Rathbones Group plc (“Rathbones” or the “Group”) announces results for the six months ended 30 June 2025
Paul Stockton, Group Chief Executive Officer of Rathbones, said:
“The first half of 2025 marked a pivotal phase for Rathbones, as we successfully completed the planned client and asset migration of Investec Wealth & Investment (IW&I). This milestone increased run-rate synergies to £47.2 million as at 30 June 2025 and set the stage for the remaining synergies to be delivered in the second half of the year as we continue to realise further benefits of operating as a single, larger business. Our ability to combine personalised financial advice, investment, and wealth management services with the scale and resilience of a larger Group is proving ever more relevant as increasing numbers of people seek trusted guidance in a more complex world.
“These results mark a turning point since the combination and enable the business to shift its focus from migration to the future opportunity ahead. Rathbones enters the second half of 2025 in a position of financial strength. We maintain our progressive dividend policy, and announce today our intention to return surplus capital to shareholders through our first ever share buyback of up to £50 million. As I prepare to hand over to a new leadership team, the business is well placed to drive organic growth and deliver long-term value following the combination with IW&I.”
|
Unaudited Six months to 30 June 2025 £m (unless stated) |
Unaudited Six months to |
Audited Year to 31 December 2024 £m (unless stated) |
|
|---|---|---|---|
| Operating income |
449.1 |
447.4 |
895.9 |
| Underlying operating expenses1 |
(341.4) |
(335.3) |
(668.3) |
| Underlying profit before tax1 |
107.7 |
112.1 |
227.6 |
| Underlying operating margin1 |
24.0% |
25.1% |
25.4% |
| Profit before tax |
62.3 |
65.3 |
99.6 |
| Underlying earnings per share1 |
75.6p |
80.4p |
161.6p |
| Basic earnings per share |
42.6p |
43.9p |
63.0p |
| Dividend per share |
31.0p |
30.0p |
93.0p |
|
1. This measure is considered an alternative performance measure (APM). Please refer to Alternative Performance Measures section of the 2025 Interim Report for more detail on APMs
|
|||
Financial highlights:
- FUMA totalled £109.0 billion at 30 June 2025 (Q1 2025: £104.1 billion, FY 2024: £109.2 billion) comprising:
- £93.2 billion in the Wealth Management segment (£99.4 billion prior to the elimination of Wealth Management FUMA invested in the Asset Management segment of £6.2 billion).
- £15.8 billion in the Asset Management segment.
- Net outflows for the first half of 2025 were £1.0 billion (30 June 2024: £0.6 billion), reflecting the peak impact of client migration activity during the period. Encouragingly, flows improved as the half progressed, with Q2 net outflows reducing significantly to £0.2 billion (Q1: net outflows of £0.8 billion). The Wealth Management segment was broadly neutral in Q2 (Q1: net outflows of £0.5 billion).
- Despite a slight year-on-year decline in underlying profit before tax to £107.7 million (30 June 2024: £112.1 million) and an underlying operating margin of 24.0% (30 June 2024: 25.1%), largely reflecting market volatility at the end of the first quarter, we continue to expect full-year 2025 results to be in line with market forecasts, supported by a stronger starting FUMA position in the second half of 2025 and increasing synergy benefits. Most organisational design changes were completed by the end of the first half of the year, with further margin improvement expected in the second half of the year as integration progresses and the IW&I platform is decommissioned.
- Statutory profit before tax was £62.3 million (30 June 2024: £65.3 million), after recognising amortisation of client relationship intangible assets of £22.2 million (30 June 2024: £22.0 million) and integration-related costs of £23.2 million (30 June 2024: £24.8 million). We continue to expect that acquisition and integration costs will decline substantially in 2026, supporting margin expansion and future growth in basic earnings per share.
Operational highlights:
- Successful completion of the planned migration of IW&I client data and assets at the end of the second quarter marked a major milestone in the integration, completing a highly complex programme of planning, execution and risk management. Only a small number of accounts remain on the IW&I platform – primarily those undergoing probate or already in the process of exiting the service. With this phase delivered, we are well positioned to be able to deliver planned synergies in the second half.
