Financial
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HL’s Capital Management Framework and Dividend

In line with guidance, the Board has declared an increased interim dividend of 13.2 pence per share (H1 2023: 12.70 pence per share). The interim dividend was paid on 28 March 2024 to all shareholders on the register at 1 March 2024.

The Board has reviewed and agreed the capital management framework for HL, taking into account the appropriate level of capital to be held above the Regulatory Requirement, the level of organic investment required to support the business plans for growth and efficiency, and the importance of delivering sustainable and attractive shareholder returns.

The framework comprises four elements:

1. Maintaining a Robust Balance Sheet - Our priority continues to be maintaining robust financial health; holding a management buffer above the regulatory minimum to support the businesses’ regulatory capital and liquidity requirements. The FCA’s Investment Firm Prudential Regime (IFPR) applies to the Group and HL completes this assessment through the Group Internal Capital Adequacy and Risk Assessment (ICARA) processes. The Regulatory Requirement is driven by factors set out in the ICARA framework with the main drivers of material movement being the level of AUA managed by HL and our internal assessment of the level of risk presented within the business.
2. Investing for Growth and Efficiency - We will deploy capital for investment in the business to maintain and enhance our platform capabilities through investment in people capability, technology and innovation. Where appropriate, the Board may choose to selectively deploy capital for inorganic growth to accelerate delivery of the strategy.
3. Ordinary Dividend Policy - Recognising the importance of shareholder returns, cash distributions to shareholders will be primarily driven through our progressive ordinary dividend. We will continue to give specific dividend guidance on an annual basis whilst we are investing in the business through the Strategic Spend programme through to FY26.
4. Other Capital Returns - Where the Board assesses there to be surplus capital available for distribution after the above considerations have been taken into account, this will be returned to shareholders as part of our full year annual cycle over time. The specific mechanism for a return of surplus capital will be determined should an additional return be deemed appropriate.