Sector Movers: Financial Services led higher by Hargreaves Lansdown

6th Feb 2013 16:20

The financial service sector was led higher by Hargreaves Lansdown on Wednesday after the company posted record revenues and profits for the second half of 2012, driven by a boost in client numbers. The FTSE 100 group said revenue was up 24% to £140.3m, while profit before tax rose 30% to £93.7m. The group's total net business inflows for the six months jumped 42% to £1.65bn and total assets under administration increased by 16% to £30.4bn. The total interim dividend increased by 24% to 6.3p per share, compared to 5.1p for the same period a year earlier. Chief Executive Officer Ian Gorham said Hargreaves flew in the face of a global financial crisis with an expanding customer base, particularly in its 'investment supermarket' service Vantage which grew by 21,000 clients to 446,000 over the period. "Despite continued economic uncertainty in the UK, Hargreaves Lansdown has had the scale, financial strength and market presence to continue to improve its position. Clients appreciate our excellent value, service and informed comment," he said. Elsewhere in the sector, RBS was slapped with a £390m ($610m) LIBOR-related fine from both US and UK authorities after a report found 'serious failures in the controls and risk management systems RBS had in place'. The group agreed to pay penalties of £87.5m, $325m, and $150m to the Financial Services Authority (FSA), Commodity Futures Trading Commission (CFTC) and Department of Justice (DOJ), respectively. The company said it has entered into a deferred prosecution agreement in relation to one count of wire fraud relating to Swiss Franc LIBOR and one count for an antitrust violation relating to Yen LIBOR. RBS Securities Japan has also agreed to enter a plea of guilty to one count of wire fraud relating to Yen LIBOR. Top performing sectors so far todayFinancial Services 6,277.97 +2.65%Personal Goods 22,548.96 +2.39%Industrial Transportation 2,488.24 +1.17%Fixed Line Telecommunications 3,173.96 +1.07%Mining 20,389.77 +1.00%Bottom performing sectors so far todayFood Producers & Processors 6,933.97 -1.14%Mobile Telecommunications 3,989.76 -0.44%Oil & Gas Producers 8,100.44 -0.41%Gas, Water & Multiutilities 5,339.97 -0.31%Beverages 14,047.50 -0.30%NR