Wealth tech platform Allfunds Group reported today (29 February) a 7% rise in assets under administration (AUA)) year-on-year to €1,384bn (FY 22: €1,296bn) compared to a 4% increase for the European cross-border industry over the same period.
The preliminary financial results for the year ended 31 December 2023 showed continued growth in client migrations of €60bn, of which €11.2bn derived from the acquisition of Iccrea Banca´s local paying agent business.
The platform service business increased AUA by 8% or €77bn supported by positive market performance of €73bn or 8% since December 2022, platform service net flows (including Iccrea) of €3.4bn or 0.4% since December 2022, outflows during the period concentrated on a limited number of retail banks in Central Europe, Italy and Spain; with a significant deceleration of outflows in Q423, and growth in the Dealing & Execution business, which increased AUA by 3% or €11bn supported by positive market performance.
Allfunds further reported record net revenues, with total net revenue of €546m, representing a 10% increase year-on-year, platform revenues, including net treasury income (NTI), of €487m and year-on-year revenue margin growth to 3.6bps (FY 22: 3.4bps).
These revenues, it said were driven the resilience of Allfunds’ operating model, including its banking license, which resulted in sustainable treasury income of €76m , offsetting decline in transaction revenues which remained subdued.
Treasury income had acted as a natural hedge for rates movements and become a key component of revenue contribution and stability of platform revenue margin, excluding NTI, from 1H 2023, in line with expectations
In addition, subscription revenues increased by 47% to €59m which it said were "poised for significant organic growth following the integration of the recent acquisition of MainStreet Partners and full integration of our product suite offering into the WealthTech platform".
Adjusted EBITDA was €359m, with a 3% increase year-on-year and implying an adjusted EBITDA margin of 66%, in line with expectations.
Allfunds also highlighted its new client relationships globally, with strong geographical and distributor diversification: 81 new fund houses and 53 new distributors onboarded over the period.
And its market share has continued to gain market share in the European cross-border segment to 26.0%, representing more than 10 years of annual market share gains.
Juan Alcaraz, chief executive officer and founder, said: “Our excellent performance in 2023 underlines the strength of our strategy: we reached historical record revenues and have improved our profitability with Adj. EBITDA margin at 66%, and a record reported EBITDA of €319m, despite a challenging environment.
"The resilience of our business model is closely interconnected with our pursuit of quality earnings that are diversified by origin, client, geography and asset class. We continue to invest in new initiatives and services to support our truly unique proposition.
"This has been further enhanced by the completion of two complementary acquisitions of high-quality businesses over the period. Activity has underpinned our strong capital generation and has enabled us to accelerate distributions to our shareholders.
"We are therefore well positioned to speed up this progress and continue capitalising on market growth trends to consolidate our leadership position in the global investments industry in 2024. I am proud of our team, who delivered these strong results while continuing to progress on our mid-term goals.”
Allfunds also highlighted its new client relationships globally, with strong geographical and distributor diversification: 81 new fund houses and 53 new distributors onboarded over the period.
Its market share has continued to gain market share in the European cross-border segment to 26.0%, representing more than 10 years of annual market share gains.
