Hargreaves Lansdown reports higher profits as rising rates gives its savings platform a boost

Hargreaves Lansdown has reported a 50 per cent rise in its profits this year, as rising interest rates pushed customers to its savings offering.

The group said its profit before tax had grown 50 per cent to 402.7million, while revenue increased 26 per cent to 735.1million in the 12 months to 30 June.

Hargreaves Lansdown said annual revenue growth reflected an improved net interest margin as interest rates rose and more customers held cash in both their investment and savings account.

The average cash balance represented 10.8 per cent of total average assets under administration, an increase from 10 per cent the previous year.

The group said this had 'more than offset the impact of lower average asset values and lower stockbroking volumes resulting from negative market movements and low levels of investor confidence.'

Shares in Hargreaves Lansdownare down 0.55 per cent to 760.8p.