The Mortgage Advice Bureau’s adviser numbers have “started to grow again” having not improved since last year.
In a trading update, MAB said since 2023, there has been a period of contraction for its number of advisers.
However, this has “turned around” in July 2024 as existing appointed representative firms have “ceased reductions” and new AR firms have joined the network.
The bureau also found that its market share continued to rise, increasing to 8.2 per cent.
Revenue per adviser metrics was also found to have increased again which, according to the MAB, “evidences improving profitability in the business”.
The bureau also detailed that it experienced a growth in its revenues, rising by 5 per cent to £123.5mn in the first six months of the year.
It argued this reflects market share gains and higher productivity as it occurred despite “challenging” market conditions.
The MAB added that, while financial performance continues to be impacted by slower markets, the competitiveness of the franchise is “strengthening” and that profits should “ratchet” when conditions improve.
Additionally, the MAB predicted a “modest pick-up” in the second half of the year, citing several factors which should support an uplift in volumes, income, and profits.
One such factor was UK interest rates which it said should begin to fall, thereby triggering re-financing activity.
Another factor mentioned was greater market stability which the bureau stated should mirror a more “stable political situation” following the recent UK election.
It added that this recovery “should continue into 2025 and beyond” as the proven strengths of its business model “continue to play out”.
As a result of the results, the bureau announced that it would not be changing its forecasts for future periods.
tom.dunstan@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
