REG-Rathbone Brothers Plc : 1st Quarter Results <Origin Href="QuoteRef">RAT.L</Origin>

RathbonesAnnouncement

11/05/2017 07:05

      
Rathbone Brothers Plc
  
Funds under management up 4.7% to 35.8 billion  
  
  
Rathbone Brothers Plc ("Rathbones") announces a trading update for the period from 1 January 2017 to 31 March 2017.
  
At the Annual General Meeting later today, Mark Nicholls, Chairman of Rathbones, will say:
  
"Strong investment markets and continuing growth helped our funds under management reach 35.8 billion during the first quarter of 2017, up 4.7% from 31 December 2016, and 22.2% from a year ago.
    
"Our investment businesses continue to perform well and activity is high across the group as we continue to progress towards our strategic goals. We continue to seek further growth opportunities, but remain mindful of continuing political and economic uncertainties."
    
Highlights: 
  
Total funds under management were 35.8 billion at the end of the first quarter*, up 4.7% from 34.2 billion at 31 December 2016 and 22.2% from 29.3 billion a year ago. In the first quarter, the FTSE 100 Index increased 2.6% and the MSCI WMA Private Investor Balanced Index increased 3.1%.
Total net growth of funds under management in Investment Management was 318 million, representing a total net annualised growth rate of 4.2% (2016: 3.6%). This comprises net organic growth of 248 million and acquired inflows of 70 million for the quarter. Net organic growth in the first quarter represents an annualised growth rate of 3.3% compared to 1.5% in the first three months of 2016.
Funds under management in Unit Trusts increased 10.0% to 4.4 billion at 31 March 2017 from 4.0 billion at 31 December 2016, with net inflows of 109 million during the quarter. Net operating income of 7.3 million (2016: 5.4 million) was up 35.2% year on year in the first three months of 2017.
Net operating income in Investment Management of 63.3 million (2016: 53.5 million) was up 18.3% year on year in the first three months of 2017. The FTSE 100 Index was 7332 on our 5 April billing date, up 20.4% compared to 6091 on the same date in 2016. The MSCI WMA Private Investor Balanced Index, measured over the same period, increased by 17.2%.
Fee income of 46.0 million (2016: 37.7 million) rose 22.0% year on year reflecting positive markets and growth in organic and acquired new business over the period.
Commission income of 11.0 million (2016: 9.8 million) was up 12.2% year on year, reflecting higher trading volumes particularly towards the end of the tax year. 
Net interest income of 2.8 million in the first three months of 2017 was inline with the 2.8 million earned in the corresponding period in 2016. Cash in client portfolios increased to 2.1 billion in the first quarter of 2017 (2016 average: 1.6 billion). Loans and advances to customers were 120.3 million at 31 March 2017, up 8.4% on the 111.0 million at 31 December 2016.
Fees from advisory services and other income grew 9.4% to 3.5 million (2016: 3.2 million), largely reflecting growth in the Vision group since its acquisition in 2015.
                
* Funds under management at the end of the first quarter are measured at 5 April for Investment Management (to coincide with the first key charging date for Investment Management private clients) and at 31 March for Unit Trusts.
  
     
Net operating income
                                                                                                                                                             
      
   3 months   ended 31 March   
      
   2017   
   2016   
   Change   
   Investment   Management   
   m   
   m   
   %   
   -   Fees   
   46.0   
   37.7   
   22.0%   
   -   Commissions   
   11.0   
   9.8   
   12.2%   
   -   Net interest income   
   2.8   
   2.8   
   0.0%   
   -   Fees from advisory services1 & other income   
   3.5   
   3.2   
   9.4%   
      
   63.3   
   53.5   
   18.3%   
   Unit   Trusts   
   7.3   
   5.4   
   35.2%   
   Net operating income   
   70.6   
   58.9   
   19.9%   
    
(1) Including income from trust, tax and advisory services.
    
Funds under management
                                                                                                                                                                                                                                                                                                                                                                                                                              
   (i) Investment Management   
   Period   ended 5 April2   
      
   2017   
   2016   
   Change   
      
   m   
   m   
   %   
   Opening   FUM (1 January)   
   30,184   
   26,126   
      
   Inflows   
   895   
   616   
      
      Organic new business   
   825   
   482   
      
      Acquired new business   
   70   
   134   
      
   Outflows   
   (577)   
   (382)   
      
   Market   effect and investment performance   
   960   
   (210)   
      
   Closing FUM (5 April)   
   31,462   
   26,150   
   20.3%   
      
      
      
      
   Underlying   annualised rate of net organic growth   
   3.3%   
   1.5%   
      
   Total   annualised net organic and acquired growth    
   4.2%   
   3.6%   
      
      
      
      
      
   FTSE   100 Index (5 April)   
   7332   
   6091   
   20.4%   
   MSCI   WMA Private Investor Balanced Index (5 April)   
   1538   
   1312   
   17.2%   
      
   (ii) Unit Trusts   
   3 months   ended 31 March   
      
   2017   
   2016   
   Change   
      
   m   
   m   
   %   
   Opening   FUM (1 January)   
   4,051   
   3,073   
      
   Inflows   
   355   
   263   
      
   Outflows   
   (246)   
   (133)   
      
   Market   effect and investment performance   
   201   
   (35)   
      
   Closing FUM (31 March)   
   4,361   
   3,168   
   37.7%   
      
      
      
      
   Total funds under management3   
   35,823   
   29,318   
   22.2%   
    
(2) Key charging dates for investment management clients are 5 April, 30 June, 30 September and 31 December. Unit trusts income accrues on daily levels of funds under management.
(3) Includes 967 million (2016: 877 million) of funds under execution only mandates. 
      
The FTSE 100 Index closed at 7385 on 10 May 2017, a rise of 0.7% since 5 April 2017, which has increased the value of funds under management. Investment management fee income in the first quarter is dependent upon the value of funds under management at 5 April 2017.
    
Rathbone Brothers Plc's interim results for the six months to 30 June 2017 will be announced on 25 July 2017.
    
11 May 2017
    
For further information contact:
               
   Rathbone Brothers Plc
Tel: 020 7399 0000
email: shelly.patel@rathbones.com

         

   Philip   Howell, Chief Executive
Paul   Stockton, Finance Director
Shelly   Patel, Investor Relations Manager         
   Camarco
Tel:   020   3757 4984
email: ed.gascoigne-pees@camarco.co.uk

         

   Ed   Gascoigne-Pees   
            
Rathbone Brothers Plc 
    
Rathbone Brothers Plc ("Rathbones"), through its subsidiaries, is a leading provider of high-quality, personalised investment and wealth management services for private clients, charities and trustees. Our services include discretionary investment management, unit trusts, banking and loan services, financial planning, unitised portfolio services, and UK trust, legal, estate and tax advice.
    
Rathbones has over 1,100 staff in 16 UK locations and Jersey; its headquarters is 8 Finsbury Circus, London.
    
rathbones.com
         


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Source: Rathbone Brothers Plc  via Globenewswire