effectively moving to 0% taking HUB’s margin over the cash balances to near nothing. Still though, Hub is winning the fight at the moment, and seems reasonably priced vs peers. One to keep an eye on.
HUB24 (HUB) Chart
