The Hub24 Ltd (ASX: HUB) share price is in focus after the ASX fintech share revealed further FUA growth in the FY23 fourth quarter.
The company runs the Hub24 platform, the Xplore Wealth platform, SMSF, company and trust accounting software provider Class, and it also runs Myprosperity.
Hub24 quarterly update
The fintech company said that its total funds under administration (FUA) had reached $80.3 billion, an increase of $3.4 billion.
Platform FUA rose 26.2% year over year to $62.7 billion, while portfolio, administration and reporting services (PARS) FUA went up 11.1% to $17.6 billion.
Hub24 revealed that platform net inflows for the quarter were $2.1 billion, down 14.7% year on year. But, platform FUA increased by 5.5% for the quarter.
The company boasted that it was ranked first place for quarterly and annual net inflows.
Hub24’s market share has increased to 6.o5%, up from 5.1% as at March 2022. It’s ranked seventh place. This is good news for the long-term trajectory of the Hub24 share price.
Growth prospects
Hub24 said its pipeline “remains strong” across all customer segments, with the total number of advisers using the platform increasing by 15% year on year.
It also said that 28 new distribution agreements were signed, including some “large boutique advice practice opportunities, where Hub24’s innovative product solutions and customer service proposition are resonating with licensees and advisers.”
The ASX fintech share said the previously-announced transition with EQT Holdings Ltd (ASX: EQT) of approximately $4 billion of FUA over the next 18 months has progressed with agreement of key terms now completed.
Hub24 said it would provide custodial platform administration and technology solutions for EQT and AET trustee services clients, with the first migrations expected for the first half of FY24, meaning within the next five and a half months.
Final thoughts on the Hub24 share price
The business is generating good year on year growth, but its valuation certainly reflects that. I think its market share and profit can continue to rise, but I wouldn’t expect it to deliver significantly-stronger investment returns with the high price/earnings (p/e) ratio.
