REG - Rathbones Group PLC - First Quarter Trading Update

RathbonesAnnouncement

Today 07:00

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RNS Number : 2561D  Rathbones Group PLC  07 May 2026

 

First quarter trading update for the three months ended 31 March 2026

 

Continued focus on disciplined execution of our strategy

 

Jonathan Sorrell, Group Chief Executive Officer of Rathbones:

 

"Operating income grew 9.4% compared with Q1 2025, reflecting improved market
levels relative to the prior year. Underlying flows in our wealth proposition
continued to stabilise during the first quarter against a volatile market
backdrop. Excluding execution-only services, wealth flows were broadly flat in
Q1 after absorbing an estimated increase of £0.2 billion of tax-driven
withdrawals as a consequence of the October 2024 Budget, activity that was
concentrated in January.

At group level, net outflows in the quarter largely reflected this elevated
tax-related activity, together with ongoing outflows from low-margin
execution-only services and the continued challenging operating environment in
UK retail active asset management.

We remain focused on executing our strategy with discipline and consistency of
purpose as we pursue our ambition to be the best wealth manager in the UK, by
far."

 

Financial Highlights:

 

•     Total operating income for the quarter was £240.7 million, up 9.4%
from £220.1 million in Q1 2025.

•     Funds under management and administration ("FUMA") totalled £113.6
billion at the quarter end (31 December 2025: £115.6 billion) comprising:

•     £105.2 billion in the Wealth Management segment (31 December 2025:
£106.2 billion).

•     £15.7 billion of gross FUM in the Asset Management segment (31
December 2025: £16.6 billion), equivalent to £8.4 billion on a consolidated
basis, after excluding Wealth Management FUMA invested in Asset Management
funds (31 December 2025: £9.4 billion).

•     Total net outflows in the quarter were £0.8 billion (Q1 2025: £0.8
billion), comprising:

•     Wealth Management net outflows of £0.4 billion (Q1 2025: £0.5
billion), with £0.2 billion of this related to execution‑only services.

•     Asset Management net outflows of £0.4 billion (Q1 2025: £0.3
billion).

 

Annual General Meeting and interim results dates:

 

Annual General Meeting

The Annual General Meeting (AGM) will be held today, 7 May, at 9:00am at our
London head office at 30 Gresham Street, London, EC2V 7QN. Similar to last
year, the Board has made arrangements to enable members to attend and
participate in the meeting electronically should they wish to do so.
Instructions on how to attend and participate electronically are set out in
the Notice of AGM.

Interim results

The interim results for the six months to 30 June 2026 will be announced on 29
July 2026.

Detailed financial information

 

Operating income:

 

 Quarter ended 31 March          2026   2025   Change  Change

                                 £m     £m     £m      %
 Wealth Management
 Fees                            151.9  137.1  14.8    10.8%
 Commissions                     26.9   24.3   2.6     10.7%
 Net interest income(1)          23.2   16.1   7.1     44.1%
 Fees from advisory services(2)  15.9   14.7   1.2     8.2%
 Other income(1)                 1.3    6.9    (5.6)   (81.2)%
                                 219.2  199.1  20.1    10.1%
 Asset Management                21.5   21.0   0.5     2.4%
 Operating income                240.7  220.1  20.6    9.4%
 1.  Net interest income should be considered in conjunction with 'Other
 income' which includes net interest margin on client money balances. In 2025,
 prior to the IW&I migration, the income generated from IW&I client
 money deposits was reported within 'Other income'. This is now included in
 'Net interest income'.

 2. Including income from financial planning services, trust and tax.

 

Funds under management and administration:

 

(I) Segment FUMA

 

                                              Opening FUMA  Gross inflows  Gross outflows  Net flows  Transfers  Market & investment performance      Closing FUMA  Annualised Net Growth
 Quarter ended 31 March and 5 April 2026      £m            £m             £m              £m         £m         £m                                   £m            (%)
 Wealth Management(3)                         106,205       2,767          (3,194)         (427)      -          (584)                                105,194       (1.6)

 Asset Management
 Gross segment FUMA inclusive of intra-group  16,600        865            (1,115)         (250)      -          (667)                                15,683        (6.0)
 Intra-group FUMA(4)                          (7,188)       (437)          269             (168)      -          113                                  (7,243)       9.3
 Asset Management excluding intra-group       9,412         428            (846)           (418)      -          (554)                                8,440         (17.8)

 Total Group                                  115,617       3,195          (4,040)         (845)      -          (1,138)                              113,634       (2.9)
 3. FUMA at 5 April 2026 of £105.2 billion includes £51.8 billion in respect
 of which the first quarter fees were applied using the FUMA value on 31 March
 2026.  The value of this FUMA at 31 March 2026 was £51.0 billion

 4. Intragroup FUMA comprises assets managed by the Asset Management segment
 which relates to propositions of the Wealth Management segment.

 

(II) Breakdown of segmental FUMA and flows

 

 Quarter ended 31 March and 5 April 2026  Opening FUMA  Gross inflow  Gross outflow  Net flows  Transfers  Market and investment performance  Closing FUMA  Annualised Net Growth

                                          £m            £m            £m             £m         £m         £m                                 £m            %
 Discretionary & Managed                  94,707        2,497         (2,726)        (229)      (30)       (621)                              93,827        (1.0)
 MPS & Select services                    4,073         81            (57)           24         -          (69)                               4,028         2.4
 Execution only                           7,425         189           (411)          (222)      30         106                                7,339         (12.0)
 Wealth Management(3)                     106,205       2,767         (3,194)        (427)      -          (584)                              105,194       (1.6)
 Multi Asset funds                        9,361         513           (456)          57         -          (296)                              9,122         2.4
 Single Strategy funds                    7,239         352           (659)          (307)      -          (371)                              6,561         (17.0)
 Asset Management - gross segmental FUMA  16,600        865           (1,115)        (250)      -          (667)                              15,683        (6.0)
 Intra-group FUMA(4)                      (7,188)       (437)         269            (168)      -          113                                (7,243)       9.3
 Asset Management excluding intra-group   9,412         428           (846)          (418)      -          (554)                              8,440         (17.8)

 Total Group                              115,617       3,195         (4,040)        (845)      -          (1,138)                            113,634       (2.9)

 

7 May 2026

For further information contact:

 

Rathbones Group Plc

Investors

Shelly Patel, Head of Investor Relations

Tel: +44 (0)20 7399 0071

Email: shelly.patel@rathbones.com (mailto:shelly.patel@rathbones.com)

Press

Tessa Curtis, Director of Corporate Communications & Affairs

Tel: +44 (0)7833 346238

Email: tessa.curtis@rathbones.com (mailto:tessa.curtis@rathbones.com)

 

Rathbones Group Plc

Rathbones Group Plc (Rathbones), through its subsidiaries, is one of the UK's
leading providers of investment and wealth management services for private
clients, charities, trustees and professional partners. This includes
discretionary investment management, fund management, tax planning, trust and
company management, financial advice and banking services.

Rathbones manages £113.6 billion of client assets, of which £15.7 billion is
managed by its asset management arm, Rathbones Asset Management Limited. A
FTSE 250 company (LSE:RAT), Rathbones has over 3,300 employees, including
over 700 investment managers and financial planners, in 21 offices across the
UK and the Channel Islands, providing its clients with high-quality,
personalised wealth management services.

 

www.rathbones.com (https://www.rathbones.com/en-gb/wealth-management)

 

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