Shares of Hargreaves Lansdown PLC (LSE:HL.) rose 3.4% in early trade on Thursday following a solid first-quarter update that appeared to signal a return of investor confidence.
The retail investment platform reported £1.6bn in net new business, a 14% increase compared to the same period last year, driving revenues up by 28% to £188.1mln.
Assets under administration rose by 4% to £132bn, reflecting £3.3bn in positive market movement and new business growth.
CEO Chris Hill stated that Hargreaves Lansdown is well positioned for growth as confidence returns, despite ongoing macroeconomic uncertainty.
Share dealing volumes increased by nearly a quarter compared to the previous quarter but remained 20% lower than last year.
The first three months of 2022 saw a surge in trading activity before investor confidence was impacted by concerns over the conflict in Ukraine and cost-of-living issues.
"Net new business ex-Active Savings is considerably stronger than the market expected. The company puts this down to an increasing client focus on using ISA and SIPP allowances," said Shore Capital in a note repeating the broker's 'buy' recommendation.
At 8.20 am, the shares were changing hands for 819p, up 27.2p.