Rathbones Group Plc

For first half 2026, FUMA was GBP 120.7 billion, up 10.7% year on year and up 4.4% or GBP 5.1 billion since the start of 2026. Operating income rose 8.6% to GBP 487.5 million, underlying profit before tax increased 14.4% to GBP 123.2 million, and statutory profit before tax rose 15.7% to GBP 72.1 million. Underlying basic EPS was GBP 0.885, up 17.1%, and the operating margin improved 1.3 percentage points to 25.3%; the interim dividend was GBP 0.32 per share, up 3.2% year on year. Net outflows for the first half were GBP 0.9 billion, versus GBP 1 billion in the first half of 2025, while Q2 group net outflow narrowed to GBP 31 million and Wealth Management recorded GBP 450 million of Q2 net inflows. Management said the full-year 30% Q4 margin target was revised down to 28.7% because the cessation of fees on cash in portfolios will reduce second-half margin by 1.3 percentage points; it still expects to reach the revised target, subject to FUMA growth, inflation and base-rate conditions.

Jon Sorrell struck an upbeat but disciplined tone, saying the firm is making “pleasing progress” against the strategy set in February and that the business has more pace, action and decisiveness. He framed the FCA-related program as something that will make Rathbones “simpler, stronger, and better equipped for long-term growth,” rather than a distraction, and said client and colleague reactions had been supportive. Strategically, he highlighted simplification, better governance, stronger client outcomes, and a more measurable operating model across clients, talent, operations and brand.

Iain Hooley emphasized broad financial improvement from higher FUMA, the full-year benefit of GBP 76 million of synergies, and cost discipline. He said underlying PBT grew 14.4% to GBP 123.2 million and margin improved to 25.3%, while statutory PBT was GBP 72.1 million after non-underlying costs including Skilled Person Review charges. He also pointed to a strong capital position with a total capital ratio of 18.3% and GBP 166 million of surplus capital, plus completion of the share buyback program, which bought over 3.5 million shares or 3.3% of shares in issue. On guidance, he said the cash-fee change will cut second-half margin by 1.3 percentage points, but technology savings of about GBP 6 million in the second half and continuous-improvement savings should help support the revised 28.7% Q4 margin target.

Analysts focused on the FCA review, financial planning capacity, Wealth Management flow momentum, and the weak Asset Management business. Management said the review had progressed well over the first six weeks, with no material client outflows or staffing impact, and that the affected business impact was negligible so far; it also said the targeted client review would likely involve a sample of about 300 files and that review and redress costs are insured, though fines are not. On financial planning, Jon Sorrell said planners are already at high capacity, hiring is difficult, and the priority is to grow capacity organically through the Rathbones Institute. On Asset Management, he said Rathbones remains committed to active management, is adding selected strategies and teams, and is also looking at institutional channels, but patience is required because flows follow performance and the style remains out of favor near term.