(Sharecast News) - Financial services firm AJ Bell said it expected to beat full year profit estimates as it reported a 12% rise in assets under administration (AUA) during the third quarter and announced a move into the retail cash savings market.
The company on Thursday said it expected profits in the year to September 30 to be at least £2.5m above current market consensus of £43.4m.
AUM rose to £54.3bn. Underlying net inflows, representing organic growth in the quarter, increased by 30% over the prior year to £1.3bn.
Trades in the third quarter to end-June 2020 doubled year-on-year, although these had now eased from the peak of the coronavirus crisis. The company said it expected dealing activity to normalise this quarter and maintained full year guidance.
AJ Bell said it would start offering customers the option to apply for multiple savings accounts with no paperwork, and manage their cash savings via one online account.
Chief executive Andy Bell said: "With interest rates so low, it is increasingly important that people regularly check the rates they are earning on their cash savings and consider switching accounts if they want to ensure they get a better return, but most people don't have the time or inclination to do that."
"Our new AJ Bell Cash savings hub will enable customers to manage their cash savings more effectively without having to go through lengthy, paper-based application processes each time they open a new account."
AJ Bell (AJB)21 Jun 2024 15:15
