Rathbones FUMA rises 11% as first-half profit increases

Rathbones Group Plc (LON:RAT) has announced its interim results for the 6 months ended 30 June 2026

Jonathan Sorrell, Group Chief Executive, said:

“The first half of 2026 has been demanding, but it has also demonstrated what Rathbones is capable of. FUMA grew by 11% year on year to £121 billion and underlying PBT increased by 14% year on year to £123 million. These results reflect continued healthy gross inflows and growing momentum across the business.

Since our announcement on 16 June, our regulatory programme to address the recommendations from the FCA Skilled Person Review has remained a key priority. We are approaching this work with rigour, urgency and transparency as we address the findings and deliver the agreed programme of work. Six weeks on, we have made good initial progress, client reaction has been supportive and resilient, and our focus remains firmly on our long-term ambition to become the best wealth manager in the UK, by far.

In late February, I set out our strategy to achieve that ambition, built on four priorities: being the first choice for clients, the first choice for talent, the most effective operator and the most reputable brand. We are making good progress across each of these.”

Financial highlights

–  Funds under management and administration (FUMA) increased by 10.7% year on year to £120.7 billion as at 30 June 2026 (30 June 2025: £109.0 billion).

–  Wealth Management recorded net inflows of £0.4 billion in Q2, with Discretionary & Managed net inflows of £0.5 billion, demonstrating stronger client asset retention and momentum in new business activity. This offset net outflows of £0.4 billion in Q1, resulting in broadly neutral net flows in Wealth for the first half overall.

–  Asset Management net outflows of £0.4 billion in Q2 were similar to the first quarter, reflecting continuing industry-wide pressure on active equity strategies.

–  Accordingly, Group net flows for Q2 were flat overall, whilst net outflows for H1 were £0.9 billion.

–  Operating income increased 8.6% to £487.5 million (HY 2025: £449.1 million), driven by higher investment management fees, increased commission income and growth in financial planning advice revenues. 

–  Underlying profit before tax increased by 14.4% to £123.2 million (HY 2025: £107.7 million), resulting in the underlying operating margin improving to 25.3% (HY 2025: 24.0%).

–  Profit before tax for the first half was £72.1 million, an increase of 15.7% on the prior period.

–  Acquisition and integration costs continued to decline as anticipated, falling to £9.5 million (HY 2025: £23.2 million), reflecting our progression beyond the integration phase of Investec Wealth & Investment, and supporting our expectation that integration costs will cease during 2027.

–  Costs of £19.0 million (HY 2025: £nil) were recognised in relation to the FCA Skilled Person Review.

Outlook and guidance

The second half of 2026 will be affected by the cost of the actions announced on 16 June 2026 in relation to the Skilled Person Review. These actions include the cessation of charging fees on the cash element of portfolios, which we continue to expect will reduce income and operating profit by c.£9m over the six month period. Lower technology costs, following the expected completion of the implementation of Salesforce by the end of the third quarter, along with the delivery of ongoing cost efficiencies, are expected to support second half performance.

The cessation of charging fees on the cash element of portfolios is expected to reduce the underlying operating margin for the second half of the year by 1.3 percentage points. The Q4 operating margin target has therefore been revised from 30.0% to 28.7%. The Group remains on track to achieve the revised target, subject to the conditions set out previously relating to FUMA growth, inflation and interest rates. The Group’s progressive dividend policy remains unchanged.

Capital, share buyback and dividend

The Group successfully completed its £50 million share buyback programme, the first in its history, on 16 February 2026. We launched a further share buyback programme of up to £20 million, which concluded on 13 July 2026.

Alongside the buyback, we are increasing our interim dividend by 3.2% to 32.0p, reinforcing our progressive approach to shareholder distributions.

Interim results presentation

A presentation detailing Rathbonesʼ 2026 interim results is available on the investor relations website under the tab ʻResults Presentationsʼ (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/6a3110b02b12bb000f9cf9f3/aberm) or by dialling in using the conference call details below: 

United Kingdom (Local): +44 (0)20 3936 2999
United Kingdom (Toll-Free): +44 (0)800 189 0158
Global dial in numbers
Participant access code: 680592 

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/en-gb/wealth-management/investor-relations/results-reports-and-presentations.