Andrew Alcock (left) and Matt Heine

The competition between HUB24 and Netwealth has never been more intense, with both platforms posting a similar market share and jointly dominating inflows.

Both providers reported 1H24 results to the ASX on Tuesday morning, with HUB24 revealing a 39 per cent increase in statutory net profit after tax (NPAT) of $21.5 million in 1H24, while Netwealth NPAT grew 27.2 per cent to 39.3 million.

At close of business Tuesday afternoon, Netwealth’s share price increased 5.62 per cent to $18.60, while HUB24 increased 4.88 per cent to $39.36.

Netwealth funds under administration (FUA) stood at $78 billion at the end of 2023, growing 24.9 per cent over the year, and as of 16 February had reached $80.8 billion.

HUB24 total FUA grew to $91.2 billion, with platform FUA increasing to 72.4 billion by the end of 1H24 and to $74.8 billion as of 15 February.

Data from Plan for Life dated 30 September 2023 and included in Netwealth’s investor presentation, showed both Netwealth (7.4 per cent) and HUB24 (6.7 per cent) having grown their market share, while the legacy platforms lost ground.

However, the largest platform in terms of FUA, Insignia Financial, held $199 billion which represented 20.4 per cent of the market and was still roughly three times the size of HUB24 or Netwealth.

Netwealth managing director Matt Heine was unavailable for comment, but HUB24 chief executive Andrew Alcock told Professional Planner the competition was “great”.

“It drives us to keep innovating and disrupting,” Alcock said.

Peter Worn, joint managing director of independent advice tech consultancy Finura Group, said the continued growth in market share and net inflows of both companies is “really impressive”.

“[And] also corresponding to the underlying profitability of both groups,” Worn said.

“Not only are they continuing to grow their market position, but they’re also being able to monetise that well.”

Worn said it has been predicted that both firms will be hit with price and margin pressure, but that is yet to happen.

“Obviously some investors may be asking well how long this can keep continuing, they’re both trading on quite high P/E multiples [price to earnings] so there will be continued pressure on these businesses to keep growing at their current rates,” Worn said.