U.K. Wealth Managers to Profit Most as Rates Rise, Liberum SaysMark Bentley
Wealth managers including Hargreaves Lansdown Plc have the most profit to gain among U.K. financial-services companies should interest rates rise, according to investment bank Liberum Capital Ltd.
A one-percentage-point increase in rates would boost pretax profit at Hargreaves Lansdown by 10.8 percent, London-based analyst Justin Bates said in a report published on Thursday. Profit at Rathbone Brothers Plc would rise 8.3 percent and Paragon Group of Companies Plc, which provides lending services, would see profit boosted 8 percent.
“Wealth managers are likely to be the major beneficiaries, as they will earn increasing amounts of interest income on client funds under management held in cash,” Bates said.