- We have begun expanding our services with the announcement last week of our entry into the fast-growing Model Portfolio Service (MPS) market – the first in a series of new investment solutions. Further launches are planned across our private client, intermediary, charity, and asset management channels, reflecting the broader opportunity enabled by our combination with IW&I to grow, innovate, and better meet the evolving needs of clients and advisers.
Capital, proposed share buyback and dividend:
Rathbones enters the second half of 2025 in a position of financial strength and following a new capital allocation framework, and underpinned by a robust balance sheet, we are taking measured steps to return surplus capital to shareholders. The Board has approved an on-market ordinary share buyback programme of up to £50 million. This buyback remains subject to regulatory approval, and is expected to commence thereafter.
Alongside the buyback, we are increasing our interim dividend by 3.3% to 31.0p, reinforcing our progressive approach to shareholder distributions. Together, these actions mark a new phase for Rathbones, as the benefits of integration begin to translate into enhanced capital generation and long-term value creation.
Interim results presentation:
A presentation detailing Rathbones’ 2025 interim results is available on the investor relations website under the tab ‘Results Presentations’ (https://www.rathbones.com/investor-relations/results-and-presentations).
A presentation to analysts and investors will take place this morning at 10:00am at our offices at 30 Gresham Street, London, EC2V 7QN. Participants who wish to join the presentation virtually can do so by either joining the video webcast (https://www.investis-live.com/rathbones-group-plc/6835c93b3d219d0015e93fc8/hrtyhe) or by dialling in using the conference call details below:
United Kingdom (Local): +44 20 3936 2999
United Kingdom (Toll-Free): +44 808 189 0158
Participant access code: 800562
A Q&A session will follow the presentation. Participants will be able to ask their questions either via the webcast by typing them in or via the conference call line.
A recording of the presentation will be available later today on our website at: www.rathbones.com/investor-relations/results-and-presentations
Funds under management and administration
(i) Segment FUMA
| 6 months ended 30 June 2025 |
Wealth Management (£m) |
Asset Management (£m) |
Intra-group holdings (£m) |
Group FUMA (£m) |
|---|---|---|---|---|
| Opening FUMA |
99,309 |
15,751 |
(5,896) |
109,164 |
| Gross Inflows |
4,329 |
1,637 |
(734) |
5,232 |
| Gross Outflows |
(4,798) |
(2,000) |
557 |
(6,241) |
| Net Flows |
(469) |
(363) |
(177) |
(1,009) |
| Market & Investment Performance |
791 |
418 |
(128) |
1,081 |
| IW&I Migrated Assets2 |
(263) |
– |
– |
(263) |
| Closing FUMA |
99,368 |
15,806 |
(6,201) |
108,973 |
| Q2 ended 30 June 2025 |
Wealth Management (£m) |
Asset Management (£m) |
Intra-group holdings (£m) |
Group FUMA (£m) |
|---|---|---|---|---|
| Opening FUMA |
94,487 |
15,390 |
(5,825) |
104,052 |
| Gross Inflows |
2,077 |
810 |
(378) |
2,509 |
| Gross Outflows |
(2,079) |
(949) |
293 |
(2,735) |
