Rathbones Group (RAT) H1 2026 earnings summary

Executive summary

• FUMA rose 10.7% year-on-year to £120.7bn as of 30 June 2026, with operating income up 8.6% to £487.5m and underlying profit before tax up 14.4% to £123.2m.

• Statutory profit before tax increased 15.7% to £72.1m, despite non-underlying costs from the Skilled Person Review.

• Wealth Management returned to net inflows in Q2, offsetting Q1 outflows, while Asset Management continued to see net outflows due to industry-wide pressure on active equity strategies.

• Strategic progress includes enhanced regulatory compliance, digital transformation, and improved client and colleague engagement.

• Interim dividend increased by 3.2% to 32.0p per share, reflecting improved performance and a progressive dividend policy.

Financial highlights

• Operating income reached £487.5m, up from £449.1m in H1 2025, driven by higher investment management fees and financial planning revenues.

• Underlying operating margin improved by 1.3 percentage points to 25.3%.

• Underlying EPS up 17.1% to 88.5p; basic EPS was 50.4p; interim dividend increased 3.2% to 32.0p per share.

• Wealth Management segment achieved neutral net flows for H1, with Q2 net inflows of £0.4bn.

• Profit after tax was £51.7m.

Outlook and guidance

• Q4 2026 margin target revised to 28.7% due to cessation of fees on cash in portfolios, down from 30%.

• H2 2026 Wealth Management fee income expected to be £9m lower due to regulatory changes; tech costs to be £6m lower as Salesforce project concludes.

• Margin target contingent on FUMA growth, stable inflation, and interest rates.

• Progressive dividend policy to continue; Skilled Person Review costs to be absorbed by profit growth.