Net new business growth has shrunk by almost a third at Hargreaves Lansdown, with the investment platform suffering from low investor confidence.
According to its interim results, in the six months to 31 December 2022, HL recorded £1.6bn of net new business, a 30% decrease year-on-year.
Total assets under administration have also fallen compared with the previous year's figure, down 10% from £141.2bn to £127.1bn.
Outgoing CEO Chris Hill said he was "delighted" with the "strong financial performance over the first half of the year".
He added: "Whilst challenging external conditions and low investor confidence impacted asset values and stockbroking volumes in the period, clients have benefitted from our diversified platform and we have progressed across all the strategic priorities that we set out a year ago at our capital markets day."
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Despite this, revenue and profits before tax were boosted at the firm, recording a 20% and 31% increase respectively.
Revenue rose 20% from £291.1m in its H1 2021 results to £350m in this year's figures, however, this rise was only made possible by the rapidly increasing interest rates.
Across all but one of its arms, revenues fell, with platform fees, shares, advisory fees and management fees from its own products all taking a hit compared with the previous year.
Revenues from platform fees shrunk 11% to £117.9m, stockbroking commission and equity holding charges fell 31% to £70.2m, management fees from HL funds dropped 14% to £27m and revenues from ‘other', which includes advisory fees, revenue from active savings and ancillary services, nudged 0.7% lower to £13.3m
However, the 1300% rise in the Bank of England base rate from 31 December 2021 to 31 December 2022 rescued the investment platform's revenues, with net interest earned on cash skyrocketing 976% to £121.6m.
With the relevant cash figure stripped from each year's revenue figures, the platform saw a decrease of 18% in revenues year-on-year.
Underlying costs also rose at the firm, up 15%, reflecting inflation, annualisation of headcount growth and an increased technology spend.
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Labour costs rose 21% year-on-year, with technology costs up 54%, while support costs rose 8%, although overall dealing costs fell £5.7m thanks to a renegotiation of third party costs and a decrease in dealing volumes.
Profit before tax was up 31% to £197.6m, with diluted earnings per share rising 29% to 33.1 pence and the interim dividend per share increasing 3.6% to 12.7 pence.
CEO Hill still found bright spots in the results and said: "The progress we have made over this period is the direct result of the hard work of each of my colleagues and I would like to thank them for their ongoing efforts."