| Net Flows |
(2) |
(139) |
(85) |
(226) |
| Market & Investment Performance |
5,146 |
555 |
(291) |
5,410 |
| IW&I Migrated Assets2 |
(263) |
– |
– |
(263) |
| Closing FUMA |
99,368 |
15,806 |
(6,201) |
108,973 |
(ii) Breakdown of FUMA and flows by service level
| 6 months ended 30 June 2025 |
Opening FUMA (£m) |
Gross Inflows (£m) |
Gross Outflows (£m) |
Net Flows (£m) |
Transfers1 (£m) |
IW&I Migrated Assets2 (£m) |
Market & Investment Performance (£m) |
Closing FUMA (£m) |
Ann Net Growth3 (%) |
|---|---|---|---|---|---|---|---|---|---|
| Rathbones Investment Management |
52,900 |
2,911 |
(2,651) |
260 |
32 |
34,587 |
2,666 |
90,445 |
1.0 |
| Bespoke portfolios |
47,801 |
2,604 |
(2,428) |
176 |
(90) |
33,754 |
2,490 |
84,131 |
0.7 |
| Managed via in-house funds |
5,099 |
307 |
(223) |
84 |
122 |
833 |
176 |
6,314 |
3.3 |
| Multi-asset funds4 |
3,093 |
291 |
(400) |
(109) |
– |
– |
121 |
3,105 |
(7.0) |
| Rathbones discretionary & managed |
55,993 |
3,202 |
(3,051) |
151 |
32 |
34,587 |
2,787 |
93,550 |
0.5 |
| Non-discretionary service |
666 |
14 |
(25) |
(11) |
(41) |
987 |
89 |
1,690 |
(3.3) |
| IW&I |
42,973 |
1,211 |
(1,705) |
(494) |
– |
(40,081) |
(2,257) |
141 |
(2.3) |
| Single-strategy funds |
6,762 |
613 |
(1,044) |
(431) |
– |
– |
169 |
6,500 |
(12.7) |
| Execution only |
2,770 |
192 |
(416) |
(224) |
9 |
4,244 |
293 |
7,092 |
(16.2) |
| Total Group |
109,164 |
5,232 |
(6,241) |
(1,009) |
– |
(263) |
1,081 |
108,973 |
(1.8) |
| Q2 ended 30 June 2025 |
Opening FUMA (£m) |
Gross Inflows (£m) |
Gross Outflows (£m) |
Net Flows (£m) |
Transfers1 (£m) |
IW&I Migrated Assets2 (£m) |
Market & Investment Performance (£m) |
Closing FUMA (£m) |
Ann Net Growth3 (%) |
|---|---|---|---|---|---|---|---|---|---|
| Rathbones Investment Management |
50,164 |
1,441 |
(1,294) |
147 |
9 |
34,366 |
5,758 |
90,444 |
1.2 |
| Bespoke portfolios |
45,034 |
1,318 |
(1,189) |
129 |
(20) |
33,533 |
5,454 |
84,130 |
1.1 |
| Managed via in-house funds |
5,130 |
123 |
(105) |
18 |
29 |
833 |
304 |
6,314 |
1.4 |
| Multi-asset funds4 |
3,125 |
133 |
(191) |
(58) |
– |
– |
38 |
3,105 |
(7.4) |
| Rathbones discretionary & managed |
53,289 |
1,574 |
(1,485) |
89 |
9 |
34,366 |
5,796 |
93,549 |
0.7 |
| Non-discretionary service |
626 |
9 |
(20) |
(11) |
(13) |
971 |
116 |
1,689 |
(7.0) |
| IW&I |
41,259 |
519 |
(589) |
(70) |
– |
(39,829) |
(1,219) |
141 |
(0.7) |
| Single-strategy funds |
6,440 |
299 |
(464) |
(165) |
– |
– |
226 |
6,501 |
(10.2) |
| Execution only |
2,438 |
108 |
(176) |
(68) |
4 |
4,229 |
490 |
7,093 |
(11.2) |
| Total Group |
104,052 |
2,509 |
(2,734) |
(225) |
– |
(263) |
5,409 |
108,973 |
(0.9) |
(iii) Breakdown of wealth management FUMA and flows by channel
| 6 months ended 30 June 2025 |
Opening FUMA (£m) |
Gross Inflows (£m) |
Gross Outflows (£m) |
Net Flows (£m) |
Transfers1 (£m) |
IW&I Migrated Assets2 (£m) |
Market & Investment Performance (£m) |
Closing FUMA (£m) |
Ann Net Growth3 (%) |
|---|---|---|---|---|---|---|---|---|---|
| Total direct |
35,933 |
1,860 |
(1,787) |
73 |
1,876 |
23,056 |
1,679 |
62,617 |
0.4 |
| Total financial adviser linked |
16,967 |
1,052 |
(864) |
188 |
(1,844) |
11,531 |
986 |
27,828 |
2.2 |
| Total discretionary service |
52,900 |
2,912 |
(2,651) |
261 |
32 |
34,587 |
2,665 |
90,445 |
1.0 |
| Execution only |
2,770 |
192 |
(416) |
(224) |
9 |
4,244 |
293 |
7,092 |
(16.2) |
| Non-discretionary service |
666 |
14 |
(25) |
(11) |
(41) |
987 |
89 |
1,690 |
(3.3) |
| Total wealth management |
56,336 |
3,118 |
(3,092) |
26 |
– |
39,818 |
3,047 |
99,227 |
0.1 |
| IW&I |
42,973 |
1,211 |
(1,706) |
(495) |
– |
(40,081) |
(2,256) |
141 |
(2.3) |
| Total wealth management for enlarged Group |
99,309 |
4,329 |
(4,798) |
(469) |
– |
(263) |
791 |
99,368 |
(0.9) |
| Q2 ended 30 June 2025 |
Opening FUMA (£m) |
Gross Inflows (£m) |
Gross Outflows (£m) |
Net Flows (£m) |
Transfers1 (£m) |
IW&I Migrated Assets2 (£m) |
Market & Investment Performance (£m) |
Closing FUMA (£m) |
Ann Net Growth3 (%) |
|---|---|---|---|---|---|---|---|---|---|
| Total direct |
33,990 |
924 |
(821) |
103 |
1,848 |
22,835 |
3,841 |
62,617 |
1.2 |
| Total financial adviser linked |
16,174 |
517 |
(473) |
44 |
(1,838) |
11,530 |
1,918 |
27,828 |
1.1 |
| Total discretionary service |
50,164 |
1,441 |
(1,294) |
147 |
10 |
34,365 |
5,759 |
90,445 |
1.2 |
| Execution only |
2,438 |
108 |
(176) |
(68) |
3 |
4,230 |
489 |
7,092 |
(11.2) |
| Non-discretionary service |
626 |
9 |
(20) |
(11) |
(13) |
971 |
117 |
1,690 |
(7.0) |
| Total wealth management |
53,228 |
1,558 |
(1,490) |
68 |
– |
39,566 |
6,365 |
99,227 |
0.5 |
| IW&I |
41,259 |
519 |
(589) |
(70) |
– |
(39,829) |
(1,219) |
141 |
(0.7) |
| Total wealth management for enlarged Group |
94,487 |
2,077 |
(2,079) |
(2) |
– |
(263) |
5,146 |
99,368 |
– |
(iiv) Total group FUMA
| 6 months ended 30 June 2025 |
Opening FUMA (£m) |
Gross Inflows (£m) |
Gross Outflows (£m) |
Net Flows (£m) |
Transfers1 (£m) |
IW&I Migrated Assets2 (£m) |
Market & Investment Performance (£m) |
Closing FUMA (£m) |
Ann Net Growth3 (%) |
|---|---|---|---|---|---|---|---|---|---|
| Rathbones Investment Management |
56,336 |
3,118 |
(3,092) |
26 |
– |
39,818 |
3,047 |
99,227 |
0.1 |
| Rathbones Asset Management |
15,751 |
1,637 |
(2,000) |
(363) |
– |
– |
418 |
15,806 |
(4.6) |
| IW&I |
42,973 |
1,211 |
(1,705) |
(494) |
– |
(40,081) |
(2,255) |
143 |
(2.3) |
| Total |
115,060 |
5,966 |
(6,797) |
(831) |
– |
(263) |
1,210 |
115,176 |
(1.4) |
| Group eliminations5 |
(5,896) |
(734) |
556 |
(178) |
– |
– |
(129) |
(6,203) |
6.0 |
| Total |
109,164 |
5,232 |
(6,241) |
(1,009) |
– |
(263) |
1,081 |
108,973 |
(1.8) |
- Transfers represent client FUMA which has transferred from one service to another and other intra-group movements. These are excluded from net inflows.
- The IW&I asset migration column/row does not net to zero following the change in classification of certain previously reported FUMA to ensure alignment of approach.
There is no impact on revenue. - Annualised net growth calculated as net flows/opening FUMA.
- Net inflows into multi-asset funds include direct flows and flows into managed solutions delivered using in-house funds.
- Group eliminations represent RAM funds that are held within portfolios managed by RIM (£6.2 billion) teams. Consequently, after excluding the RAM funds, the FUMA is £93.2 billion in RIM.
30 July 2025
